RecentlyVonage has been in the new a lot. Everyone's watching, waiting for the other shoe to drop, or a miraculous climb out of the abyss.

Vonage saved by VoIP Inc., for now
One of the most memorable lines in recent cinematic history is when Dr. Evil in Austin Powers utters, “Throw me a fricking bone.” That was the first thought that came to mind when reading about Vonage having found a work around their patent mess, thanks to VoIP Inc., a little VoIP company from Florida.

Verizon recently won its patent infringement battle against Vonage, and unless the Holmdel, NJ-based VOIP company got a stay from the federal court on April 6, it was facing a lights-out type situation. However, this deal with VoIP Inc. - will help Vonage stay open for business at the very least.

According to a 8-K filing by VoIP Inc., it was going to provide Vonage with certain network services, though the filing didn’t really reveal the financial terms. VoIP Inc., has patents and has a subsidiary that provides direct VoIP interconnection facilities with multiple carriers.
[Read Om's full post]

Om speculates, as many have, that this deal might help address some of Vonage's current woes, but then notes the following:

Vonage is delaying filing its annual report pending the federal court’s decision (expected on April 6.) Funny how they were mocking the market for overreacting - Vonage actions since then show that over reaction was justified.

This morning, another friend, Andy Abramson, added this observation:

Vonage Delays Annual Report Filing to SEC
In what can't be a good sign, Vonage has delayed the filing of their annual report. Obviously they are having to look hard at their numbers in light of the Verizon judgement related to patents and how those costs impact the fiscal year's balance sheet.

Om's observation that the market reaction was justified is really the point I'm emphasizing here. This isn't a good sign and I still see Vonage as struggling to hang on. I'm not convinced that the newly announced relationship with VoIP Inc is enough. I think it's too little to late, but I've been one of the more direct detractors when it comes to Vonage's chances.

Time will tell, but delaying the annual report is almost never a good sign.


Technorati Tags: Vonage, annual report, VoIP, fight for life