Vonage Loses $161.8 Million in Third Quarter

The improved net losses that Vonage Holdings Corp. recorded in the second quarter did not carry over into the third quarter.

The IP telephony provider on Thursday announced its earnings, which amounted to a net loss of $161.8 million, or $1.04 per share. That’s compared to a net loss of $33.3 million, or 22 cents per share, in the second quarter of 2007, and a net loss of $62.2 million, or 40 cents a share, in the third quarter of 2006.

Vonage blamed the losses on $133 million in litigation payouts to Verizon Communications Inc. and Sprint Nextel Corp. for patent infringement The firm also said it has settled another patent lawsuit filed last month by AT&T Inc. Vonage said it has agreed to pay AT&T $39 million over five years.

There was some good news for Vonage, however: Sales increased thanks to the addition of 77,763 subscriber lines. That’s about 20,000 more than in the second quarter of 2007. Vonage reported a 30 percent jump in revenue, which reached $210.5 million. That’s a bit higher than the second quarter of 2007 when revenue topped out at $205.9 million. Churn rose 3 percent, compared to 2.5 percent in the second quarter and 2.6 percent a year ago.

Vonage stocks were up 12.33 percent on its earnings news. Shares were trading for $2.46 at about 10 a.m. ET. That’s a marked improvement from the recent 52-week low of 89 cents.

AT&T Inc. www.att.com

Sprint Nextel Corp. www.sprint.com

Verizon Communications Inc. www.verizon.com

Vonage Holdings Corp. www.vonage.com

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