Vonage Chairman Jeffrey Citron Tuesday defended the Internet phone company's ill-fated public offering and dismissed claims that looming competition from cable companies has dimmed its prospects.
"We (cable companies and Vonage) can both grow nicely at the same time," Citron said in an interview at USA TODAY.
Vonage pioneered voice over Internet protocol service, or VoIP, which uses a regular phone and adapter to send phone calls over a broadband line. Vonage has about 2 million lines.
But the company, which went public at $17 a share in May, fell 13% the first day of trading, largely on fears of increasing competition from deeper-pocketed phone and cable giants.
Its stock closed Tuesday off more than 58% from its opening price. It's the second-worst IPO of the year, based on Monday closing prices, Renaissance Capital says.
Renaissance analyst James DeStefano says the IPO was dominated by short-term investors.
Full text on USA 2day
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