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Report Date : |
06.05.2013 |
IDENTIFICATION DETAILS
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Name : |
VONAGE HOLDINGS CORPORATION |
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Formerly Known As : |
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Registered Office : |
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Country : |
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Financials (as on) : |
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Date of Incorporation : |
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Com. Reg. No.: |
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Legal Form : |
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Line of Business : |
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No. of Employees : |
983 (for the group) |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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United States |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
ECONOMIC OVERVIEW
The US has the largest and most technologically powerful
economy in the world, with a per capita GDP of $49,800. In this market-oriented
economy, private individuals and business firms make most of the decisions, and
the federal and state governments buy needed goods and services predominantly
in the private marketplace. US business firms enjoy greater flexibility than
their counterparts in Western Europe and Japan in decisions to expand capital
plant, to lay off surplus workers, and to develop new products. At the same
time, they face higher barriers to enter their rivals' home markets than
foreign firms face entering US markets. US firms are at or near the forefront
in technological advances, especially in computers and in medical, aerospace,
and military equipment; their advantage has narrowed since the end of World War
II. The onrush of technology largely explains the gradual development of a
"two-tier labor market" in which those at the bottom lack the
education and the professional/technical skills of those at the top and, more
and more, fail to get comparable pay raises, health insurance coverage, and
other benefits. Since 1975, practically all the gains in household income have
gone to the top 20% of households. Since 1996, dividends and capital gains have
grown faster than wages or any other category of after-tax income. Imported oil
accounts for nearly 55% of US consumption. Crude oil prices doubled between
2001 and 2006, the year home prices peaked; higher gasoline prices ate into
consumers' budgets and many individuals fell behind in their mortgage payments.
Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures
more than doubled in the same period. Besides dampening the housing market,
soaring oil prices caused a drop in the value of the dollar and a deterioration
in the US merchandise trade deficit, which peaked at $840 billion in 2008. The
sub-prime mortgage crisis, falling home prices, investment bank failures, tight
credit, and the global economic downturn pushed the United States into a
recession by mid-2008. GDP contracted until the third quarter of 2009, making
this the deepest and longest downturn since the Great Depression. To help
stabilize financial markets, in October 2008 the US Congress established a $700
billion Troubled Asset Relief Program (TARP). The government used some of these
funds to purchase equity in US banks and industrial corporations, much of which
had been returned to the government by early 2011. In January 2009 the US
Congress passed and President Barack OBAMA signed a bill providing an
additional $787 billion fiscal stimulus to be used over 10 years - two-thirds
on additional spending and one-third on tax cuts - to create jobs and to help
the economy recover. In 2010 and 2011, the federal budget deficit reached
nearly 9% of GDP. In 2012 the federal government reduced the growth of spending
and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required
major shifts in national resources from civilian to military purposes and
contributed to the growth of the budget deficit and public debt. Through 2011,
the direct costs of the wars totaled nearly $900 billion, according to US
government figures. US revenues from taxes and other sources are lower, as a
percentage of GDP, than those of most other countries. In March 2010, President
OBAMA signed into law the Patient Protection and Affordable Care Act, a health
insurance reform that will extend coverage to an additional 32 million American
citizens by 2016, through private health insurance for the general population
and Medicaid for the impoverished. Total spending on health care - public plus
private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the
president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act,
a law designed to promote financial stability by protecting consumers from
financial abuses, ending taxpayer bailouts of financial firms, dealing with
troubled banks that are "too big to fail," and improving
accountability and transparency in the financial system - in particular, by
requiring certain financial derivatives to be traded in markets that are
subject to government regulation and oversight. In December 2012, the Federal
Reserve Board announced plans to purchase $85 billion per month of mortgage-backed
and Treasury securities in an effort to hold down long-term interest rates, and
to keep short term rates near zero until unemployment drops to 6.5% from the
December rate of 7.8%, or until inflation rises above 2.5%. Long-term problems
include stagnation of wages for lower-income families, inadequate investment in
deteriorating infrastructure, rapidly rising medical and pension costs of an
aging population, energy shortages, and sizable current account and budget
deficits - including significant budget shortages for state governments.
