Vonage Settles with Sprint, New Lease on Life?
posted by MR WAVETHEORY at 10/08/2007 12:55:00 PMVonage (NYSE VG) settled their patent dispute with Sprint (NYSE PCS) undoubtedly because neither of the two are doing particularly well. VG is up about 125% today which is up significantly from $1 when it hit bottom on the Verizon patent news. It's still not smooth sailing for Vonage. Looking at the balance sheet, Vonage has about $400 million in cash. The Sprint settlement is for $80 million which brings cash down to $320 million. If a settlement with Verizon is made for a similar amount, cash will be $240 million. The company is burning around $40 million per quarter so it has about 1.5 years in cash left. Vonage will need to raise money soon, sell, or go BK and be known for its stupid and funny and sometimes odd television commercials.
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