The Power of net2phone Business Communications Unleashed for Zoho Users
NEWARK, N.J., Sept. 29, 2020 — net2phone, a global provider of unified cloud communications solutions to businesses, has unveiled its Zoho integration. The integration enables sales teams and other Zoho users to seamlessly leverage net2phone’s world-class communication features within the Zoho environment.
“net2phone’s Zoho integration is a game-changer for Zoho users,” said Jonah Fink, President of net2phone. ”The integration greatly enhances the productivity and agility of sales teams and other users who can now quickly and easily connect with customers through automated functions.”
Within the Zoho environment, net2phone users can:
Click to call using the net2phone app. Call logs automatically appear within the lead ensuring proper task tracking.
Make data-driven decisions using net2phone call analytics and accurate Zoho reporting.
Take notes using Zoho’s note feature while on the call. These notes are attached to the record as it moves through the sales cycle.
Schedule follow up actions after the call including email notifications, tasks, field updates and more with rule-based automation.
“We are improving the way businesses communicate. It’s an exciting time for net2phone and our business customers,” Jonah Fink added.
net2phone’s Zoho integration is available in the US and Canada, Argentina, Brazil, Chile, Colombia, Mexico and Peru.
net2phone’s cloud unified communications offering includes unlimited global calling to over forty destination countries, live chat, call recording, webRTC, mobile apps and a myriad of additional communications capabilities including advanced management analytics.
About net2phone: net2phone’s cloud business communications solutions help businesses around the globe succeed through smarter conversations. net2phone is a subsidiary of IDT Corporation (NYSE: IDT), a provider of telecommunications and payment services. To learn more, please visit net2phone.com, connect with us on LinkedIn. Channel partners contact: partner@net2phone.com. Customer contact: sales@net2phone.com.
IDT Corporation to Report Fourth Quarter and Full Fiscal Year 2020 Results
NEWARK, N.J., Sept. 21, 2020 – IDT Corporation (NYSE: IDT), a global provider of communications and payment services, has scheduled its report of financial and operational results for the fourth quarter and full fiscal year 2020 (the three and twelve-months ended July 31, 2020) on Thursday, October 1, 2020.
IDT’s earnings release will be issued and posted on the IDT investor relations website (https://www.idt.net/investors-and-media) at approximately 4:30 PM Eastern.
IDT will host an earnings conference call beginning at 5:30 PM Eastern with management’s discussion of results, outlook and strategy followed by Q&A with investors.
To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from US) or 1-412-902-4243 (international) and request the IDT Corporation call.
A replay of the conference call will be available approximately three hours after the call concludes through October 8, 2020. To access the call replay, dial toll free 1-844-512-2921 (from US) or 1-412-317-6671 (international) and provide this replay number: 10147325. A replay will also be accessible via streaming audio at the IDT investor relations website.
About IDT Corporation: IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its Boss Revolution®, net2phone® and National Retail Solutions® brands. IDT’s wholesale carrier services business is a leading global carrier of international long-distance calls. For more information on IDT, please visit our website (https://www.idt.net/).
BOSS Revolution Launches “Stories of the American Dream” Video Series
Series Provides a Platform for Immigrants to Share their Inspirational Stories
NEWARK, N.J., Sept. 16, 2020 – IDT Corporation (NYSE: IDT), a global provider of communications and payment services, announced today the launch of its BOSS Revolution “Stories of the American Dream” video series.
The video series features compelling stories told by men and women who have immigrated to the United States in pursuit of the “The American Dream.” Their journeys originate in countries across the globe including Bangladesh, Colombia, Cuba, Ecuador, El Salvador, Ethiopia, Ghana, Guatemala, Honduras, Haiti, India, Mexico, Nicaragua, Nigeria, Panama, Sierra Leone, Spain and Venezuela.
Each story vividly portrays the individual’s experience while beautifully illustrating the courage, sacrifice and hard work characteristic of the US immigrant experience. Each storyteller has risked nearly everything to build a better life in the US while finding ways to help their families back home.