Source
: CIA
Company name: VONAGE HOLDINGS CORPORATION
Address:
Telephone: +1
732-528-2600
Fax: +1 732-834-0189
Website: www.vonage.com
Corporate ID#: 3230864
State: Delaware
Judicial form: Public Company (NYSE = VG)
Date incorporated: 05-17-2000
Stock: 212,021,239
shares (as of 04-30-2013)
Value: USD
0.001= par value
Name of manager: Marc
P. LEFAR
Business:
Vonage Holdings Corp. provides communications services that connect
individuals through cloud-connected devices worldwide.
The company offers voice and messaging services through session
initiation protocol based voice over Internet protocol network.
It provides home telephone replacement services to residential, small
office, and home office customers through various service plans with a range of
basic features, including call waiting, caller ID with name, call forwarding,
and voicemail. The company’s primary residential product includes Vonage World
plan, which offers local calling; calling to landline phones in various cities
and locations in approximately 60 countries; and calling to mobile phones. It
also offers area code selection, virtual phone number, and personalized
Web-enabled voicemail services; mobile and other connected device services
comprising Vonage Mobile, a mobile application
that provides free calling and messaging between users who have the
application, as well as international calling to approximately 200 countries to
other phone; and devices that facilitate customers to use the Internet
connection for their computers and telephones at the same time.
As of February 19, 2013, the company had approximately 2.4 million
subscriber lines.
Vonage Holdings Corp. was incorporated in 2000 and is headquartered in
Holmdel, New Jersey.
Staff: 983 (for the group)
Operations & branches:
At the headquarters, we
find the corporate headquarters, on lease.
Shareholders:
The Company is listed with the NYSE under symbol VG.
62% of the stock is held by institutional and mutual fund owners
including:
|
Wellington Management
Company, LLP |
9.26% |
|
Vanguard Group, Inc.
(The) |
5.10% |
|
Vanguard Explorer Fund,
Inc. |
4.71% |
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LSV Asset Management |
4.26% |
|
Raging Capital Management,
LLC |
3.73% |
Management:
Marc LEFAR is the CEO.
He has been the Chief Executive Officer of Vonage
Holdings Corporation since July 29, 2008. Mr. Lefar serves as Senior Advisor of
WWC Capital Group, LLC. He founded Marketing Insights. He served as the Chief
Marketing Officer of AT&T Mobility LLC (Formerly, Cingular Wireless LLC).
He was responsible for all aspects of AT&T
Mobility's brand and marketing direction and execution. He directed marketing
strategy and programs, brand development, advertising, ... service packages and offerings, new product
development, market research, and customer communications. He was with AT&T
Mobility from 2003 to 2007. He served as Chief Marketing Officer of Wireless at
AT&T Inc. since January 15, 2007. Mr. Lefar began his career at Procter
& Gamble initially in finance then brand management, helping to drive the
success of well-known brands including Jif peanut butter, Duncan Hines baking
mixes, and Crisco cooking oil. During the 18 years, Mr. Lefar has developed a
unique blend of marketing, financial, and operational expertise. He has
extensive experience in the telecommunications industry, beginning with GTE
Wireless, where he held local and regional management leadership positions
before becoming Vice President of Marketing. In that role, he was responsible
for strategy development, voice and data product management, advertising,
pricing, and promotion. After GTE's merger with Verizon Wireless, he served as
Vice President of Wireless Internet, Data Services and E-enablement, leading
the development and launch of Verizon's first national Internet service.
His organization led the evaluation of new applications
and managed the relationship with strategic data partners. He was also
responsible for the design and functionality of the on-line retail store and
customer self-service offerings. Mr. Lefar joined Cable & Wireless Global
as Chief Marketing Officer where he was responsible for marketing strategy and
plan implementation. He served as an Executive Vice President of Marketing and
Value-Added Services at Cable & Wireless Global. He played a lead role in
its growth strategies and the resulting acquisitions of Digital Island and
Exodus Communications. Mr. Lefar served as Senior Advisor to Outcome Capital,
LLC, an investment banking group in Washington D.C.
He has been a Director of Vonage Holdings
Corporation since August 2008.
He serves as a Member of Advisory Board at Air2web
Inc. and Local Solution's Network.
He has been a Member of Strategic Advisory Board at
NeoMedia Technologies Inc. since October 5, 2007. Mr. Lefar earned recognition
as one of Advertising Age's Power Players, received the Marketing Top 50 Award,
and lead Cingular Wireless to be a recipient of the accredited Gold Effie
award.
