Vonage top exec steps down

Vonage, navigating its darkest hours in a grim first year as a public company, handed the reins back to founder Jeffrey A. Citron at least temporarily as the Internet phone provider tried to shine a positive light on its plights in business and in court, an Associated Press report said.

The Associated Press report said the resignation of CEO Michael Snyder on Thursday follows an unnerving month for Vonage Holdings, which popularized the idea of making calls over a high-speed Internet connection.

With competitive pressures already savaging its business and stock price, wiping out $2 billion of investor wealth in just 10 months, Vonage is now facing high-stakes legal threat over the technology it uses to connect customer calls, the report said.

Citron, who is chairman of Vonage's board and will serve as CEO until a replacement is found, said marketing expenditures remain too high despite cuts that have already been made, the report said.

The company also plans to reduce operating costs with an undetermined number of job cuts, it added.

The report further said investors are trading the stock down on concerns of how much Vonage spends to attract new customers and whether it can hold onto enough of those subscribers, all the while fending off competition from cable TV companies, cell phones and even traditional phone companies.