Here is the scoop on Vonage. Earnings were lower than expected but losses as a percentage of earnings decreased.

Vonage's loss from April through June was $74.1 million, or $1.16 per share, compared with a loss of $63.6 million in the same quarter last year.

The consensus forecast of analysts surveyed by Thomson Financial was for a loss of 56 cents per share this time, but the predictions fell in a very wide range, from a loss of 38 cents to a loss of $1.18.

Revenue was $143.4 million, short of Wall Street's forecast of $148.3 million. Vonage's revenue was $59.4 million in the same quarter a year ago.

Vonage's CEO, Mike Snyder, said the company sees the quarter "as a key inflection point on our path to profitability." He said in Tuesday's earnings release that the company expects to begin generating "adjusted operating profits as early as the first quarter 2008."

In the first half of 2006, Vonage showed a loss of $159.3 million on revenue of $262.3 million which equates to about 61%. In the same period in 2005, the loss was $123.6 million, with revenue of $100.1 million or 123%.

For Vonage critics this is the exact news they wanted to hear and for Vonage advocates I feel this is also the news they wanted to hear. I think the bears probably won out though. We will see how this plays out next quarter.

See Washington Post story.