Shares of internet call provider Vonage Inc. (NYSE: VG) rose on Thursday after its CEO resigned and the firm said it would reduce expenses.
Vonage said that Mike Snyder, former CEO, resigned late Wednesday and the company's founder Jeffrey Citron would take over on an interim basis. The company has been under pressure after a U.S court found that the firm's key technology is in violation of patents held by Verizon Communications Inc. (NYSE: VZ).
Additionally, Vonage announced cost cutting measures focused on reducing the company's loss from operations.
In order to strengthen Vonage's financial position, we are taking a number of measures to reduce our costs and operating expenses, said Citron in a statement. We remain focused on improving our competitive position in the marketplace.
The Holmdel, NJ.-based firm plans to reduce its marketing expense by approximately $110 million, reducing its marketing expenditures of roughly $310 million for 2007.
Operational consolidation as well as workforce reduction is also expected to take place through the remainder of the year.
Shares of the firm rose 20 cents, or 6.7 percent on Thursday, to close at $3.30 on the New York Stock Exchange.