Vonage 2015 Annual Report Download

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2015
ANNUAL
REPORT

Table of contents

  • Page 1
    2015 ANNUAL REPORT

  • Page 2

  • Page 3
    ... or organization) 11-3547680 (I.R.S. Employer Identification No.) 23 Main Street, Holmdel, New Jersey (Address of principal executive offices) 07733 (Zip Code) Registrant's telephone number, including area code: (732) 528-2600 Securities registered pursuant to Section 12(b) of the Act: Title of...

  • Page 4

  • Page 5
    ... and Related Transactions, and Director Independence Principal Accountant Fees and Services Exhibits, Financial Statement Schedules Signatures Index to Financial Statements 2 9 17 18 19 21 22 24 33 45 46 46 46 47 48 48 48 48 48 49 54 F-1 FORWARD-LOOKING STATEMENTS VONAGE ANNUAL REPORT 2015

  • Page 6
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  • Page 7
    ... in the unified communications market; our ability to adapt to rapid changes in the market for voice and messaging services; our ability to retain customers and attract new customers; the risk associated with developing and maintaining effective internal sales teams; the risk associated with...

  • Page 8
    ...a low-cost and feature-rich alternative to services offered by telecom, cable, and international calling card providers. With our Vonage World product, we have successfully grown our international calling customer base in multiple ethnic markets. To increase the visibility of our long distance plans...

  • Page 9
    ... features provide caller ID as if the user were calling from their office. Additional features include the ability to update account profiles, manage devices, and contact call logs directly from their mobile devices. We also offer virtual extensions, which connects employees to a business phone...

  • Page 10
    ... limits. We have two primary consumer services offerings: Vonage World and Vonage North America. For a flat monthly fee, Vonage World customer plans include unlimited domestic calling (U.S., Canada, and Puerto Rico) and unlimited calling to landline phones in more than 60 countries, including India...

  • Page 11
    ... customer acquisition cost. Customer Support Consumer Services. We offer our customers support 24 hours a day, seven days a week through both our comprehensive online account management website and our toll free number. Many customers use our self-service website when they have a question or problem...

  • Page 12
    ... price for the phone service that may be significantly below ours. In addition, such competitors may in the future require new customers or existing customers making changes to their service to purchase voice services when purchasing high speed Internet access. Certain traditional phone companies...

  • Page 13
    ...Some consumers use wireless phones, instead of VoIP phones, as a replacement for a wireline phone. Also, wireless phone companies increasingly are providing wireless broadband Internet access to their customers. As wireless providers offer more minutes at lower prices and other services that improve...

  • Page 14
    ...address www.vonage.com. References to our website are provided as a convenience, and the information contained on our website is not included as a part of, or incorporated by reference into, this Annual Report on Form 10-K. Other than an investor's own Internet access charges, we make available free...

  • Page 15
    ... costs without commensurate price increases. In connection with our emphasis on the international long distance market for consumer customers, we face competition from lowcost international calling cards, digital calling cards and VoIP providers in addition to traditional telephone companies, cable...

  • Page 16
    ... business customers by average monthly revenue churn. Competition from traditional telephone companies, cable companies, wireless companies, alternative communications providers, low-cost international calling cards, disruptive technologies, general economic conditions, and our ability to activate...

  • Page 17
    ...delayed in activating new customers and may lose these customers. While we believe that relations with our current third party providers are good, and we have contracts in place with these vendors, there can be no guarantee that these third party providers will be able 11 VONAGE ANNUAL REPORT 2015

  • Page 18
    ...amount of data transferred and processed, the number of locations where our service is being used, and the volume of communications over our networks to continue to expand. To address 12 VONAGE ANNUAL REPORT 2015 this growth, we will need to scale our systems and customer services organization. Our...

  • Page 19
    ... we may incur additional costs, including costs to increase security, or be required to credit significant amounts to customers. 13 VONAGE ANNUAL REPORT 2015 Third parties also have used our communications services without paying, including by submitting fraudulent credit card information. This has...

  • Page 20
    ...both our comprehensive online account management website and our toll free number. Our customer support is currently provided via United States based employees as well as third party partners located in the United States, Philippines, Costa Rica, Chile, Mexico, and India. We offer support in English...

  • Page 21
    ... increase our costs or impact our product offerings. In the United States, Canada, and United Kingdom, we are not a regulated telecommunications business. Our services are also in use in countries outside of the United States, Canada, and the United Kingdom, including countries where providing VoIP...

