Inteliquent Closes Out 2011, Looks Ahead

Fresh off its rebranding, Inteliquent (NASDAQ:IQNT, news, filings) closed out 2011 with a nice revenue push but higher spending as it prepared its new hosted UC product line.  Here’s a quick table of their Q4 results and 2012 projections in context.

($ in millions)	Q4/10	Q1/11	Q2/11	Q3/11	Q4/11	FY12 guidance
– IP/Ethernet	16.1	15.7	15.0	16.6
– Voice	47.7	50.7	50.1	50.7
Revenue	63.8	66.4	65.1	67.3	69.5	290-300
Adj. EBITDA	22.8	24.2	22.8	21.0	22.1	85-90
Earnings per share	0.18	0.24	0.20	0.18	0.19
Billed Minutes	29.9	31.7	32.5	32.9	33.3	141-147
Capex	8.8	5.6	7.2	6.8	2.4	30-35

Revenues of $69.5M were above analyst expectations and exceeded the company’s full year 2011 guidance.  The breakdown between voice and IP Ethernet revenues will have to wait for the CC, if they supply it.  Meanwhile, 2012 revenue guidance of $290-300M was solidly above composite analyst projections of $285M according to Yahoo Finance.  The revenue breakdown for 2012 is expected to be approximately 74% voice, 20% IP, 5% Ethernet, and 1% Hosted Services.  That suggests a slightly higher growth rate from the non-voice side of things than we saw in 2011, which would be welcome.

On the other hand, EBITDA checked in slightly below expectations, and earnings per share of $0.19 were up a penny sequentially but about a nickel shy of estimates. Last quarter’s EBITDA was deflated slightly by currency fluctuations, however this quarter I think the main culprit was probably the work they are doing behind the scenes on their hosted UC product line.  Capex is expected to surge in 2012, also no doubt due to the investments in new products.

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Categories: Financials · Internet Backbones · VoIP