Give some credit. Many an obituary has been written about the company, yet they keep hanging on. even reveals a $5 million profit, although it came about from a unique occurrence – a $13 million mark-to-market adjustment associated with a derivative liability on its convertible debt – whatever that means. The bring-your-own-broadband VoIP services provider lost 6,000 subscribers in 1Q09, ending the quarter with 2.6 million lines. Churn rose to a level of 3.1%, which is high, even for Vonage.

Revenue totaled $224 million, which was relatively flat year-over-year and 1% higher sequentially. Operating cash flow–adjusted EBITDA–rose for the sixth consecutive quarter, coming in at $21 million, up from $8 million a year ago and $20 million sequentially.

Vonage reports direct cost of telephony services declined to $52 million ($6.67 per line) from $56 million ($7.26 per line) a year ago and $57 million ($7.22 per line) in 4Q08. Selling, general and administrative expenses also fell, to $68 million from $79 million in the year-ago quarter and $69 million in Q408, the result of reductions in overhead, less costly customer care management, and compensation and benefit costs.

Pre-marketing operating income rose to a record-high $98 million ($17.71 per line), up from $83 million a year ago and $92 million sequentially. Marketing expenses rose to $66 million as compared to $61 million a year ago and $62 million in 4Q08.

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