“Through these videos, we celebrate diversity, applaud hard work and most importantly, recognize a driving force that unites us all: the desire to have a better life and provide for our families,” said Shmuel Jonas, IDT’s CEO.
These vignettes also bear witness to the many ways in which immigrants from diverse geographies and walks of life contribute to their adopted country. They have found new homes in cities and towns across the US and are successful in a wide variety of industries including construction, sales, music, and education.
“We hope that these powerful narratives underscore for all Americans the diverse ways in which immigrants continue to build our country and make it a beacon of hope for the world,” Mr. Jonas added. “Through our BOSS Revolution communications and payment services, we work every day to help new Americans share their successes with, and remain close to, their loved ones back home.”
Each week, beginning on September 16, 2020, viewers can enjoy a new story on BOSS Revolution’s website storiesoftheamericandream.com. For more information regarding this campaign or to speak with a BOSS Revolution brand representative, please contact Havas FORMULATIN at: bossrevolution@havasformulatin.com.
About IDT Corporation:??
IDT Corporation?(NYSE:?IDT) provides communications and payment services to individuals and businesses primarily through its flagship BOSS Revolution®?and net2phone®?brands. ?IDT’s wholesale Carrier Services business is a leading global carrier of international long-distance calls.?For more information on IDT, visit?www.idt.net.
About Boss Revolution:
BOSS Revolution services are available at more than 40,000 retailers across the United States, through the BOSS Revolution Calling and BOSS Revolution Money apps (available free on iTunes and Google Play) and through the BOSS Revolution website https://www.bossrevolution.com/en-us/. Follow BOSS Revolution on Facebook, Twitter and YouTube.
net2phone and TBI Unveil Partnership Bringing Cloud Communications to TBI’s Selling Agents
NEWARK, N.J. and CHICAGO, July 23, 2020 — net2phone, a global business cloud communications provider, and TBI, a leading third-party technology distributor, today announced a new partnership. Through the agreement, TBI will offer and support net2phone’s powerful suite of cloud communications solutions through its extensive network of technology selling agents.
“We are delighted to partner with TBI. Its strong focus on cloud-based technologies and vast industry experience is a perfect fit for net2phone,” said Jonah Fink, President of net2phone. “As businesses continue to adapt to the unprecedented demand for untethered communications and collaboration, this is an ideal time for our two organizations to enhance the portfolio of essential solutions offered by TBI’s rapidly expanding nationwide network of technology agents.”
net2phone’s cloud communications approach includes robust feature sets and integrations with key applications such as Microsoft Teams, along with a deep commitment to the channel, including industry-leading channel incentives, flexible pricing, white-glove on-boarding and customer success teams.
The new partnership further expands and strengthens TBI’s portfolio of leading cloud solutions. “net2phone provides its partners with global opportunities. Demand for reliable communication services has accelerated rapidly as more businesses seek top providers with easy integrations,” said TBI’s Senior Vice President of Operations, Mike Onystok. “net2phone will help TBI’s selling partners win more business with its easy to deploy, flexible solutions,” he added.
About net2phone: net2phone’s cloud communications solutions help businesses around the globe succeed through smarter conversations. net2phone is a subsidiary of IDT Corporation (NYSE: IDT), a provider of telecommunications and payment services. To learn more, please visit net2phone.com or connect on LinkedIn.
