Vonage Holdings reported a narrowing of its quarterly net loss Thursday and the struggling VoIP provider's numbers indicated that few net subscribers were canceling service.

The firm's stock jumped 10 percent immediately after the first quarter results were announced. Vonage said it lost $72 million in the quarter compared with the $85 million that it lost in the same quarter in the previous year.

"Revenue for the first quarter 2007 grew to a record $196 million, a 64% increase from $120 million in the first quarter 2006," the company reported. "Direct cost of goods sold for the quarter was $13 million versus $18 million last year and $12 million in the prior quarter."

The firm has been fighting for its business life in recent weeks after it lost a patent infringement case to Verizon Communications.

On a brighter note for Vonage, the company seems to be keeping loyal customers. A total of 166,000 net new subscribers were added in the quarter keeping the average monthly customer churn at 2.4%, Vonage said. That brings the grand subscriber total to 2.4 million.

Vonage chairman Jeffrey Citron said also that he believes the firm has developed two workarounds to two of the three patents that were cited against it in the case with Verizon.

"We have battled through an extremely difficult quarter and will continue the fight in the courtroom," he said. "While the patent litigation has challenged our business, it has not distracted our focus."