Vonage warned yesterday that it’s troubles with Verizon have it teetering on the edge of bankruptcy, more or less prompting everyone in the world who doesn’t own stock in the company to say “we told you so.” Even as Vonage went public last year, skeptical observers and short sellers have been tearing into the company’s prospects. Until now, Vonage management’s statements have made it sound like they were born with rose-tinted glasses in their mouths.
Since the initial public offering, Vonage’s shares have dropped more than 80 percent. They are locked in a life-or-death patent infringement case against Verizon.
Over at the Motley Fool, Dave Mock greets the news with mock-shock and horror.
Absolutely stunned. That was my reaction to Internet telephony provider Vonageadmitting in its recent 10-K filing that it could be forced into bankruptcy at the behest of legal attacks from the likes of rival Verizon Communications. Who would have thought it could end like this?
We actually dropped Vonage, more or less, from DealBreaker commentary sometime last year. Our graphic--representing Vonage screwed on crack, toast, and in a freefall--was simply too cluttered to keep up with the company's bad news.
Vonage 10-K [SEC]
No Surprise From Vonage [Motley Fool]