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Posts Tagged ‘IQNT’

Inteliquent Offers a 33% Special Dividend

Inteliquent (NASDAQ: IQNT), a leading provider of global interconnection and interoperability solutions, today announced that its Board of Directors has declared a special one-time cash dividend of $3.00 per share, or approximately $97 million in the aggregate. The dividend will be funded with available cash on hand.

The payment date for the special one-time cash dividend is October 30, 2012. At $3.00 per share, the dividend represents approximately 33% of the Company’s closing stock price onOctober 3, 2012.

First Call analysts have a consensus Hold recommendation with a 2.9 stock rating.  The mean 12-month price target is $13.

Recently, Inteliquent announced certain changes to its management team.  Surendra Saboo, the Company’s President and Chief Operating Officer, informed the Company of his decision to step down as President and Chief Operating Officer effectiveOctober 1, 2012.  In addition, Robert M. Junkroski, the Company’s Chief Financial Officer, informed the Company of his decision to step down as Chief Financial Officer effectiveOctober 1, 2012. It is anticipated that Dr. Saboo and Mr. Junkroski will remain employed with the Company until November 1, 2012 to assist with the transition of their responsibilities.

Neutral Tandem (IQNT) Announces Special Dividend

Neutral Tandem, Inc. (IQNT), doing business as Inteliquent, provides interconnection and interoperability solutions worldwide.  It offers voice, IP transit, and Ethernet telecommunications services primarily on a wholesale basis.  The company announced its intention to declare and pay a special one-time cash dividend in an amount between $4.80 and $5.65 per share, or between approximately $155 – $180 million in aggregate, during the fall of 2012, subject to market and other conditions.  IQNT is currently trading at $12 per share making the special dividend yield of 40% or more.

The company earnings were well below estimates on slowing sales to telecom service provider customers.  However, Thomas White/Global Capital upgraded NEUTRAL TANDEM INC to FAVORABLE on August 13, 2012.  IQNT has an equity summary score of 6.3 out of 10 for a Neutral outlook.

Bottom line: This is a stock to watch going forward as the special dividend is huge (40%) but the company must get its earnings turned around before Fall.  The company had $165 million in current assets as of 6/30.

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