Vonage 2010 Annual Report Download - page 42

QUARTERLY RESULTS OF OPERATIONS
T
he following table sets forth quarterly statement of operations data. We derived this data from our unaudited consolidated finan
-
cial statements, which we believe have been prepared on substantiall
y
the same basis as our audited consolidated financial statements
.
T
he operating results in any quarter are not necessarily indicative of the results that may be expected for any future period
.
For the
Q
uarter Ende
d
(
dollars in thousands, except operatin
g
data
)
Mar 31
,
2
009
Jun 30
,
2009
S
e
p
30
,
2
009
Dec 31
,
2
009
Mar 31
,
2
0
1
0
J
un 30
,
20
1
0
S
e
p
30
,
2
0
1
0
Dec 31
,
2
0
1
0
R
evenue
:
T
elephon
y
services $ 215,643 $ 214,709 $ 216,085 $ 218,411 $ 224,527 $ 221,704 $ 212,135 $ 214,56
8
Customer equipment and shipping 8,362 5,319 5,420 5,131 3,424 3,637 1,991 3,056
224
,
005 220
,
028 221
,
505 223
,
542 227
,
951 225
,
341 214
,
126 217
,
62
4
O
perating expenses
:
D
irect cost of telephon
y
services (1) 51,751 51,480 52,044 58,278 62,495 62,969 60,263 58,06
7
D
irect cost of
g
oods sold 20,512 16,179 17,727 17,070 16,647 14,053 13,214 12,051
S
ellin
g
,
g
eneral and administrative 68,051 71,327 63,187 62,891 60,787 60,768 58,908 58,523
M
ar
k
et
i
ng 65,695 52,144 57,393 52,758 49,240 49,324 49,254 50,35
2
D
eprec
i
at
i
on an
d
amort
i
zat
i
on 12,896 13,848 12,881 13,766 13,768 13,929 12,649 12,72
7
218
,
905 204
,
978 203
,
232 204
,
763 202
,
937 201
,
043 194
,
288 191
,
720
I
ncome
f
rom operations 5,100 15,050 18,273 18,779 25,014 24,298 19,838 25,90
4
O
ther income (expense):
I
nterest
i
ncome 110 60 58 49 53 173 154 13
9
I
nterest ex
p
ense
(
13,542
)(
13,679
)(
13,690
)(
13,281
)(
13,211
)(
12,423
)(
11,569
)(
11,338
)
C
han
g
e in fair value of embedded
f
eatures within notes payable and
stock warrant 12,970 1,150
(
62,998
)(
1,055
)
835
(
8,241
)(
62,150
)(
29,782
)
Gain (loss) on early extinguishment of
d
ebt — — 3,816 225 1,038 (3,985) (1,545) (26,531)
O
ther, net 801 5 15 22 103 (43) (19) (59)
339 (12,464) (72,799) (14,040) (11,182) (24,519) (75,129) (67,571
)
I
ncome (loss) before income tax benefit
(expense) 5,439 2,586 (54,526) 4,739 13,832 (221) (55,291) (41,667)
I
ncome tax benefit
(
ex
p
ense
)(
168
)(
301
)(
29
)(
338
)
136
(
341
)(
91
)(
22
)
Net income
(
loss
)$
5,271
$
2,285
$(
54,555
)$
4,401
$
13,968
$(
562
)$ (
55,382
)$ (
41,689
)
Net income
(
loss
)p
er common share:
B
asic
$
0.03
$
0.01
$(
0.33
)$
0.02
$
0.07
$(
0.00
)$ (
0.26
)$ (
0.19
)
D
iluted
$(
0.03
)$
0.01
$(
0.33
)$
0.02
$
0.06
$(
0.00
)$ (
0.26
)$ (
0.19
)
W
ei
g
hted-avera
g
e common shares
o
utstandin
g
:
B
as
i
c 156
,
718 156
,
928 167
,
666 199
,
503 201
,
324 211
,
305 212
,
086 214
,
58
6
Dil
ute
d
218
,
787 218
,
997 167
,
666 203
,
376 221
,
947 211
,
305 212
,
086 214
,
58
6
O
perating Data
:
Gross subscriber line additions 226
,
610 143
,
645 190
,
834 187
,
592 154
,
718 154
,
997 163
,
055 167
,
435
Net subscriber line additions (6,493) (88,643) (50,191) (10,131) (25,779) (5,236) (4,846) 5,848
S
ubscriber lines at end of
p
eriod 2,583,861 2,495,218 2,445,027 2,434,896 2,409,117 2,403,881 2,399,035 2,404,883
A
vera
g
e monthly customer churn 3.1% 3.2% 3.4% 2.8% 2.6% 2.3% 2.4% 2.4
%
A
verage monthly revenue per line $ 28.86 $ 28.88 $ 29.89 $ 30.54 $ 31.37 $ 31.21 $ 29.72 $ 30.20
A
verage mont
hl
yte
l
ep
h
ony serv
i
ces
revenue per line $ 27.78 $ 28.18 $ 29.16 $ 29.84 $ 30.90 $ 30.71 $ 29.45 $ 29.78
A
vera
g
e monthly direct costs of telephony
services
p
er line
$
6.67
$
6.76
$
7.02
$
7.96
$
8.60
$
8.72
$
8.36
$
8.0
6
M
arketin
g
costs per
g
ross subscriber lin
e
a
dditions
$
289.90
$
363.01
$
300.75
$
281.24
$
318.26
$
318.23
$
302.07
$
300.73
E
mployees at end of period 1,413 1,260 1,239 1,225 1,207 1,158 1,145 1,140
(
1
)
Excludes de
p
reciation and amortization of
$
4,760,
$
4,880,
$
4,377, and
$
4,941 for the
q
uarters ended March 31, June 30, Se
p
tember 30
and December 31, 2009, respectivel
y
, and
$
4,981,
$
4,959,
$
4,357, and
$
4,428 for the quarters ended March 31, June 30, September 30
and December 31, 2010, respectivel
y.
3
5