  • Page 22
    ... assistance services offered by traditional telephone companies. Our customers cannot accept collect calls. Our customers cannot call premium-rate telephone numbers such as 1-900 numbers and 976 numbers. > pay dividends and other distributions. Under the 2015 Credit Facility, we are required to...

  • Page 23
    ... India where regulatory authorities have been petitioned by local providers to consider termination rate increases. As we attract additional international long distance callers, we will be more affected by these increases to the extent that we are unable to offset such costs by passing through price...

  • Page 24
    ... of our offices and locations: Location Holmdel, New Jersey New York, New York Dallas, Texas...United Kingdom Tel Aviv, Israel Business Use Corporate Headquarters, Network Operations, Customer Services, Sales and Marketing, Administration Sales and Marketing Sales and Marketing Sales and Marketing...

  • Page 25
    ... VONAGE ANNUAL REPORT 2015 "RPost") filed a lawsuit against StrongMail Systems, Inc. ("StrongMail") in the United States District Court for the Eastern District of Texas alleging that StrongMail's products and services, including its electronic mail marketing services, are covered by United States...

  • Page 26
    ... by VoIP providers to inform consideration of the NPRM. Direct access to telephone numbers would facilitate IP to IP interconnection, which may allow VoIP providers to provide higher quality, lower cost services, promote the deployment of innovative new voice services, and experience reductions in...

  • Page 27
    ..., we did not collect or remit state or municipal taxes (such as sales, excise, utility, use, and ad valorem taxes), fees or surcharges ("Taxes") on the charges to our customers for our services, except that we historically complied with the New Jersey sales tax. We have received inquiries or demands...

  • Page 28
    ...the "Securities Act") or the Exchange Act, except to the extent we specifically request that such information be treated as soliciting material or specifically incorporate such information by reference into a document filed under the Securities Act or the Exchange Act. 22 VONAGE ANNUAL REPORT 2015

  • Page 29
    ... of market conditions, the trading price of the stock and will vary based on available capital resources and other financial and operational performance, market conditions, securities law limitations, and other factors. Repurchases may be made in the open market or through private transactions...

  • Page 30
    ... performance. You should read this information together with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes included elsewhere in this Annual Report on Form 10-K. 24 VONAGE ANNUAL REPORT 2015

  • Page 31
    ..., except per share amounts) Statement of Operations Data: Total revenues Operating Expenses: Cost of services (4) (5) Cost of goods sold Sales and marketing (5) Engineering and... 895,072 $ 868,854 $ 829,067 $ 849,114 $ 870,323 2015 (1) 2014 (2) 2013 (3) 2012 2011 25 VONAGE ANNUAL REPORT 2015

  • Page 32
    ... 2011 December 31, (dollars in thousands) Balance Sheet Data: Cash, cash equivalents and marketable securities Property and equipment, net Goodwill and intangible assets, net Total deferred tax assets, including current portion, net Restricted cash Total assets Total notes payable and indebtedness...

  • Page 33
    ...a low-cost and feature-rich alternative to services offered by telecom, cable, and international calling card providers. With our Vonage World product, we have successfully grown our international calling customer base in multiple ethnic markets. To increase the visibility of our long distance plans...

  • Page 34
    ... calling cards and VoIP providers in addition to traditional telephone companies, cable companies, and wireless companies, each of which may implement promotional pricing targeting international long distance callers. Broadband adoption. The number of United States households with broadband Internet...

  • Page 35
    ... promotional pricing targeting international long distance callers, marketplace perception of our services, and our ability to provide high quality customer care and network quality and add future innovative products and services. Customer churn differs from our previously reported average monthly...

  • Page 36
    ... our customers under our service plans. We also offer consumer fax service, virtual phone numbers, toll free numbers and other services, and charge an additional monthly fee for each service. We automatically charge these fees to our customers' credit cards, debit cards, or electronic check payments...

  • Page 37
    ... provider, we must pay other telecommunications providers to process our local number portability requests. The cost of complying with FCC regulations regarding VoIP emergency services, which require us to provide enhanced emergency dialing capabilities to transmit 911 calls for our customers. Taxes...

  • Page 38
    ... statement of income for the periods indicated: For the Years Ended December 31, 2015 Revenues Operating Expenses: Cost of services (excluding depreciation and amortization) Cost of goods sold Sales and marketing Engineering and development General and administrative Depreciation and amortization...

