Vonage loss grows to $161.8 million
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Internet phone service Vonage Holdings Corp. reported third-quarter earnings that beat analysts’ estimates, a month after settling patent lawsuits that threatened its existence.
The net loss widened to $161.8 million, or $1.04 a share, from $62.2 million, or 40 cents, a year earlier, the Holmdel, N.J.-based company said. Excluding $133 million in legal costs, the loss narrowed to $16 million, or 10 cents a share. Analysts surveyed by Bloomberg had estimated an adjusted loss of 13 cents.
The company said it was close to reaching a patent settlement with AT&T; Inc. The preliminary terms of the deal would require Vonage to pay $39 million to AT&T; over five years. The companies would drop pending lawsuits against each other.
Vonage, the second-largest U.S. Internet phone provider after cable television carrier Comcast Corp., added 78,000 subscriptions in the quarter.
Vonage shares rose 30 cents, or 14%, to $2.49.
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