About TBI: TBI is North America’s largest privately held Master Agent. Since 1991, TBI has served as a technology services distributor, assisting Systems Integrators, VARs, MSPs, IT consultants, developers, software distributors and more in advising and sourcing the right technology solutions. TBI serves as a partner’s advocate, ensuring the proper provisioning of cloud, internet, data, mobility, voice, and managed services from best-in-class service providers to achieve clients’ desired business outcomes. With an 75+ person back-office, TBI partners are fully supported by pre- and post-sales operations, commissions analysts and project managers. Solutions engineers and subject matter experts along with training and an award-winning marketing team empower its partners to be the foremost authority to advise and source all of their clients’ technology needs in over 40 countries.
net2phone and P2 Business Solutions Forge Partnership
NEWARK, N.J., July 20, 2020 —net2phone, a global provider of cloud communications solutions to businesses, today announced a partnership with P2 Telecom, LLC (P2 Business Solutions). Through the partnership, P2 Business Solutions, a fast-growing distributor of technology solutions for businesses throughout the USA including mobility, voice, data, VoIP, hardware and managed telecommunications, will offer net2phone’s powerful suite of cloud communications solutions via its extensive agent network.
P2 Business Solutions is a member of the Technology Solutions Xchange (TSX), a consortium of master agents in the telecommunications and cloud space. TSX offers its members an expanded portfolio of connectivity, cloud, hosting, cybersecurity and IoT vendor solutions.
Bill Patchett, Founder & CEO of P2 Business Solutions, and Co-Founder of TSX, said, “net2phone is unique in that they have their own outstanding solution for cloud communications and collaboration and they bring a different layer of support with a channel-centric approach. They can quickly produce quotes and on-board customers with ease, which is crucial to the success of our agents.”
“P2 Business Solutions is renowned for its commitment to technology agents,” said Jonah Fink, President of net2phone. ”We will be working closely with P2 Business Solutions’ distribution network to meet the intensified demand for integrated, un-tethered collaboration solutions across our domestic markets.”
To learn more about net2phone’s communication and collaboration solutions, e-mail net2phone (sales@net2phone.com) or visit net2phone.com.
About net2phone: net2phone’s cloud communications solutions help businesses around the globe succeed through smarter conversations. net2phone is a subsidiary of IDT Corporation (NYSE: IDT), a provider of telecommunications and payment services. To learn more, please visit net2phone.com or connect with us on LinkedIn. Channel partners contact: partner@net2phone.com. Customer contact: sales@net2phone.com.
About P2 telecom, LLC: P2 telecom, LLC is based in Stamford, CT and specializes in providing its customers with mobility, voice, data, VoIP, hardware and managed telecommunications solutions. If you’re an agent interested in working with P2 telecom, please contact Bill Patchett at (203) 564-9016
“Mariano Rivera’s
personal story is the epitome of the American dream. He came to the U.S. from
Panama to pursue a career in baseball and, through hard work and determination,
became a Hall of Famer,” said Shmuel Jonas, CEO of IDT. “Many of our customers
can relate to that theme and we are honored to be working with Mariano to
celebrate the hard work, dedication and winning contributions of our
customers.”
As part of the
partnership, Mr. Rivera will support BOSS Revolution as its spokesperson. He
will be featured in upcoming campaigns across broadcast, print, and digital
media.
Mariano Rivera has
a long relationship with IDT. Since moving to the U.S., Mr. Rivera has used
IDT’s BOSS calling service to stay in touch with his family in Panama and
continues to rely on the service to stay connected with his family and to successfully
manage his business endeavors.
“I’m delighted to
help get the word out about BOSS Revolution,” Mr. Rivera said. “BOSS Revolution provides calling and payment
services to help connect people around the world and enable families to share
resources wherever they are. For
families like mine, that stay close no matter how far we travel, it is great to
have a partner you can trust like BOSS Revolution. That’s why I’ve relied on BOSS Revolution for
many years.”
“Our flagship BOSS
Revolution offerings are focused on serving immigrant communities,” Mr. Jonas
added. “Mariano’s personal history resonates
with anyone who has come to America in pursuit of a better life and a better
future for their family. Mariano’s longtime
personal use of BOSS Revolution enables him to speak from the heart about the
value of IDT’s services.”
IDT Corporation (NYSE: IDT) provides communications and payment services
to individuals and businesses primarily through its Boss Revolution®,
net2phone® and National Retail Solutions® brands. IDT’s wholesale carrier services business is
a leading global carrier of international long-distance calls. For more information on IDT, please visit our
website idt.net.
