In this morning's paper (you didn't read it then?) we asked: "Is Vonage toast?" We thought it looked a bit brown around the edges.
Browner still now: the chief executive, Michael Snyder, is going, and 10% of the 1,800-strong workforce will follow. The chairman and founder Jeffrey Citron has taken over and is carrying out a top-to-bottom review.
Vonage has two problems: marketing costs are too high (it cost $275 to add each of its 160,000 subscribers in the past quarter) and it's in a crippling lawsuit against Verizon, which says it is infringing its patents. A judge ruled Vonage must pay 5.5% royalties on sales to Verizon; Vonage is appealing.
It's not looking good. And that's the best we can say... the stock price chart tells its own tale. (And we're not sure it's heard the Snyder news yet..)
