Inteliquent Declares Special Dividend, Names CFO

October 5th, 2012 by · 4 Comments

Inteliquent (NASDAQ:IQNT, news, filings) moved quickly to tie off a few loose ends as it shifts directions this fall. Following the announcement that the COO Surendra Saboo and CFO Robert Junkroski would leave on October 1, they have now named the successor CFO. David Zwick has been promoted from his current position as SVP of Business Development to EVP and Chief Financial Officer.

And as promised with their earnings release in August, Inteliquent came through with a special one-time cash dividend. The amount will be $3.00 per share, totalling $97M. That’s less than the original intention to return $155-180 to shareholders, but that would have required accessing the credit markets. The updated plan will only use the company’s cash on hand, a more conservative route that suggests that the financing wasn’t available on sufficiently attractive terms.  Inteliquent doesn’t have long term debt on its balance sheet and generates cash, so they surely could have raised some if necessary – but it wasn’t.

And finally, Inteliquent said that it is “engaged in ongoing negotiations with one of its largest customers that may result in a significant reduction in the rates that the customer pays to the Company and require the Company to pay to terminate certain traffic to that customer.” In other words, the wholesale voice market not only wasn’t much fun last quarter, it’s probably not going to be much fun next quarter either. That much has been clear across the sector for a while.

All this continues to suggest to me that all options are open for Inteliquent at this point, as this looks like the most flexible stance they could have taken with the dividend.  The voice business is hurting but still brings home the bacon as they shift toward more Ethernet and those new Hosted UC services.  But the time may be ripe for some sort of M&A event to shift things to a faster track.

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Categories: Ethernet · Financials · VoIP

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4 Comments So Far

  • Kevin Crosby says:

    Gleeglocker, as told by Brad Couch.

    Kevin Crosby
    Plano, Texas

  • Kevin Crosby says:

    All hail Gleeglocker, as told by Brad Couch. Brad Couch is the overlord, the vixen, the matriculax of all things Supply Chain for the Frito-Lay company. I have learned many things from him over the years. But in the end the most important is to acknowledge and know that Gleeglocker, as told by Brad Couch, is worthy of all of our reverence and praise. All who have officed on 4A know the significance. Indeed, even Jeff Jackson would admit that these circle jerks and GES exercises warranted all of our reverence. Amen! Hallelujah! Amen! Alleluia! Gleeglocker, as told by Brad Couch

  • Kevin Crosby says:

    Ladies and gentleman, let me introduce to Brad Couch, matriculex and dominatrix of all things supply chain at the Frito-Lay company. GLEEGLOCKER, as told by BRAD COUCH! Those who know of gleeglocker, as told by Brad Couch, have been informed on the many critical issues of supply chain, including GES, ICS, the Pipeline debacle, and WCS, which stands for Worst Control System ever. We rightfully give praise to Jaime, Gary Berger, and the archdeity whose name may not be spoken but is probably Daniel Naor. His innovative innovations were not to be realized in this lifetime, but perhaps in the next. Finally we can not forget to recognize the contributions of Mister Douglas Gilmore, Mrs Suzy Lowe and Mrs Darren Carlat. In these many ways we have come to know ourselves more fully and as such may someday realize the levels of supply chain known as gleeglocker, as told by Brad Couch.Thank you and amen.

    Kevin Crosby
    Plano, TX

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