01 August 2006

In its first earnings report as a public company, Internet phone provider Vonage Holdings Corp. said Tuesday its losses increased 17 percent in the second quarter as customer-acquisition costs stayed high.

The results illustrated the multiple challenges facing Vonage, which raised $531 million with a May 24 initial public offering that was disastrous for investors. The stock debuted at $17 per share and dropped almost immediately, recently lingering below $7.