said by inteller :

Stick a fork in it, Vonage is done.

said by inteller :

Investors vote with their shares. Don't call investors dumb about the appeals process.

Stick a fork in it, Vonage is done.

said by GOLFnSUN :

Even if Vonage has problems, the chances are much higher they would be taken over by someone else and not just fold up their service.

said by Jim Gurd :

Who would want to buy them with that kind of liability? I expect any buying will be assets only after a Chapter 7 filing.

said by GOLFnSUN :



»finance.yahoo.com/q/bs?s=VG

said by batterup :

I find this interesting, Negative Goodwill.

NEGATIVE GOODWILL arises where the net assets at the date of acquisition, fairly valued, exceed the cost of acquisition. It is reflected on the balance sheet net of other intangible assets. Negative goodwill is recognized as income as follows:

*
To the extent that negative goodwill relates to expected future losses and expenses, it is recognized in the income statement when the future losses and expenses are recognized.
*
The amount of negative goodwill relating to identifiable non-monetary assets (not exceeding the fair values of such acquired assets), is recognized as income on a systematic basis over the remaining useful lives of the identifiable acquired
depreciable/amortizable assets with a maximum of 20 years.
*
The amount of the negative goodwill in excess of the fair values of the acquired identifiable non-monetary assets is recognized as income immediately.
*
The amount of the negative goodwill relating to monetary assets is recognized as income immediately

GOODWILL is that intangible possession which enables a business to continue to earn a profit that is in excess of the normal or basic rate of profit earned by other businesses of similar type. The goodwill of a business may be due to a particularly favorable location, its reputation in the community, or the quality of its employer and employees. The evidence that goodwill exists is the proven ability to earn excess profits.

Goodwill is created on the books of a newly purchased company to the extent that the purchase price of the company is greater than the value of its net tangible assets. There are a number of methods for valuing goodwill: a. Simple Capitalization - The net profit of the business is capitalized to determine the total value of the business. The value of all the tangible assets is subtracted from the total value to establish the value of the intangible assets, or goodwill. b. Excess Earnings - the amount of earnings that are in excess of those normally earned by a similar business are capitalized to determine the value of goodwill. c. Income Tax Method - The past five years net income is averaged and a reasonable expected rate of return for tangible assets and salary requirements are subtracted. The resulting value is then capitalized to arrive at the goodwill value. d. Market Value - The price a willing seller would accept and a willing buyer would pay for goodwill. e. Buy /Sell Agreement - The value of goodwill is established by a formula in the buy/ sell agreement. f. Rule of Thumb - Goodwill is worth one years gross income.

said by GOLFnSUN :

The patent liability of less than a $100 million for a company with $600 million of cash or cash equivalents on hand isn't going to stop a sale. Their assets are worth $789 million.

said by Jim Gurd :

Who would want to buy them with that kind of liability?

said by GOLFnSUN :

Investors have a right to be worried. But not because Vonage is going belly up. I am reasonably sure that Vonage and their VOIP service isn't going to fold, at least not over their current patent issues. But their costs will rise as a result of the current patent problems and that will ultimately make their competitors stronger and will cut into their GROWTH possibilities. And that is why the stock will continue to languish.

Even if Vonage has problems, the chances are much higher they would be taken over by someone else and not just fold up their service.

said by brooklynman4 :

Why they dont just buy if verizon andget over it.

said by Jeffrey :

I'm going to have to ask for clarification here.

said by AnonProxy :

Vonage was selling cheap as it was getting part of it's calls "for free" pushing costs to the local markets.

Now that they will have to pay all costs, the price will go up and there will be NO VALUE in using Vonage over your local telco's pay one price service.

Vonage was crappy but cheap, now vonage will be the crappy and more expensive...will they be worth anything in a year?

said by AnonProxy :

Vonage was selling cheap as it was getting part of it's calls "for free" pushing costs to the local markets.

Now that they will have to pay all costs, the price will go up and there will be NO VALUE in using Vonage over your local telco's pay one price service.

Vonage was crappy but cheap, now vonage will be the crappy and more expensive...will they be worth anything in a year?

said by AnonProxy :

Ever deal with customer support? and now this...good thing or crappy thing?

It's not big bad "verizons" fault that these idiots were working without licensing deals and pushing into small markets to get cheap termination fees.

Face Vonage was and is the old school dotcom model for the millennium . Sell a product cheap because you are either using investor money or are not paying you bills and all the needed licensing fees, then when the SHTF, act like everything is A-OK.

said by AnonProxy :

As stated vonage customer support is crappy. To that end my personal experience with Vonage has been good, save the fact that the whole concept is in danger as they did not seure the needed licensing...sounds crappy again.

Do you need me to type it slower?

said by AnonProxy :

Again all you seem to be able to say is "Verizon fan boy" what are you 12? The point is the total experience is what couts, their cost may be great, their call quality may be great, but if the customer service and billing sucks, then it's not a "good service". If they sell it and then the blame it on "poor ISP" connectivity, well that's a shame but in the end many can't choose their broadband ISP so a graceful exit from the service is important. Getting billed for service 3-6 and even 12 months after canceling the service is not acceptable, it's "crappy"

said by AnonProxy :

Vonage was selling cheap as it was getting part of it's calls "for free" pushing costs to the local markets.

Now that they will have to pay all costs, the price will go up and there will be NO VALUE in using Vonage over your local telco's pay one price service.

Vonage was crappy but cheap, now vonage will be the crappy and more expensive...will they be worth anything in a year?

said by AnonProxy :

Vonage was selling cheap as it was getting part of it's calls "for free" pushing costs to the local markets.

Now that they will have to pay all costs, the price will go up and there will be NO VALUE in using Vonage over your local telco's pay one price service.

Vonage was crappy but cheap, now vonage will be the crappy and more expensive...will they be worth anything in a year?

said by AnonProxy :

And you just asked me what is crappy about Vonage...Hell man you are living the crappy Vonage dream!

said by wardsystems :

The wait on hold was short and the Vonage rep was very helpful when I canceled my account today. Go figure....

said by TechSponge :

Ive been reading this for weeks, so who is going to be the first up to bat to provide more details about the patents infringed? Ive done quick searches but cannot find any technical details about the patents and their functions. What other VoIP providers infringe? Should the Patents be contested? Prior Art?

said by brianiscool :

Just pull the plug already Vonage. It's the end of your VOIP days.