Contact: Bill Ulrey
IDT
Investor Relations
Phone: (973) 438-3838
E-mail: invest@idt.net
# # #
National Retail Solutions (NRS) Introduces the BR Club Shopping App, Enabling NRS Retailers to Accept Mobile Orders
Independent retailers in the NRS network can sell on the BR Club app for free for 90 days!
NEWARK, N.J., June 8, 2020 – National Retail Solutions (NRS), operator of a leading nationwide point-of-sale (POS) network for independent retailers and convenience stores, today rolled out the BR Club app. NRS retailers can benefit from the app free for 90 days*.
The BR Club app enables NRS independent retailers to offer their customers online ordering for pick-up or delivery. Customers can pay for orders in the app using a credit or debit card, or pay at the store using cash or another payment method. Customers use the app for free.
“Many of our stores have seen large increases in phone orders during the Covid-19 pandemic, but handling so many orders over the phone is not always practical,” said Elie Y. Katz, President of NRS. “Receiving customer orders directly from the BR Club app allows stores to handle simultaneous orders and to efficiently organize and prepare items for pick-up or delivery.”
The BR Club app is directly integrated with the NRS POS system, adding to its ease of use for retailers using that system. The app utilizes each store’s barcode-scanned inventory to automatically sort products into departments, and utilizes the store’s POS price book to provide up-to-date prices. App orders are sent to the store’s POS system where the cashier receives a notification and can print out the order for packing. The POS system’s inventory is automatically adjusted when orders are made on the app.
Consumers can download the app for free from the Apple App Store (iOS) or the Google Play Store (Android). The app will soon be integrated with the popular BR Club Coupon & Rewards program which NRS has been offering to customers at NRS retail locations for over three years.
“Storeowners and their customers will love the BR Club app’s seamless ordering process and find that the app makes it easy for customers to get what they want quickly and safely,” said Jacob Jonas, VP of Mobile for NRS. “The app will help our stores thrive in the current environment while modernizing to better compete in the years ahead.”
To learn more about the NRS POS system and NRS PAY payment processing, visit nrsplus.com or call (833) 289-2767. Current NRS store owners interested in enrolling in the free 90 day offer for the BR Club app should visit: https://nrsmarket.com/br-club-app.
*The BR Club app is free to retailers using the National Retail Solutions point of sale terminal for 90 days. Thereafter, retailers can continue to use the app for a low, flat monthly fee.
About National Retail Solutions: National Retail Solutions (NRS) is the leading point of sale (POS) provider for independently owned convenience, liquor and tobacco stores, with over 8,500 stores nationwide actively using the system for over 35 million transactions per month across the network. The NRS network is rapidly growing, with hundreds of new merchants purchasing the NRS POS system every month. Through NRS PAY credit card processing and associated retail services, NRS empowers independent retailers to modernize and compete. NRS is a subsidiary of IDT Corporation (NYSE: IDT). To learn more, please visit https://nrsplus.com/.
IDT Corporation Reports Third Quarter Fiscal Year 2020 Results
NEWARK, N.J., June 4, 2020 – IDT Corporation (NYSE: IDT) reported net income per diluted share of $0.02 and Non-GAAP earnings per diluted share* of $0.08 on revenue of $321.3 million for the third quarter of FY 2020, the three months ended April 30, 2020.
3Q FY20 HIGHLIGHTS (Results are for 3Q20 and are compared to 3Q19)
In response to the COVID-19 pandemic, IDT employees world-wide safely transitioned to work from home.
COVID-19 had a mixed financial impact during the quarter with BOSS Revolution customers making longer phone calls, sending an increased number of mobile top-ups, and executing more money remittances online. Conversely, sales originating through retailers and channel partners slowed in March and April before beginning to rebound after the quarter close. Carrier Services revenue was impacted by the closure of corporate offices and the decline of commerce globally.