  • Page 39
    ... and restructuring the pricing offers. Cost of services. The increase in cost of service of $30,385, or 13%, was primarily driven by higher technical care costs and network operations cost in support of growth in Business customers including the addition of Telesphere, Simple Signal, and iCore and...

  • Page 40
    ..., Simple Signal, and iCore and incremental stock compensation of $6,500, partially offset by the elimination of our international growth initiative to focus on our more profitable business customers of $5,000 and lower legal fees of $4,500. 2015 $ 109,153 $ 2014 98,780 $ 2013 83,107 Dollar Change...

  • Page 41
    ... Attributable to Vonage The effective tax rate is calculated by dividing income tax expense by income before income tax expense. As of December 31, 2015, we had net operating loss carry forwards for United States federal and state tax purposes, including the NOLs of iCore, Simple Signal, Telesphere...

  • Page 42
    .... The loss from discontinued operations attributable to Vonage decreased by $7,061, or 75%. The loss from 2015 was due to $500 of costs associated with the wind down of our Brazilian operations in the first quarter of 2015 related to contract terminations and severance-related expenses, a loss on...

  • Page 43
    ... be expected for any future period. For the quarter ended (dollars in thousands, except operating data) Total revenues Operating expenses: Cost of services (1) (2) Cost of goods sold Sales and marketing (2) Engineering and development (2) General and administrative (2) Depreciation and amortization...

  • Page 44
    ... Simple Signal was acquired on April 1, 2015 for $25,250, reduced by $198 of working capital shortfall as of the closing date and increased by $526 for the increase in value of the 1,111 shares of Vonage common stock from the signing date to the closing date, resulting in a total acquisition cost...

  • Page 45
    ..., and MUFG Union Bank, N.A. JPMorgan Chase Bank, N.A. was a party to the agreement as administrative agent, Citizens Bank, N.A. as syndication agent, and Silicon Valley Bank and SunTrust Bank as documentation agents. J.P. Morgan Securities LLC and Citizens Bank, > 39 VONAGE ANNUAL REPORT 2015

  • Page 46
    ...with the unamortized fees of $670 in connection with the 2011 Credit Facility, to interest expense over the life of the debt using the effective interest method. State and Local Sales Taxes We also have contingent liabilities for state and local sales taxes. As of December 31, 2015, we had a reserve...

  • Page 47
    online customer service, and customer management platforms. For 2016, we believe our capital and software expenditures will be in the approximately $38,000. This number is net of Tenant Improvement capital dollars we are investing in our Holmdel, New Jersey headquarters which are being refunded by ...

  • Page 48
    ... who will provide local inbound services, customer care services, carrier operation, networks and telephone related services, license patents to us, provide marketing infrastructure and services, and partner with us in international operations, provide customer caller ID, and process LNP orders. In...

  • Page 49
    ...directly to customers for replacement devices, or for upgrading their device at the time of customer sign-up for which we charge an additional fee. In addition, customer equipment and shipping revenues include revenues from the sale of VoIP telephones in order to access our small and medium business...

  • Page 50
    ... including costs for employee, lease, and 44 VONAGE ANNUAL REPORT 2015 contract terminations, facility closing or other exit activities. Additionally, these costs include expenses directly related to integrating and reorganizing acquired businesses and include items such as employee retention costs...

  • Page 51
    ... and related disclosures. In May 2014, FASB issued ASU 2014-09, "Revenue from Contracts with Customers". This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the...

  • Page 52
    ..., 2015. These businesses represent 6% and 4% of our total assets and revenues, respectively, as of December 31, 2015. Our management plans to fully integrate the operations of these businesses into its assessment of the effectiveness of our internal control over financial reporting in 2016. Based on...

  • Page 53
    ... financial reporting. /s/ ALAN MASAREK /s/ DAVID PEARSON David T. Pearson Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer and Duly Authorized Officer) Alan Masarek Director, Chief Executive Officer ITEM 9B. Other Information None. 47 VONAGE ANNUAL REPORT 2015

  • Page 54
    ...Code of Ethics applicable to our chief financial officer and other employees in our finance organization. The Vonage Code of Conduct and Vonage Finance Code of Ethics are posted in the Investor Relations section of our website, www.vonage.com. We will provide you with print copies of our codes free...

