U.S. Dist. Court Judge Claude Hilton signed an injunction against Vonage Holdings Corp. (NYSE: VG) this morning, preventing the VOIP provider from using Verizon Communications Inc. (NYSE: VZ)'s patented technology. Vonage was not granted the 120 day stay that it was seeking while its patent-infringement case goes to appeal. (See Vonage, Verizon Fight to Go Into Late Rounds.)
The judge allowed a proposal by Verizon that would allow Vonage to continue using its patented technology but would prevent Vonage from signing up new customers. The compromise is a small victory for Vonage which will be able to continue serving its 2.2 million existing customers.
Vonage's stock fell $0.25 (6.91%) to $3.37 in trading yesterday in anticipation of the injunction. Investors fear that any unfavorable outcome would keep the VOIP service provider from adding new customers -- and slow its revenues to a crawl. The rapid rate at which Vonage signs up new customers has been one of the few bright spots for the company, only outstripped by its massive financial losses and free-wheeling spending on consumer marketing.
Vonage's financial story is still one for the ages. The company's shares have lost 80 percent of their value since Vonage's IPO of $17 per share. In the past week, research analysts at Citigroup , the bank that underwrote the IPO, downgraded Vonage to sell -- a rare occurrence for an underwriting company. (See Citigroup Analyst Sticks 'Sell' on Vonage.)
The New York Stock Exchange is closed today for Good Friday.
Pete Baldwin, User Rank: Light Beer 12/5/2012 | 3:10:45 PM
re: Vonage Dissed at Injunction Junction Stop presses -- an appeals court has granted Vonage a temporary stay, meaning Vonage can continue signing up new customers for a time.
Pete Baldwin, User Rank: Light Beer 12/5/2012 | 3:10:45 PM
re: Vonage Dissed at Injunction Junction Of the first 4 respondants to our brand new poll about Vonage, not one believes Vonage is going to eventually win its appeal, and three think Vonage will be out of business in a year.
The 'gleaming city on a hill,' Steve Saunders calls it. But who is going to take us from today's NFV componentry to the grand future of a self-driving network? Here's a look at the vendors hoping to make it happen.
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.
During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.
She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.
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