Consolidated revenue decreased 5.8% to $321.3 million. Declines in Carrier Services and BOSS Revolution Calling revenue were partially offset by increased sales of Mobile Top-Up and revenue generated by IDT’s growth initiatives.
Consolidated revenue-less-direct-cost-of-revenue increased 6.9% to $62.5 million, the third consecutive year-over-year quarterly increase. IDT’s higher-margin growth initiatives have been contributing a steadily increasing share of consolidated revenue, and the resulting increase in their margin contribution has more than offset the declining contribution of IDT’s lower-margin core offerings.
net2phone-UCaaS seats increased 54% to 137,000 as of April 30, 2020 as subscription revenue increased 34.6% to $7.7 million. During the quarter, net2phone introduced an integration of its cloud communications offering with Microsoft Teams and a secure video conferencing solution, Huddle (in beta).
BOSS Revolution Money Transfer revenue increased 94.6% to $11.8 million on increased transaction volumes and favorable foreign exchange market conditions.
NRS served 8,800 active retailers on April 30, 2020, an increase from 7,200 a year earlier. NRS’ revenue increased 87.9% to $2.9 million.
REMARKS BY SHMUEL JONAS, CEO “Our team did an incredible job of rapidly transitioning to work from home, and we did not miss a beat during this terrible pandemic. I want to especially thank and recognize our frontline salespeople and delivery teammates for continuing to serve our retailers and channel partners throughout this challenging time.
“Results for the quarter were highlighted by the resilience of our business and by the increased contribution from our higher margin growth initiatives that more than offset the decrease in contribution from our lower margin core offerings.
“Across all of our businesses, we are very focused on adapting to meet the evolving needs of our customers as the pandemic plays out. Our team has done a very good job being responsive and meeting the challenge thus far. However, we remain mindful that current economic conditions, if enduring, will create additional hardship for many of our customers over the coming months.”
CONSOLIDATED RESULTS
Results
(in millions, except EPS)
3Q20
2Q20
3Q19
3Q20 – 3Q19 change (%/$)
Revenue
$321.3
$323.9
$341.3
(5.8)%
Direct cost of revenue
$258.8
$262.7
$282.8
(8.5)%
Revenue less direct cost of revenue
$62.5
$61.2
$58.5
+6.9%
Revenue less direct cost of revenue as a percentage of revenue*
19.4%
18.9%
17.1%
+230 bps
SG&A expense
$52.6
$53.8
$49.5
+6.3%
Depreciation and amortization
$5.2
$5.2
$5.5
(5.2)%
Severance expense
$0.6
$0.5
$0.6
+8.8%
Other operating expense, net
$0.2
$0.4
$2.4
$(2.2)
Income from operations
$3.8
$1.3
$0.4
+$3.4
Adjusted EBITDA*
$9.9
$7.4
$8.9
+$1.0
Net income attributable to IDT
$0.5
$0.9
$2.2
$(1.7)
Diluted earnings per share
$0.02
$0.04
$0.08
$(0.06)
Non-GAAP net income *
$2.0
$2.9
$5.2
$(3.2)
Non-GAAP earnings per diluted share*
$0.08
$0.11
$0.20
$(0.12)
*Throughout this release, Non-GAAP earnings per diluted share, Adjusted EBITDA, and Non-GAAP net income for all periods presented are Non-GAAP measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP. Revenue less direct cost of revenue as a percentage of revenue is a key performance metric. Please refer to the Reconciliation of Non-GAAP Financial Measures and Explanation of Key Performance Metric at the end of this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measure.
RESULTS BY SEGMENT (Results are for 3Q20 and are compared to 3Q19)
Telecom & Payment Services (TPS) IDT’s TPS segment accounted for 96.1% and 96.4% of IDT’s consolidated revenue in 3Q20 and 3Q19, respectively. The segment includes Core and Growth verticals:
Core includes IDT’s three largest communications and payments offerings by revenue: BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the U.S.; Carrier Services, which provides international long-distance termination and outsourced traffic management solutions to telecoms worldwide; and Mobile Top-Up, which enables customers to transfer airtime and bundles of airtime, messaging and data credits to mobile accounts internationally and domestically. Core also includes smaller communications and payments offerings, many in harvest mode.
