Inteliquent (NASDAQ:IQNT, news, filings) saw fewer voice minutes on its network in Q2, resulting in numbers that missed expectations and a reduction in full year guidance. In addition, the company says it has been evaluating strategic alternatives, and is now planning a special one-time dividend to return some cash to shareholders as well as a stock buyback.
| ($ in millions) | Q2/11 | Q3/11 | Q4/11 | Q1/12 | Q2/12 | FY12 guidance |
|---|---|---|---|---|---|---|
| Revenue | 65.1 | 67.3 | 69.5 | 70.7 | 68.3 | 280-290 |
| Adj. EBITDA | 22.8 | 21.0 | 22.1 | 21.3 | 18.5 | 74-82 |
| Adj. EBITDA Margin | 35.0% | 31.2% | 31.7% | 30.2% | 27.1% | |
| Earnings per share | 0.20 | 0.18 | 0.19 | 0.21 | 0.12 | |
| Billed Minutes | 32.5 | 32.9 | 33.3 | 34.4 | 32.8 | 133-138 |
| Capex | 7.2 | 6.8 | 2.4 | 9.1 | 5.7 | 25-30 |
Voice minutes were down sequentially, although still up slightly over last year. That triggered reduced guidance for revenues, EBITDA, billed minutes, and capex for the full year. IP and Ethernet appear to have been relatively steady by comparison, although I will look for more details on the CC about revenues from here from all products.
Inteliquent’s planned one-time dividend is planned for this fall and would be between $4.80 and $5.65 per share. That’s $150-180M, more than their cash on hand so clearly it depends on making a balance sheet move first of $75-100M. The company has also put a $50M stock buyback program in place.
Despite this quarter’s apparent setback, it’s important to remember that they remain profitable and generate quite a bit of cash.
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Categories: Financials · Internet Backbones · VoIP
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Did Intelliquent explain the reason(s) for the decreased voice minutes?
In the CC, they said that they had been unable to come to renewed terms with a local transit customer, which migrated its traffic elsewhere. They hope to win it back, but had to take the associated revenues out of guidance etc.
In todays day and age of VoIP is winning back a voice customer realistic?