HOLMDEL, N.J., April 12 /PRNewswire-FirstCall/ -- Vonage Holdings Corp.
(NYSE: VG), a leading provider of broadband telephone services, today
announced that Michael Snyder stepped down from his position as Chief
Executive Officer and resigned from the Company's Board of Directors
effective April 11, 2007. The Company also announced that Jeffrey A.
Citron, the Company's Chairman, has been appointed as the Company's interim
Chief Executive Officer and is expected to serve on a short-term basis. In
addition, the Company will immediately commence a search for Mr. Snyder's
Mr. Citron, Vonage Chairman and interim CEO said, "Mike has made
valuable contributions to the growth of our business and we will miss him.
We thank him and wish him well in his future endeavors."
The Company also announced its preliminary estimation of its operating
and financial results for the quarter ended March 31, 2007:
-- Total Revenue (in millions): $195
-- Gross Subscriber Line Additions: 332,000
-- Net Subscriber Line Additions: 166,000
-- Average Monthly Customer Churn: 2.4%
-- Marketing Cost per Gross Subscriber Line Addition: $275
The Company has not finalized its financial statements for the quarter
ended March 31, 2007.
Additionally, Vonage announced cost cutting measures focused on
reducing the Company's loss from operations. Mr. Citron said, "In order to
strengthen Vonage's financial position, we are taking a number of measures
to reduce our costs and operating expenses. We remain focused on improving
our competitive position in the marketplace."
Vonage announced plans to reduce its marketing expense by approximately
$110 million. As a result, the Company expects marketing expenditures of
roughly $310 million for 2007.
The Company also announced plans to reduce its G&A by $30 million
through the remainder of 2007 through consolidation of operations and
The Company expects its cost cutting measures to enhance shareholder
value and improve its competitiveness in the marketplace.
Conference Call and Webcast
Management will host an investor conference call on Thursday, April 12,
2007 at 8:00 AM ET to discuss this information and other recent
developments. To participate, please dial (800) 289-0533 approximately ten
minutes prior to the call. International callers should dial (913)
The webcast will be broadcast live through Vonage's Investor Relations
website at http://ir.vonage.com. Windows Media Player or RealPlayer is
required to listen to this webcast. A replay will be available shortly
after the live webcast and will be available for two weeks.
Safe Harbor Statement
This press release contains forward-looking statements regarding
financial and operating results, the planned reduction in our workforce,
anticipated SG&A savings in 2007 and marketing expense for 2007. In
addition, statements in this press release that are not historical facts or
information may be forward-looking statements. The forward-looking
statements in this release are based on information available at the time
the statements are made and/or management's belief as of that time with
respect to future events and involve risks and uncertainties that could
cause actual results and outcomes to be materially different. Important
factors that could cause such differences include, but are not limited to,
our history of net operating losses and our need for cash to finance our
growth; the competition we face; our dependence on our customers' existing
broadband connections; differences between our service and traditional
phone services, including our 911 service; uncertainties relating to
regulation of VoIP services; system disruptions or flaws in our technology;
our ability to manage our growth; the risk that VoIP does not gain broader
acceptance; our damaging and disruptive intellectual property and other
litigation; and other factors described in the "Risk Factors" section of
our registration statement on Form S-1, as amended (File No. 333-136773),
and in our subsequent periodic reports filed with the SEC. While we may
elect to update forward-looking statements at some point in the future, we
specifically disclaim any obligation to do so, and therefore, you should
not rely on these forward-looking statements as representing our views as
of any date subsequent to today.
Vonage (NYSE: VG) is a leading provider of broadband telephone services
with 2.4 million subscriber lines. Our award-winning technology enables
anyone to make and receive phone calls with a touch tone telephone almost
anywhere a broadband Internet connection is available. We offer
feature-rich and cost- effective communication services that offer users an
experience similar to traditional telephone services.
Our Residential Premium Unlimited and Small Business Unlimited calling
plans offer consumers unlimited local and long distance calling, and
popular features like call waiting, call forwarding and voicemail -- for
one low, flat monthly rate. Vonage's service is sold on the web and through
national retailers including Best Buy, Circuit City, Wal-Mart Stores Inc.
and Target and is available to customers in the U.S., Canada and the United
Kingdom. For more information about Vonage's products and services, please
Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage(R)
is a registered trademark of Vonage Marketing Inc., a subsidiary of Vonage
Vonage Investor Contacts: Vonage Media Contacts:
Leslie Arena Brooke Schulz
SOURCE Vonage Holdings Corp.