Growth primarily comprises National Retail Solutions (NRS), which operates a point-of-sale (POS), terminal-based network for independent retailers, and BOSS Revolution Money Transfer, an international money remittance service for customers in the U.S.
net2phone IDT’s net2phone segment accounted for 3.9% and 3.6% of IDT’s consolidated revenue in 3Q20 and 3Q19, respectively. The segment comprises two verticals:
net2phone-UCaaS, a unified cloud communications service for businesses in North and South America and certain other international markets.
net2phone-Platform Services provides telephony services to cable operators and other businesses by leveraging a common technology platform.
Revenue in 3Q20 and comparative periods for all verticals and for the most significant core offerings is provided in the following chart:
Revenue by Segment and Vertical
(in millions)
3Q20
2Q20
3Q19
3Q20-3Q19 change
TPS
Core
$294.1
$301.2
$321.2
(8.4)%
BOSS Revolution Calling
$111.5
$112.8
$120.5
(7.4)%
Carrier Services
$87.3
$101.7
$121.0
(27.8)%
Mobile Top-Up
$85.1
$75.8
$67.6
+26.0%
Other
$10.1
$11.0
$12.2
(17.0)%
Growth
$14.7
$9.8
$7.7
+92.0%
Total TPS
$308.8
$311.0
$328.8
(6.1)%
net2phone
net2phone-UCaaS
$8.1
$7.9
$6.7
+22.3%
net2phone-Platform Services
$4.4
$5.0
$5.8
(23.5)%
Total net2phone
$12.5
$12.9
$12.4
+1.0%
Segment level financial results are summarized in the following chart:
Results by Segment
(in millions)
TPS
net2phone
3Q20
2Q20
3Q19
3Q20
2Q20
3Q19
Revenue
$308.8
$311.0
$328.8
$12.5
$12.9
$12.4
Direct cost of revenue
$256.0
$259.8
$279.4
$2.9
$2.9
$3.3
Revenue less direct cost of revenue
$52.8
$51.2
$49.4
$9.7
$10.0
$9.1
SG&A expense
$39.2
$40.6
$38.1
$11.1
$10.9
$9.0
Depreciation and amortization
$3.1
$2.9
$4.2
$2.1
$2.2
$1.4
Severance expense
$0.6
$0.5
$0.6
–
–
–
Other operating expense, net
–
–
$2.3
$0.4
$0.2
–
Income (loss) from operations
$9.9
$7.1
$4.2
$(3.9)
$(3.3)
$(1.3)
Adjusted EBITDA*
$13.7
$10.6
$11.3
$(1.5)
$(0.8)
$0.1
TPS Segment Takeaways:
The decrease in revenue from TPS’ core offerings continue to reflect long-term secular headwinds in the paid minute calling market. Revenue decreases from BOSS Revolution Calling and Carrier Services were partially offset by increased Mobile Top-Up sales.
The increase in BOSS Revolution Money Transfer revenue was driven by increased transaction volumes and favorable foreign exchange market conditions.
The increase in NRS revenue was driven by growth in monthly subscription fees, advertising sales and an increase in credit card processing customers. NRS increased the number of POS terminals active in its network as of April 30, 2020 to approximately 8,800 from 7,200 a year earlier.
