Michael Snyder resigned his position as CEO of Vonage. Jeffrey A. Citron, the company's Chairman, has been appointed interim CEO while the company undertakes a search for a permanent replacement.
Vonage issued the following preliminary estimate 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
Vonage also announced cost cutting measures focused on reducing its ongoing losses from operations. The company plans to reduce its marketing expense by approximately $110 million. As a result, Vonage 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 workforce reduction.
http://www.vonage.com
