Thursday, Interconnection service provider Neutral Tandem, Inc. (TNDM), reported higher earnings for its second quarter, helped by a 44.3% revenue growth, from improved number of minutes carried over our network and expansion into additional geographical markets. Earnings and revenues came in above Street estimates. The company also expects higher revenue for full year 2009, than forecast earlier.
The Chicago, Illinois-based company reported net income for the second quarter of $10.7 million or $0.31 per share, compared to $5.6 million or $0.17 per share in the year-ago quarter.
On average, twelve analysts polled by Thomson Reuters expected the company to earn $0.29 per share for the quarter. Analysts' estimates typically excludes special items.
Revenues for the quarter increased 44.3% to $41.2 million from $28.6 million in the prior-year quarter, primarily due to an increase in the number of minutes carried over our network and expansion into additional geographical markets. Ten analysts had a revenue consensus of $40.35 million for the second quarter.
Billed minutes for the quarter increased 50.0% to 21.3 billion minutes from 14.2 billion minutes for the three months ended June 30, 2008.
Network and facilities expenses for quarter were $12.4 million, up from $9.4 million for the same quarter last year, mainly because of greater traffic volumes carried over the company's network and an increase in the number of markets in which it operates.
Combined operating expenses consisting of operations, sales and marketing, and general and administrative expenses increased to $9.0 million from $7.8 million for the comparable quarter of 2008. The increase primarily resulted from higher employee expenses, including additional headcount associated with our business growth.
Income from operations was $16.6 million, or 40.2% of revenue, compared to $8.4 million or 29.4% of revenue for the three months ended June 30, 2008.
For the six-month period, the company's net income totaled $19.72 million or $0.59 per share, up from $9.67 million or $0.29 per share in the same period last year.
Revenues for the first half of fiscal 2009 rose to $79.48 million from $54.80 million in the similar quarter of 2008.
Looking ahead, the company boosted its full-year revenue forecast to the range of $162 million - $168 million compared with its previous range of $158 million to $165 million. Twelve analysts foresee revenues of $164.90 million for the full year.
Adjusted EBITDA for the full year is expected to be between $77 million and $81 million, an increase from the previous forecast range of $74 million to $78 million.
TNDM is closed Thursday's regular trading at $28.50, down $3.68 or 11.44% on a volume of 3.52 million shares.
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