Vonage has been facing an awful time since it has gone public. Its shares have plummeted to such an extent that recovery seems impossible as of now. The share which was offered at $17 a piece during the IPO and made a bad debut at the bourses is now trading at an abysmally low price of $6.70 per share.

Many customers had stepped back from their commitments of paying for the shares and the company intended to collected money from them but it came to light that Vonage had paid $17.9m to underwriters as compensation. Vonage had brought back $11.7 m worth of its stock in order to meet its obligations to IPO underwriters and would pay back another $6.2m towards underwriter costs. It has already been bombed with at least nine lawsuits with regards to its IPO.

It seems that bad times have just started for Vonage as it has posted a huge second quarter loss as revenue missed analyst's estimates as a result of customer defections. Its net loss shot up to $74.1m as compared to $63.6m in the previous year. It incurred considerable amount on TV advertising, although their revenues doubled to $143m but they still missed the analyst's mark and it is expected that its yearly sales would also miss the mark.

It seems if this trend continues for a longer time either it would be bought back by one of its competitors or probably may face bankruptcy.