  • Page 55
    ... such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein. /s/ BDO USA, LLP Woodbridge, New Jersey February 12, 2016 49 VONAGE ANNUAL REPORT 2015

  • Page 56
    ...represent change in valuation allowance. Represents reversal of estimated valuation allowance on Vocalocity's deferred tax assets at date of acquisition. Represents estimated valuation allowance on Vocalocity's deferred tax assets at date of acquisition. (3) Exhibits. 50 VONAGE ANNUAL REPORT 2015

  • Page 57
    ... Agreement by and between Vonage Holdings Corp. and Alan Masarek (31)* Amendment to Route Management Services Addendum (the "Addendum"), by and between Vonage America Inc., a wholly-owned subsidiary of Vonage Holdings Corp., and Tata Communications (America) Inc., effective as of December 23, 2015...

  • Page 58
    ...filed on August 4, 2011. Incorporated by reference to Vonage Holding Corp.'s Quarterly Report on Form 10-Q (File No. 001-32887) filed on July 30, 2015. Incorporated by reference to Vonage Holding Corp.'s Current Report on Form 8-K (File No. 001-32887) filed on June 3, 2015. VONAGE ANNUAL REPORT 2015

  • Page 59
    ... of 1934, as amended. Management contract or compensatory plan or arrangement. (b) Exhibits Filed Herewith Refer to (a)(3) above. (c) Financial Statement Schedule Report of Independent Registered Public Accounting Firm Schedule II - Valuation and Qualifying Accounts. 53 VONAGE ANNUAL REPORT 2015

  • Page 60
    ... of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Holmdel, State of New Jersey, on February 12, 2016. VONAGE HOLDINGS CORP. Dated: February 12, 2016 By...

  • Page 61
    ... STATEMENTS Page Report of Independent Registered Public Accounting Firm-BDO USA, LLP Report of Independent Registered Public Accounting Firm-BDO USA, LLP Consolidated Balance Sheets as of December 31, 2015 and 2014 Consolidated Statements of Income for the years ended December 31, 2015, 2014 and...

  • Page 62
    ... with the standards of the Public Company Accounting Oversight Board (United States), Vonage Holdings Corp.'s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring...

  • Page 63
    ... INDEPENDENT ACCOUNTING FIRM Board of Directors and Stockholders Vonage Holdings Corp. Holmdel, New Jersey REGISTERED PUBLIC We have audited Vonage Holdings Corp.'s (the "Company") internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control...

  • Page 64
    ... $ Marketable securities Accounts receivable, net of allowance of $1,091 and $607, respectively Inventory, net of allowance of $686 and $181, respectively Deferred customer acquisition costs, current Deferred tax assets, current Prepaid expenses and other current assets Total current assets...

  • Page 65
    VONAGE HOLDINGS CORP. CONSOLIDATED STATEMENTS OF INCOME For the years ended December 31, (In thousands, except per share amounts) Total revenues Operating Expenses: Cost of services (excluding depreciation and amortization of $24,868, $19,405, and $14,892, respectively) Cost of goods sold Sales and...

  • Page 66
    ... INCOME For the years ended December 31, (In thousands) Net income Other comprehensive income (loss): Foreign currency translation adjustment Discontinued operations cumulative translation adjustment Unrealized loss on available-for-sale securities Total other comprehensive income (loss...

  • Page 67
    ... current assets Deferred customer acquisition costs Other assets Accounts payable Accrued expenses Deferred revenue Other liabilities Net cash provided by operating activities Cash flows from investing activities: Capital expenditures Purchase of intangible assets Purchase of marketable securities...

  • Page 68
    ...Share-based expense Share-based award activity Common stock repurchases Acquisition of business Foreign currency translation adjustment Unrealized loss on availablefor-sale securities Net income (loss) Balance at December 31, 2015 Common Stock $ 230 9 Additional... F-8 VONAGE ANNUAL REPORT 2015

  • Page 69
    ... revenues from the sale of VoIP telephones in order to access our small and medium business services. Customer equipment and shipping revenues also include the fees that customers are charged for shipping their customer > We base our estimates on historical experience, available market information...

  • Page 70
    ... parties in order to provide services. These costs include access and interconnection charges that we pay to other companies to terminate domestic and international phone calls on the public switched telephone network. In addition, these costs include the cost to lease phone numbers, to co-locate...

  • Page 71
    ... and customer care automation tools, in accordance with FASB ASC 350-40, "Internal-Use Software". Computer software is stated at cost less accumulated amortization and the estimated useful life is two to five years. Goodwill Goodwill acquired in the acquisition of a business is accounted for based...

