Vonage Holdings Corp., the company whose Internet phone business model has contributed to a precipitous decline in traditional residential telephone service, reported a record $22 million profit in the second quarter.
It was Vonages second consecutive record profit after having posted $21 million in net income in the first quarter.
The company also announced completing debt refinancing in a move that will yield annual savings of $43 million over last year.
We generated record high financial results while improving our core value proposition and laying the foundation for future growth,” Vonage CEO Marc Lefar said.
But revenues declined about $7 million over the same period a year ago to $218 million. Vonage attributed the dip in revenues to a $3 million decline in deferred revenues related to discontinuation of activation fees and lower customer equipment and shipping revenue.”
In the quarter, Vonage also lost 10,568 subscriber lines to end the month of June with 2.397 million lines.
As of June 30, 2011, Vonage had cash, cash equivalents and restricted cash of $70 million.
Last month, Vonage announced completing the refinancing of its term loan. The company obtained a new $120 million loan through a group of commercial banks, led by JP Morgan.