* Q2 EPS $0.25 vs est $0.28
* Q2 rev rises 8.5 pct to $44.8 mln vs est $45.8 mln
* Says FY results to be toward lower end of estimates
* Baird analysts cut stock to neutral from outperform
* Shares fall as much as 22 pct
July 29 Neutral Tandem Inc (TNDM.O) posted
lower-than-expected quarterly results, hurt by increased
expenses, and said full-year results will be toward the lower
end of its outlook, sending the inter-carrier communications
services provider's shares to a lifetime low.
For the second quarter, the company posted net income of
$8.5 million, or 25 cents a share, compared with $10.7 million,
or 31 cents a share, a year ago.
Revenue rose about 9 percent to $44.8 million.
Analysts on average expected the company to earn 28 cents a
share, on revenue of $45.8 million, according to Thomson
"The decrease in net income was primarily due to increased
network expense, employee expenses, professional fees and
depreciation expense," the company said in a statement.
Robert W Baird & Co lowered its rating of the company to
"neutral" from "outperform", and said there was no end in sight
to continued competitive pressures.
"It's clear that competitive pressures could continue to
exert downward pressure on revenue and margins, creating
greater forward uncertainty," Baird analysts, who cut their
price target on the stock to $13 from $18, wrote in a note.
Earlier, the company had said that it expected 2010 revenue
between $185 million and $200 million. [ID:nWNAB7472]
Shares of the company were trading down 17 percent at
$10.88 Thursday morning on Nasdaq. Earlier in the session, they
touched a low of $10.25.
(Reporting by Vinay Sarawagi in Bangalore; Editing by Maju