Vonage Holdings Corp., the Holmdel-based Internet phone company that has lost more than 80 percent of its stock market value since going public a year ago, said negative publicity is making it hard to hire and retain employees.
Media reports on patent infringement litigation and job cuts led to defections in the company's technology and engineering departments, Vonage said Tuesday in its quarterly report.
"As a result, there is significant strain being placed on our employees and, consequently, our operations," the company said in the filing. "The quality of our services could suffer, which could negatively affect our brand, operating results and financial position."
Vonage has racked up $325 million in losses since its IPO amid soaring legal expenses and costs to acquire customers. The company, which last month announced plans to cut 10 percent of its work force, has said in court filings that bankruptcy protection may be necessary if it loses a legal battle with Verizon Communications Inc.
Shares of Vonage (VG) fell 19 cents, to $3.16, on the New York Stock Exchange. They were first sold to the public at $17 a piece.
Vonage had 1,729 employees at the end of March, a 22 percent increase from a year earlier, according to the filing Tuesday with the Securities and Exchange Commission.
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