The increase in revenue less direct cost of revenue was driven primarily by contributions from BOSS Revolution Money Transfer, as well as Mobile Top-Up and NRS, which together more than offset declines in other core offerings. The rise in BOSS Revolution Money Transfer contribution resulted from increased transaction volumes and increased foreign exchange revenue derived, in part, from strategies leveraging the strengthened US dollar and other transient exchange market conditions.
net2phone Segment Takeaways:
net2phone-UCaaS revenue increased 22.3% to $8.1 million, led by growth in international and US markets, partially offset by strengthening of the US dollar compared to local currencies in key overseas markets served by net2phone-UCaaS. Subscription revenue (exclusive of equipment sales) increased 34.6% to $7.7 million;
net2phone’s cloud communications offering served 137,000 seats as of April 30, 2020, exclusive of a small number of seats acquired via the RingSouth acquisition in 2Q20, compared to 89,000 a year earlier and 123,000 as of January 31, 2020. Customer base growth slowed in the second half of the quarter, as sales became increasingly difficult as the pandemic spread in key markets.
NOTES ON FINANCIAL STATEMENTS Consolidated results for all periods presented include corporate overhead. Corporate G&A expense decreased to $2.3 million in 3Q20 from $2.4 million in 3Q19.
As of April 30, 2020, IDT held $70.5 million in unrestricted cash, cash equivalents, debt securities and current equity investments. Current assets totaled $291.9 million and current liabilities totaled $308.5 million.
Net cash used in operating activities during 3Q20 was $47.4 million, including the impact of a $46.7 million decrease in customer deposits at IDT’s Gibraltar-based bank, compared to net cash provided by operating activities of $9.3 million in the year ago quarter, including a $4.1 million increase in customer deposits at the bank.
Capital expenditures were $4.2 million and $4.3 million in 3Q20 and 3Q19, respectively.
IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION This release is available for download in the “Investors & Media” section of the IDT Corporation website (https://www.idt.net/investors-and-media) and has been filed on a current report (Form 8-K) with the SEC.
IDT will host an earnings conference call beginning at 5:30 PM Eastern today with management’s discussion of results, outlook and strategy followed by Q&A with investors.
To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from US) or 1-412-902-4243 (international) and request the IDT Corporation call.
A replay of the conference call will be available approximately three hours after the call concludes through June 11, 2020. To access the replay, dial toll free 1-844-512-2921 (from US) or 1-412-317-6671 (internation
al) and provide this replay number: 10144191. A replay will also be accessible via streaming audio at the IDT investor relations website.
ABOUT IDT: IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its Boss Revolution®, net2phone® and National Retail Solutions® brands. IDT’s wholesale carrier services business is a leading global carrier of international long-distance calls. For more information on IDT, please visit our website.
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.
IDT CORPORATION
CONSOLIDATED BALANCE SHEETS
April 30, 2020
July 31, 2019
(Unaudited)
(in thousands)
Assets
Current assets:
Cash and cash equivalents
$ 51,786
$ 80,168
Restricted cash and cash equivalents
114,667
177,031
Debt securities
12,948
2,534
Equity investments
5,716
5,688
Trade accounts receivable, net of allowance for doubtful accounts of $6,286 at April 30, 2020 and $5,444 at July 31, 2019
47,400
58,060
Prepaid expenses
32,713
20,276
Other current assets
26,686
24,704
Total current assets
291,916
368,461
Property, plant and equipment, net
30,436
34,355
Goodwill
12,566
11,209
Other intangibles, net
3,913
4,196
Equity investments
8,569
9,319
Operating lease right-of-use assets
10,307
–
Deferred income tax assets, net
1,795
4,589
Other assets
12,108
11,574
Total assets
$ 371,610
$ 443,703
Liabilities and equity
