Neutral Tandem shares fall after patent setback; Oppenheimer cuts stock rating
By APTuesday, March 30, 2010
Neutral Tandem shares fall after patent setback
NEW YORK — Shares of communications company Neutral Tandem stumbled Tuesday after a setback in an ongoing patent dispute.
Neutral Tandem’s technology connects different phone companies so that a call from one can be accepted by another. Its privately held rival Peerless Network LLC announced Monday that the U.S. Patent and Trademark Office has rejected all 23 claims made regarding one of Tandem’s patents.
Given the ruling, Oppenheimer & Co. analyst Timothy Horan downgraded Tandem’s stock on Tuesday to “Perform” from “Outperform.”
He said the patent ruling and low capital costs could open the way for Peerless to expand into new markets. That will put pressure on Tandem’s pricing and market share.
Shares of Neutral Tandem Inc. $1.38, or 8 percent, to $15.99 in midday trading.
