In parallel with their Q2 earnings report this morning, tndm unveiled a new HD Voice Interconnect product. As they have done with VoIP in general, the company is seeking to connect up islands of HD Voice, which offers greater call clarity via a wideband connection. The service requires a SIP interconnect, and then will connect via HD Voice if the desired endpoint supports it or else via regular voice as usual. Independent VoIP provider 8x8, Inc (NASDAQ:EGHT, news, filings) has already hooked up to the new offering.
On the earnings front, here is a quick table of the company's results in context of the past couple of quarters (since the Tinet deal closed):
|(in millions ex per share data)||Q4/10||Q1/11||Q2/11||FY11 Guidance|
|Revenue||63.8||66.4||65.1||256-268 (high end)|
|Earnings per share||0.18||0.24||0.20|
Revenues were a bit below analyst estimates, but well within guidance. During the call, Neutral Tandem said that life was tougher than usual on the IP transit front at its Tinet division. Pricing pressure was rather more substantial during the quarter than it had been recently, including a big re-negotiation of a contract with a European customer that resulted in a $1M hit to revenues. The wholesale IP transit business is always like that though, and is best seen as a means to other ends.
Meanwhile, pricing on the voice front saw less pricing pressure, and margins were consistent with past performance. Their EtherCloud offering is of course still developing, and they are seeking new outlets via the channel as they start to ramp it. Neutral Tandem is working on new products in the areas of video interconnection and hosted services, and reiterated its potential interest in M&A opportunities. IMHO those probably would focus on the same products they are looking to expand into, as opposed to anything more major. Actually, the video interconnection possibility seems a likely one for them to make a move.
The company now expects revenues to come in at the high end of guidance, which suggests revenues will remain at similar levels or grow slightly during the second half. Other elements of guidance were reaffirmed.
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