Neutral Tandem Announces Second Quarter 2010 Financial Results
Second Quarter 2010 Highlights
- Revenue of $44.8 million, an increase of 8.5% from $41.2 million in Q2'09
- Adjusted EBITDA (as defined below) of $19.8 million, a decrease of 4.7% from $20.8 million in Q2'09
- Net income of $8.5 million, a decrease of 20.4% compared to $10.7 million for Q2'09
- Billed minutes of 25.9 billion, an increase of 21.5% over Q2'09
CHICAGO, July 29, 2010 (GLOBE NEWSWIRE) -- Neutral Tandem, Inc. (Nasdaq:TNDM), a leading provider of tandem interconnection services, today announced its second quarter 2010 financial results.
"We are pleased with our solid second quarter financial results," said Rian Wren, President and Chief Executive Officer of Neutral Tandem. "While we face certain challenges in our local transit business, we continue to gain traction with our newer service offerings. As a result, consistent with our announcement on May 5, 2010, we continue to project that our full year financial results will be toward the lower end of the estimates we announced on February 16, 2010. We believe that our core business offerings and strong balance sheet will provide us with a platform that will allow us to grow by developing innovative new product offerings, such as our Ethernet eXchange."Second Quarter Results Revenue increased 8.5% to $44.8 million for the three months ended June 30, 2010, compared to $41.2 million during the three months ended June 30, 2009. The increase in second quarter 2010 revenue was primarily related to an increase in the number of minutes carried over our network as compared to the second quarter of 2009. Billed minutes increased 21.5% to 25.9 billion minutes for the three months ended June 30, 2010, compared to 21.3 billion minutes for the three months ended June 30, 2009. Network and facilities expenses for the three months ended June 30, 2010 were $14.6 million,compared to $12.4 million for the three months ended June 30, 2009. This increase was largely due to greater traffic volumes carried over our network and an increase in our network capacity. Combined operating expenses consisting of Operations, Sales and Marketing, and General and Administrative expenses were $12.9 million for the three months ended June 30, 2010, compared to $9.0 million for the three months ended June 30, 2009. The increase primarily resulted from higher employee expenses, including additional headcount, as well as increased professional expenses.
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