Though it's seeing healthy billed minutes growth, Inteliquent (IQNT -13.8%) says it also faces "certain headwinds related to mandated pricing reductions from intercarrier compensation reform and previously agreed upon rate decreases with several customers."
The company is reiterating guidance for 2014 revenue of $210M-$220M, but the consensus ($219.5M) is currently near the high end of that range. Adjusted EBITDA guidance of $68M-$72M is also reiterated.
Voice revenue +10.2% Y/Y in Q2 to $54.9M vs. 11.3% growth in Q1. Minutes of use +15.3% to 33.9B.
Cost controls helped free cash flow rise 12% Y/Y to $16.8M. Opex fell 2.2% to $13.3M.
Inteliquent Inc provides wholesale voice services for carriers and service providers. The Company's voice services include streamlined SIP interconnection for domestic and international long distance traffic.