  • Page 72
    ...to United States dollars using month-end rates of exchange for assets and liabilities, and average rates of exchange for revenues, costs, and expenses. Translation gains and losses are deferred and recorded in accumulated other comprehensive income as a component of stockholders' equity. Share-Based...

  • Page 73
    ... as non-current in a classified statement of financial position. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Earlier application is permitted for all entities as of F-13 VONAGE ANNUAL REPORT 2015 the beginning...

  • Page 74
    ... and related disclosures. In May 2014, FASB issued ASU 2014-09, "Revenue from Contracts with Customers". This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the...

  • Page 75
    ... Debt related costs, net Restricted cash December 31, December 31, 2015 2014 5,044 $ 3,640 $ (2,991) (2,457) $ 2,053 $ 1,183 Letter of credit-lease deposits Cash reserves Restricted cash December 31, 2015 2,498 $ $ 89 2,587 December 31, 2014 3,311 $ $ 94 3,405 F-15 VONAGE ANNUAL REPORT 2015

  • Page 76
    ... 9,771 1,883 2,178 133 1,267 207 84,322 $ $ Foreign currency translation adjustment Unrealized loss on available-for-sale securities Accumulated other comprehensive (loss) income December 31, December 31, 2015 2014 (1,656) $ (3,123) $ (21) (8) (1,677) $ (3,131) $ F-16 VONAGE ANNUAL REPORT 2015

  • Page 77
    ... customer relationships, developed technology, trade names and non-compete agreements identified in the acquisition of businesses. In addition, includes patents and trademarks we have purchased and licensed, including in connection with the settlement of litigation. F-17 VONAGE ANNUAL REPORT 2015

  • Page 78
    ... Statement Account Information Amounts included in revenues For the years ended December 31, 2015 USF fees Disconnect fee, net of credits and bad debt Initial activation fees Customer equipment rental Customer equipment fees Equipment recovery fees Shipping and handling fees Amounts included in cost...

  • Page 79
    ... (109) Note 5. Income Taxes The components of income from continuing operations before income tax expense are as follows: For the years ended December 31, 2015 United States Foreign $ $ 38,115 5,338 43,453 $ $ 2014 44,044 7,422 51,466 $ $ 2013 39,650 7,971 47,621 F-19 VONAGE ANNUAL REPORT 2015

  • Page 80
    ...realized prior to their expiration. Accordingly, we released the related valuation allowance against our United States federal and Canada net deferred tax assets, and a portion of the allowance against F-20 VONAGE ANNUAL REPORT 2015 our state net deferred tax assets as certain NOLs may expire prior...

  • Page 81
    ...United States federal and state NOLs of $16,629 represent excess tax benefits from the exercise of share based awards which will be recorded in additional paid-in capital when realized. We had NOLs for United Kingdom tax purposes of $45,159 with no expiration date. F-21 VONAGE ANNUAL REPORT 2015

  • Page 82
    ... 2015 Credit Facility will be used for general corporate purposes. We also incurred fees of $2,007 in connection with the 2015 Credit Facility, of which $602 was allocated to the term note and $1,405 was allocated to the revolving credit facility. The unamortized F-22 VONAGE ANNUAL REPORT 2015 fees...

  • Page 83
    ... the unamortized fees of $668 in connection with the 2013 Credit Facility, to interest expense over the life of the debt using the effective interest method. We used $20,000 and $67,000 from our 2014 revolving credit facility in connection with the acquisitions of Simple Signal on April 1, 2015 and...

  • Page 84
    ... used for general corporate purposes. We also incurred $2,009 of fees in connection with the 2013 Credit Facility, which was amortized, along with the pre-existing unamortized fees of $670 in connection with the 2011 Credit Facility, to interest expense over the life of the debt using the effective...

  • Page 85
    ...the highest priority to Level 1 inputs. > > Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. Level 3: Unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The...

  • Page 86
    ... of the Company's common stock issued after that date, but will only be activated if certain triggering events under the Preservation Plan occur. Under the Preservation Plan, preferred share purchase rights will work to impose significant dilution upon any person or group which acquires beneficial...

  • Page 87
    ..., including executive officers, outside consultants, and non-employee directors. Vesting periods for share-based awards are generally three or four years for both plans. Awards granted under each plan expire in five or ten years from the effective date of grant. As of April 2010, the Company began...

