John Paczkowski

Recent Posts by John Paczkowski

Vonage's Technical Workaround for AT&T Patent: $39 Million Over 5 Years

About the best thing to be said about Vonage’s third quarter was that it was an improvement over the second. Which isn’t saying much–especially since the $161.8 million loss the company reported was more than double that of a year ago, weighed down by the legal costs of a pair of major patent disputes.

Still, quarterly revenue did grow to $211 million from $162 million, a bit ahead of the Street’s estimate of $210 million. And Vonage signed up some 78,000 new customers, though customer loyalty remains a problem. Churn–the percentage of subscribers who cancel service–rose to 3% from 2.5% in the prior quarter.

Best of all, Vonage has settled another of the patent-infringement lawsuits against it–this one with AT&T. Under the terms of the agreement, Vonage will pay the telecom $39 million over five years. Not exactly a pittance, but certainly less than the $80 million Vonage paid to settle its dispute with Sprint Nextel and a hell of a lot less than the $120 million it may end up forking over to Verizon.

Vonage’s long-suffering investors reacted well to the settlement, sending shares in the company up 16% to $2.38.


Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

Latest Video

View all videos »

Search »

I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik