Thursday, April 12, 2007
Vonage Starts Cutting
Vonage says its quarterly results for the period ended March 31, 2007 will show $195 million revenue, 332,000 gross customer adds and 166,000 net adds. That would bring Vonage in flat with net adds for the fourth quarter of 2006, when it added 166,000 net customers.
Marketing cost for each gross customer addition, though, backed down to $275, towards the more historic range of $239 in the second quarter of 2006, $306 in the fourth quarter 2006, $254 in the third quarter and $239 in the second quarter last year.
Quarterly revenue of $195 million was stronger than the $180 million Vonage reported for the fourth quarter 2006. Monthly ARPU was $28.17.
But Vonage also expects to boost operating results by cutting $110 million in marketing expense, possibly a quarter of what it originally though it would spend this year. Vonage now expects to spend $310 million for 2007 marketing, instead of $400 million to $425 million.
A 10 percent force reduction also will slash SG&A costs of about $20 million in 2007. Planned cuts in other SG&A expenses are expected to generate an additional $10 million in savings.
Collectively, the moves will get Vonage very close to positive operating income, though not profitability.
Average internet access speeds are growing virtually everywhere in the world, though the estimates of “average” vary significantly. The...
You can see where this is going. Younger users text more than they talk, and though today's users 25 and above still talk more than they...
Is there a relationship between screen size and data consumption? One might think the answer clearly is “yes,” based on the difference bet...
USB-based device chargers can create noise that interferes with touchscreen operation especially when the chargers omit noise suppression ...