Vonage announces that Michael Snyder stepped down from his position as Chief Executive Officer and resigned from the Company's Board of Directors effective April 11, 2007. The Company also announced that Jeffrey A. Citron, the Company's Chairman, has been appointed as the Company's interim Chief Executive Officer and is expected to serve on a short-term basis. In addition, the Company will immediately commence a search for Mr. Snyder's replacement.
Mr. Citron, Vonage Chairman and interim CEO said, "Mike has made valuable contributions to the growth of our business and we will miss him. We thank him and wish him well in his future endeavors."
The Company also announced its preliminary estimation 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
The Company has not finalized its financial statements for the quarter ended March 31, 2007.
Additionally, Vonage announced cost cutting measures focused on reducing the Company's loss from operations. Mr. Citron said, "In order to strengthen Vonage's financial position, we are taking a number of measures to reduce our costs and operating expenses. We remain focused on improving our competitive position in the marketplace."
Vonage announced plans to reduce its marketing expense by approximately $110 million. As a result, the Company 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.
The Company expects its cost cutting measures to enhance shareholder value and improve its competitiveness in the marketplace.
Conference Call and Webcast Management will host an investor conference call on Thursday, April 12, 2007 at 8:00 AM ET to discuss this information and other recent developments. To participate, please dial (800) 289-0533 approximately ten minutes prior to the call. International callers should dial (913) 981-5525.
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 and will be available for two weeks.