Vonage current situation Essay Example | Topics and Well Written Essays - 250 words

Vonage current situation - Essay Example The company claims that its technology is unique as it allows higher flexibility, more features, low cost and ease in operation and size. It has reached higher number of customers due to announcement of free unlimited calling to landline phones in all cities and locations in more than 60 countries. It also provides important facilities like call waiting and call forwarding at an affordable price. It is in touch with all the customers of different nations through web and it connects to people in USA through national retailers like Best Buy and Wal-Mart Stores Inc. Recently it launched Vonage Mobile which is its first mobile calling service and it is considered to be a free downloadable service that enables low cost international calling through cellular network or Wi-Fi. Vonage Holdings Corp. has its headquarter in Holmdel, New Jersey. Its financial status has been improved considerably relative to previous year. Though its operating revenue recorded for the second quarter i.e. April-June 2009 was lesser ($222 million) than that recorded in second quarter of 2008 ($227.5 million), it recorded a net profit of $2.28 million in 2009 compared to a net loss of $6.88 million in 2008. This is due to reduction in operating expenses in 2009. The average monthly direct costs of telephony services per line was reduced to $6.76 in 2008 from $7.22 in 2009 resulting in reduction in operating expenditure which in turn resulted in higher net profit. Vonage has gone to public in May 2006 though IPO for raising $250 million and registered as public company with New York Stock Exchange. Around 13.5% of its shares were sold to the public and 60 % of its shares were retained with the directors of the company. It was quoted at $1.76 on 7th October 2009. Its 52 week high and low values were $2.63 and $0.31 respectively which indicate that the