  • Page 88
    ... stock, performance units, annual awards, and other awards based on, or related to, shares of our common stock. Options awarded under our 2015 Equity Incentive Plan may be non-qualified stock options or may qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986...

  • Page 89
    ... using the ratable single-option approach on an accrual basis and are amortized using an accelerated amortization schedule. Our current policy is to issue new shares to settle the exercise of stock options and prospectively, the vesting of restricted stock units. F-29 VONAGE ANNUAL REPORT 2015

  • Page 90
    ... lease when it becomes effective on September 1, 2017. Operating Leases We have entered into various non-cancelable operating lease agreements for certain of our existing office and telecommunications co-location space in the United States and for international subsidiaries with original lease...

  • Page 91
    ... who will provide local inbound services, customer care services, carrier operation, networks and telephone related services, license patents to us, provide marketing infrastructure and services, and partner with us in international operations, provide customer caller ID, and process LNP orders. In...

  • Page 92
    ... by VoIP providers to inform consideration of the NPRM. Direct access to telephone numbers would facilitate IP to IP interconnection, which may allow VoIP providers to provide higher quality, lower cost services, promote the deployment of innovative new voice services, and experience reductions in...

  • Page 93
    ..., we did not collect or remit state or municipal taxes (such as sales, excise, utility, use, and ad valorem taxes), fees or surcharges ("Taxes") on the charges to our customers for our services, except that we historically complied with the New Jersey sales tax. We have received inquiries or demands...

  • Page 94
    .... The customer F-34 VONAGE ANNUAL REPORT 2015 relationships are being amortized on an accelerated basis over an estimated useful life of ten years; developed technology is being amortized on an accelerated basis over an estimated useful life of eight years; and the non-compete agreements and trade...

  • Page 95
    ... provides cloud-based unified communications and collaboration services, delivering voice, video, and mobile communications solutions to business customers. Simple Signal is a natural complement to our expanding UCaaS business. We acquired Simple Signal for $25,578, including 1,111 shares of Vonage...

  • Page 96
    ... any portion of this goodwill to be deductible for tax purposes. The goodwill attributable to the acquisition has been recorded as a non-current asset F-36 VONAGE ANNUAL REPORT 2015 and is not amortized, but is subject to an annual review for impairment. We believe the factors that contributed to...

  • Page 97
    ...quality of service (QoS) management and security increasingly required by businesses utilizing extensive UCaaS features. We acquired Telesphere for $114,330, including 6,825 shares of Vonage common stock (which shares had an aggregate value of approximately $22,727 based upon the closing stock price...

  • Page 98
    ... provider of cloud-based communication services to small and medium businesses (SMB). The acquisition of Vocalocity positioned Vonage as a leader in the SMB hosted VoIP market. Subsequent to the acquisition, SMB and small office, home office (SOHO) services previously offered by Vonage were offered...

  • Page 99
    ... recorded as a non-current asset and is not amortized, but is subject to an annual review for impairment. We believe the factors that contributed to goodwill include synergies that are specific to our consolidated business, the acquisition of a talented workforce that provides us expertise in small...

  • Page 100
    ...for the year ended 2015; an increase in interest expense of $1,790 and $3,060 for the years ended 2015 and 2014, respectively associated with borrowings under our revolving credit facility. > The Company recorded revenue of $34,243 and net loss of $2,385 attributable to iCore and Simple Signal for...

  • Page 101
    ...an enterprise's business segments and related disclosures about its products, services, geographic areas and major customers. Under ASC 280, the method for determining what information to report is based upon the way management organizes the operating segments within the Company for making operating...

  • Page 102
    ... information for 2015 and 2014: For the Quarter Ended March 31, Year Ended 2015 Revenue Income from continuing operations Loss from discontinued operations attributable to Vonage Net income attributable to Vonage Net income attributable to Vonage per common share: Basic net income per share Basic...

  • Page 103
    ... affect the registrant's ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 12, 2016...

  • Page 104
    ... affect the registrant's ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 12, 2016...

  • Page 105
    ...-Oxley Act of 2002, that the Annual Report of Vonage Holdings Corp. on Form 10-K for the annual period ended December 31, 2015 fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-K fairly presents...

  • Page 106

  • Page 107
    ...'s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, is available to stockholders by calling the Investor Relations Hotline at (732) 365-1328 or online by accessing the Company's Investor Relations website at http://ir.vonage.com. Joe Redling Chief Operating Officer...

  • Page 108
    Vonage 23 Main Street Holmdel, NJ 07733 vonage.com