Mr. Lefar holds a BS in Commerce from the McIntire
School of Commerce at the University of Virginia.
David PEARSON is Executive Vice President and CFO, effective May 1,
2013.
Subsidiaries & Partnership:
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Vonage Worldwide Inc. |
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Delaware |
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Vonage Network LLC |
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Delaware |
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Vonage America Inc. |
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Delaware |
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Vonage Marketing LLC |
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Delaware |
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Novega Venture Partners, Inc. |
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Delaware |
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Vonage International Inc. |
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Delaware |
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Vonage Canada Corp. |
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Nova Scotia, Canada |
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Vonage A/S |
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Denmark |
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Vonage B.V. |
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The Netherlands |
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Vonage Limited |
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United Kingdom |
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Vonage Singapore Pte. Ltd. |
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Singapore |
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Vonage Limited |
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Hong Kong |
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Vonage Australia Pty. Ltd. |
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Australia |
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Vonage India Private Limited |
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India |
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Vonage Applications Inc. |
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Delaware |
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Vonage Apps. Ltd. |
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Israel |
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DSP LLC |
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Delaware |
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Intellectual Property Asset Management, LLC |
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Delaware |
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Vonage
Foundation |
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Delaware (Non-Profit) |
On May 1, 2013, Vonage Holdings Corporation announced unaudited consolidated financial results
for the first quarter ended March 31, 2013. For the quarter, the company
reported revenues of $209.087 million against $215.903 million a year ago.
Income from operations was $22.474 million against $20.533 million a year ago.
Income before income tax expense was $21.015
million against $18.844 million a year ago. Net income was $13.047 million or
$0.06 per diluted share against $13.921 million or $0.06 per diluted share a
year ago. Net cash provided by operating activities was $9.752 million against
$11.119 million a year ago. Adjusted EBITDA was $34.431 million against $31.800
million a year ago. Capital expenditures was $2.031 million against $2.033
million a year ago. Capital expenditures, intangible asset purchases and
development of software assets was $4.344 million against $9.033 million a year
ago. Free cash flow in the first quarter was $5 million, up from $2 million in
the year ago quarter, due primarily to lower CapEx. Free cash flow declined
from $49 million sequentially reflecting seasonality in working capital due to
timing of vendor payments and certain recurring payments in the first quarter,
including annual maintenance renewals and compensation related payments. The
company expects its ongoing investment in international expansion and mobile to
be in the range of $5-10 million per quarter. For mobile, the investment will
include development and general and administrative expenses as the company
strengthens the capabilities of its mobile platform and prepares for the launch
of its roaming service. It also includes investment in digital marketing behind
the enhanced Global Calling Card platform.
For international expansion, the investment will
include general and administrative expenses for the build-out of Vonage's
management team and systems as the Company establishes its new business in
Brazil. expect to spend an incremental $5 million to $7 million in support of
the nationwide launch of BasicTalk. The company may choose to increase or
reduce the level of investment depending on progress and success of the
company's initiatives. The company continues to expect 2013 capital and
software expenditures to be in the range of $30 million to $35 million.
On attachment:
- 10K 2012
- 1st 10Q 2013
Banks: JPMorgan Chase Bank
Legal filings & complaints:
State: New Jersey
Case number: 3:11-cv-06187-AET-TJB
Plaintiff: VONAGE HOLDINGS CORP.
Defendant: HARTFORD FIRE INSURANCE COMPANY
Anne E. Thompson, presiding
Tonianne J. Bongiovanni, referral
Date filed: 10/20/2011
Date of last filing: 03/22/2013
Cause: Insurance contract
State: Delaware
Case number: 1:11-cv-00723-GMS
Plaintiff: Bear Creek Technologies Inc.
Defendant: Vonage Holdings Corporation et al
Gregory M. Sleet, presiding
Date filed: 08/17/2011
Date of last filing: 04/10/2013
Cause: Patent infringement
Secured debts summary (UCC):
None
Domestic credit history:
Domestic credit history
appears as follow:
National Credit Bureaus
gave a correct credit rating.
According to our credit analysts, during the last 6 months, domestic
payments were made with an average of 2 to 5 days beyond terms.
Other comments:
The Company maintains is
developing a regular business.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
The risk is low.
Our opinion:
A business connection may
be conducted.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.53.95 |
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|
1 |
Rs.70.50 |
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Euro |
1 |
Rs.83.81 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.