Reflecting the Company's previously stated plans to increase investment in its strategic growth initiatives, Vonage reported adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) of $32 million, which includes $7 million in growth initiative funding. Adjusted EBITDA is down from $40 million sequentially and $43 million in the year ago quarter. Similarly, income from operations was $21 million, a decrease from $28 million sequentially and $30 million in the year ago quarter. Net income was $19 million or $0.08 per share excluding adjustments(1), a decline from $26 million or $0.11 per share sequentially, and a decline from $23 million or $0.10 per share in the year ago quarter. GAAP net income was $14 million or $0.06 per share, down from $350 million or $1.55 per share sequentially due to a one-time non-cash income tax benefit recognized in the fourth quarter, and down from $21 million or $0.10 per share a year ago. Revenue totaled $216 million, flat sequentially and down from $220 million the prior year.

Marc Lefar, Vonage Chief Executive Officer, said, "Our financial results were consistent with previous guidance as we increased investment in our strategic growth initiatives. Our core business is stable and generated EBITDA which was in line with recent quarters."

"Although churn increased slightly during the first quarter, it has declined since peaking in January. Based on this positive trend, we are confident churn will be lower in the second quarter," said Lefar.

"We are making tangible progress executing on our growth initiatives. In roughly eight weeks, over one million people downloaded the new Vonage Mobile app. Our plans to expand into new international markets are gaining traction with the consummation of the exciting new partnership with Globe™ in the Philippines which we announced this morning," added Lefar.

With more than three million Filipinos living in the U.S., the Filipino calling segment represents a substantial growth opportunity for Vonage and for Globe™. This attractive customer segment is highly educated, has an average income that is 50% higher than the U.S. population, has a high penetration of broadband service and a high affinity for staying connected to friends and family overseas.

"We are pleased to sign our first international partnership with Globe," said Marc Lefar, Vonage Chief Executive Officer. "Together, we've structured a creative alliance that allows us to address the largely underserved needs of Filipino callers. We expect to be in market later this year."

"This alliance marks a significant milestone in Vonage's strategy to expand our services beyond North America," said Lefar. "By leveraging our heritage of VoIP innovation and expertise in international long distance, we can offer partners such as Globe the ability to expand their communications businesses in their local markets and beyond."

"We remain actively involved in discussions with several prospective partners and look forward to announcing additional alliances before the end of this year," added Lefar.

The company also announced that more than 500,000 customers have signed up for the Vonage Extensions product. Extensions broadens the benefits of the company's service beyond the walls of the home to any other phone, including mobile, for no additional cost. (3)

"With Vonage Extensions and Vonage Mobile, we are demonstrating tangible progress in executing against our mobile strategy," said Marc Lefar, Vonage Chief Executive Officer. "More than 15% of Vonage's international calling minutes now originate from mobile devices. This has grown from a base that was negligible just nine months ago before these two mobile products were introduced. In the coming months, we expect to continue to add new capabilities to Vonage Mobile, and expand our products to meet customers' mobile communication needs."

Vonage is continually improving the Vonage Mobile app to enhance ease of use and performance, and plans to provide additional features in the coming months, including MMS, Bluetooth™ functionality and a low-cost international roaming capability.

To download Vonage Mobile or get more information on the app, please go to iTunes, Android Market or www.vonagemobile.com.

Management will host a webcast discussion of the quarter's results on Wednesday, May 2, 2012 at 10:00AM Eastern Time. To participate, please dial (877) 359-9508 approximately ten minutes prior to the call. International callers should dial (224) 357-2393. A replay will be available approximately two hours after the conclusion of the call until midnight May 15, 2012, and may be accessed by dialing (855) 859-2056. International callers should dial (404) 537-3406. The replay passcode is: 68992691.

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.

A live webcast of this event may be accessed by visiting 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. ]]> http://www.vonage-forum.com/article3373.html Vonage 2012-02-22T23:18:47-05:00 http://www.vonage-forum.com/article3372.html Savings of more than 70 percent on international calls to those without the app

HOLMDEL, N.J., Feb. 8, 2012 /PRNewswire/ -- Vonage Holdings Corp. (NYSE: VG) announced the launch of Vonage Mobile^®, the new iPhone^® and Android^™ app that lets users make free high-definition calls and send free texts to all users of the app, worldwide(1). The app works over Wi-Fi, 3G and 4G wireless data networks.

To view the multimedia assets associated with this release, please click: http://www.multivu.com/mnr/53694-vonage-mobile-app-iphone-android-skype-free-international-calling-texting

When calling those who have not yet downloaded the app, Vonage Mobile provides ultra low-cost international calling with per-minute rates that are on average 70 percent less than major mobile carriers and 30 percent less than Skype^™(2). Users can instantly add calling credit directly from the app through iTunes^® or Android Market^™ in increments of $4.99 and $9.99.

Vonage Mobile uses the phone's existing mobile number and contact list, eliminating the need for unique user names and duplicate identities for contacts. Users can instantly build a free global calling and texting network using the app's multi-invite system from their existing contacts.

"Vonage Mobile consolidates the best features of our prior applications, while adding important functionality, better value and improved ease of use," said Marc Lefar, CEO of Vonage. "It combines the best of free high-def voice and messaging along with incredible value for traditional international calls, all while using the existing mobile number and address book for unsurpassed ease of use."

In addition, calls to any phone in the United States, Canada or Puerto Rico from anywhere in the world will be free for a limited time(3).

Users do NOT need to be a Vonage customer to use the app. However, as an added benefit to all app users, calls to Vonage home or business lines are also free. The Vonage Mobile app can be downloaded to any iPhone or Android device for free; and it also works on the iPad®, iPod Touch® and Android™ Tablets. 

Strong Financial Platform Enables Investment for Growth

Marc Lefar, Vonage Chief Executive Officer, said, "We are pleased to report record high annual net income, excluding adjustments and adjusted EBITDA along with free cash flow in excess of $100 million for the second consecutive year. For the quarter, we maintained adjusted EBITDA above $40 million, the fifth consecutive quarter, while net income, excluding adjustments grew 68 percent over the prior year.

"Now that we have stabilized our core business and are generating meaningful cash flow, we will accelerate our investment in strategic growth initiatives during 2012.  While reducing adjusted EBITDA in the short term, we believe this investment will fund growth in mobile and geographic expansion. Even with this increased level of funding, we expect to further strengthen our cash position during the year.

Management will host a webcast discussion of the quarter's results on Wednesday, February 15, 2012 at 10:00AM Eastern Time. To participate, please dial (877) 359-9508 approximately ten minutes prior to the call. International callers should dial (224) 357-2393. A replay will be available approximately two hours after the conclusion of the call until midnight February 28, 2012, and may be accessed by dialing (855) 859-2056. International callers should dial (404) 537-3406. The replay passcode is: 46849483.

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.