(RTTNews) -  Wednesday, broadband VOIP service provider Vonage Holdings Corp. (VG: News ), reported a wider loss for the third quarter ended September 30, impacted a one-time charge related to convertible note adjustments related to a rise in its stock price. Adjusted profit, however, was an improvement from last year. Vonage stock plunged more than 23% on the New York Stock Exchange.

The Holmdel, New Jersey-based company's net loss widened to $54.56 million or $0.33 per share from $7.82 million or $0.05 per share a year earlier. The quarterly net loss includes, a one-time charge of $63 million related to the rise in value of convertible notes due to the significant surge in stock price during August and a gain on extingishment of debt of $3.82 million.

On adjusted basis, excluding one-time items, net income rose to $4.63 million or $0.03 per share from $1.14 million or $0.01 per share a year earlier. Adjusted EBITDA increased to $33.21 million from $31.13 million for the year-ago period.

Quarterly operating revenues fell 2% to $221.51 million from $225.77 million for the same period last year.

Operating revenues from customer equipment and shipping was $5.42 million, compared to $9.68 million a year-ago. Average revenue per user or ARPU increased to $29.89 from $28.75 in the year ago quarter.

The company's income from operations was $18.27 million compared, to loss from operation of $2.86 million last year. Operating expenses declined to $203.23 million from $228.63 million in the year-ago period.
Interest expense for the third quarter rose to $13.69 million from $5.5 million in the year earlier period.

For the nine months period, net loss was $47.00 million or $0.29 per share, compared to $23.66 million or $0.15 per share in the same period last year. Operating revenues for the period dropped to $665.54 million from $677.91 million a year earlier.

Commenting on the third quarter new launches, Marc Lefar, Vonage Chief Executive Officer, said, "In October, we released Vonage Mobile, our first mobile calling application for smartphones. This application is focused on the international calling market and provides significant improvements in convenience and savings versus calling cards and wireless carriers. Vonage Mobile works over cellular and Wi-Fi networks..."

Looking forward, Lefar said, "...Over the next few months, we expect to launch Vonage World for Mobile, a flat-rate plan that mirrors the Vonage World residential plan. Discounts for customers of both services are planned. Vonage Mobile is available as a free download on the iPhone(R), BlackBerry(R), and iPod touch(R)."

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