Despite Possible Bankruptcy, Vonage Revenues Are Up
Just because a company is facing a potentially crippling patent lawsuit that may very well drive it out of business doesn’t mean they can’t have an impressive sales and revenue quarter.
That’s what happened to Vonage last week. The embattled VoIP provider, locked in a protracted court battle with Verizon over its patents, announced a big jump in revenues, which rose 64 percent from a year ago to $195.9 million, the New York Times reported. The company still lost $72.3 million in the quarter, but that was still nearly $13 million less than it lost the same period last year.
A court ruled earlier this year that Vonage had infringed on three of Verizon’s patents, and had to pay damages, plus a portion of royalties on future sales. Its CEO resigned in April, and a judge on May 7 denied the company a new trial. Vonage’s interim CEO, Jeffrey Citron, told the Times that it is nearly finished with “workaround technology” that will allow it to remain in business without using the Verizon-held patents.