Interconnection-services provider Neutral Tandem Inc. misses fourth quarter estimates on higher expenses, delivering a blow to its stock Monday.
Shares were down 18 percent in late afternoon trading, to $13.86.
The company reported Monday morning that revenue rose 42.6 percent, to $63.8 million for the three months ended Dec. 31, 2010, from a year earlier. The increase was primarily related to the inclusion of $16.1 million of revenue from Tinet SpA, an international carrier and provider of Ethernet and IP Transit services.
Still, the gains missed analysts’ expectations, on costs associated with the Tinet acquisition and an increase in network capacity expenses.
