Inteliquent cuts revenue view for 2012

08 August 2012 |


Inteliquent, the combined brand of Neutral Tandem and Tinet, has cut its fiscal year revenue view having posted quarterly results that were below expectations.

The carrier has cut its full-year revenue outlook to between $280 million and $290 million, from the original forecast of between $290 million and $300 million in March. Of the overall revenue, 74% is expected to come from voice, 21% IP transit and 5% Ethernet.

Analysts were expecting a full year revenue of $294.4 million, according to Reuters.

Inteliquent has been hit by difficult market conditions in Europe and the US, which have reduced demand for network related services. Recently the carrier has been seeking to address demand for data services in the Asia-Pacific region, having entered a strategic alliance for Ethernet services with Malaysia’s TM in June.

The company also announced a plan to issue a one-time special dividend of between $4.80 and $5.65 during Autumn and has been authorised by its board for a $50 million share buyback.

Inteliquent’s net income fell nearly 50% to $3.7 million in the second quarter from $7.1 million a year earlier. Revenue for the quarter rose 5% to $68.3 million.

Adjusted EBITDA for fiscal year 2012 is estimated to be between $74 million and $82 million and capital expenditures are expected to be between $25 million and $30 million.

Inteliquent estimated that billed voice minutes for 2012 would be between 133 billion and 138 billion.