NEUTRAL TANDEM, INC. (TNDM) filed Quarterly Report for the period ended 2009-09-30.
The Company provides tandem interconnection services principally to competitive carriers including wireless wireline cable telephony and Voice over Internet Protocol or VoIP companies. Neutral Tandem, Inc. has a market cap of $770.8 million; its shares were traded at around $23.03 with a P/E ratio of 22.7 and P/S ratio of 6.3.
Highlight of Business Operations:
For the three months ended September 30, 2009, we increased revenue to $44.7 million, an increase of 43.5% compared to the three months ended September 30, 2008. The increase in revenue was primarily due to an increase of minutes of use to 23.0 billion minutes processed in the three months ended September 30, 2009 from 15.9 billion minutes processed in the three months ended September 30, 2008, an increase of 44.7%. Our income from operations for the three months ended September 30, 2009 was $17.3 million compared to $8.8 million for the three month ended September 30, 2008. Net income for the three months ended September 30, 2009, was approximately $11.1 million compared to net income of $6.2 million for the three months ended September 30, 2008.
For the nine months ended September 30, 2009, we increased revenue to $124.2 million, an increase of 44.5% compared to the nine months ended September 30, 2008. The increase in revenue was primarily due to an increase of minutes of use to 64.0 billion minutes processed in the nine months ended September 30, 2009 from 42.9 billion minutes processed in the nine months ended September 30, 2008, an increase of 49.0%. Our income from operations for the nine months ended September 30, 2009 was $47.8 million compared to $23.4 million for the nine months ended September 30, 2008. Net income for the nine months ended September 30, 2009, was approximately $30.8 million compared to net income of $15.8 million for the nine months ended September 30, 2008.
Operating Expenses. Operating expenses for the three months ended September 30, 2009 of $27.4 million increased $5.1 million, or 22.8%, from $22.3 million for the three months ended September 30, 2008. The components making up operating expenses are discussed further below.
General and Administrative Expense. General and administrative expense increased to $5.4 million in the three months ended September 30, 2009, or 12.0% of revenue, compared with $2.8 million in the three months ended September 30, 2008, or 9.0% of revenue. The increase in our general and administrative expense is primarily due to an increase of $0.2 million in salaries, $0.5 million in non-cash compensation and $1.9 million in professional fees.
Operations Expenses. Operations expenses were $14.8 million for the nine months ended September 30, 2009, or 11.9% of revenue, an increase of $2.3 million compared to $12.5 million for the nine months ended September 30, 2008, or 14.5% of revenue. The increase in our operations expenses is primarily due to an increase of $1.3 million in payroll and benefits, due to an increase in the number of switch location personnel, along with an increase of $1.0 million due to higher switch repair, maintenance and insurance expenses.
General and Administrative Expense. General and administrative expense increased to $12.5 million in the nine months ended September 30, 2009, or 10.0% of revenue, from $9.0 million for the nine months ended September 30, 2008, or 10.5% of revenue. The increase in our general and administrative expense is primarily due to an increase of $0.4 million in salaries, $1.4 million in non-cash compensation and an increase of $1.5 million in professional fees.
TNDM is in the portfolios of Arnold Van Den Berg of Century Management.
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