Neutral Tandem Shrs Whacked As Q1 Results Come In Light

Neutral Tandem (TNDM), provider of telco interconnection services, posted disappointing Q1 results.

The company reported revenue of $44.8 million and profits of 25 cents a share; the Street had expected $45.5 million and 30 cents. TNDM said that it continues “to face pressures due to competition and the general business conditions facing our customer base.” The company said lower profits reflect increasing network expense, employee expenses professional fees and taxes.” Revenue was up 17.2% from a year ago, but net income was down 6.4%. Adjusted EBITDA was up 7.8% to $20.6 million.

Neutral Tandem said full year results will be toward the low end of previous guidance.

TNDM is down $2.16, or 13.4%, to $13.95.