The wholesale voice tandem business is apparently not quite dead yet. Just two and a half months after its sale of the former Tinet network to GTT in April and its refocus on the core voice business, Inteliquent is out there materially raising 2013 guidance this morning:
| Previous guidance | Revised guidance | |
|---|---|---|
| Revenue | $200-210M | $215-$225M |
| Adjusted EBITDA | $34-40 | $57-$62M |
| Capital Expenditures | $14-18 | $12-$16M |
Late last year Inteliquent settled a big dispute with a major customer that threatened to shift the economic base on which it operated its voice business. Indeed, when the year began their forward outlook was a far cry from past years. However, it appears the company has found some adjustments to compensate, at least in the short term. The midpoint of EBITDA guidance went up by 60% with margins rising back above 25% again.
Given that capex guidance is dropping slightly the bulk of that will turn into extra cash flow that will likely feed into additional dividends. Inteliquent has been focusing on returning cash to shareholders of late, rather than attempting to parlay their cash flow into new lines of business as they had tried with the Tinet deal.
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