Friday, April 13, 2007
Vonage Holdings Ltd. founder Jeff Citron has taken over the post of chief executive officer after former CEO Mitch Snyder resigned as part of an effort to drastically cut costs.
Vonage also announced it would reduce 2007 marketing costs by $200 million to $110 million.
The reductions could be almost as severe as the order issued by a federal judge last Friday (April 6) in a patent infringement case between Vonage and Verizon Communications Inc. Vonage had been ordered to stop adding new customers while royalties on three Verizon patents were negotiated. An appeals court overturned that ruling.
The cuts could reduce new Vonage customer recruitment almost as much as a court order.
Vonage has been ordered to pay Verizon $58 million in damages and 5.5 percent royalties on three patents. With the announced cuts, telecom analysts began posting "Vonage Death Watch" notices on industry blogs.
By: DocMemory
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