Current liabilities:
Trade accounts payable
$ 27,738
$ 37,077
Accrued expenses
118,065
127,834
Deferred revenue
37,808
42,479
Customer deposits
114,061
175,028
Other current liabilities
10,860
6,652
Total current liabilities
308,532
389,070
Operating lease liabilities
8,109
–
Other liabilities
1,366
1,076
Total liabilities
318,007
390,146
Commitments and contingencies
Equity:
IDT Corporation stockholders’ equity:
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued
–
–
Class A common stock, $.01 par value; authorized shares-35,000; 3,272 shares issued and 1,574 shares outstanding at April 30, 2020 and July 31, 2019
33
33
Class B common stock, $.01 par value; authorized shares-200,000; 25,961 and 25,803 shares issued and 24,975 and 24,895 shares outstanding at April 30, 2020 and July 31, 2019, respectively
260
258
Additional paid-in capital
276,928
273,313
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 986 a
nd 908 shares of Class B common stock at April 30, 2020 and July 31, 2019, respectively
(52,217)
(51,739 )
Accumulated other comprehensive loss
(7,138)
(4,858)
Accumulated deficit
(160,826 )
(160,763 )
Total IDT Corporation stockholders’ equity
57,040
56,244
Noncontrolling interests
(3,437 )
(2,687)
Total equity
53,603
53,557
Total liabilities and equity
$ 371,610
$ 443,703
IDT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended April 30,
Nine Months Ended April 30,
2020
2019
2020
2019
(in thousands, except per share data)
Revenues
$ 321,336
$ 341,255
$ 985,425
$ 1,053,044
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)
258,839
282,791
801,016
878,661
Selling, general and administrative (i)
52,630
49,518
159,853
150,970
Depreciation and amortization
5,239
5,524
15,718
16,881
Severance
602
553
1,714
553
Total costs and expenses
317,310
338,386
978,301
1,047,065
Other operating expense, net
(234)
(2,420)
(3,402)
(5,805)
Income from operations
3,792
449
3,722
174
Interest income, net
56
177
525
472
Other (expense) income, net
(2,144)
360
(1,360)
(494)
Income before income taxes
1,704
986
2,887
152
(Provision for) benefit from income taxes
(1,319)
1,471
(3,020)
(704)
Net income (loss)
385
2,457
(133)
(552)
Net loss (income) attributable to noncontrolling interests
133
(287 )
70
(888)
Net income (loss) attributable to IDT Corporation
$ 518
$ 2,170
$ (63)
$ (1,440)
Earnings (loss) per share attributable to IDT Corporation common stockholders:
Basic
$ 0.02
$ 0.08
$ (0.00)
$ (0.06)
Diluted
$ 0.02
$ 0.08
/span>
$ (0.00)
$ (0.06)
Weighted-average number of shares used in calculation of earnings (loss) per share:
Basic
26,371
26,263
26,323
24,970
Diluted
26,506
26,263
26,323
24,970
(i) Stock-based compensation included in selling, general and administrative expenses
$ 810
$ 332
$ 3,341
$ 1,212
IDT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended April 30,
2020
2019
(in thousands)
Operating activities
Net loss
$ (133)
$ (552)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization
15,718
16,881
Deferred income taxes
2,912
699
Provision for doubtful accounts receivable
2,282
1,218
Stock-based compensation
3,341
1,212
Other
814
(700)
Change in assets and liabilities:
Trade accounts receivable
8,374
14,045
Prepaid expenses, other current assets and other assets
(13,080)
213
Trade accounts payable, accrued expenses, other current liabilities and other liabilities
(18,894)
(13,032)
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank)
(67,273)
33,086
Deferred revenue
(4,704)
(5,716)
Net cash (used in) provided by operating activities
(70,643)
47,354
Investing activities
Capital expenditures
(11,861)
(13,724)
Payments for acquisitions, net of cash acquired
(450)
(5,526)
Purchases of debt securities and equity investments
(14,790)
(1,007)
Proceeds from maturities and sales of debt securities and redemptions of equity investments
4,317
6,312
Net cash used in investing activities
(22,784)
(13,945)
Financing activities
Distributions to noncontrolling interests
(680)
(1,187)
Proceeds from sale of Class B common stock to Howard S. Jonas
–
13,272
Repayment of other liabilities
(449)
(635)
Proceeds from note payable
10,000
–
Repayment of note payable
(10,000)
–
Repayments of borrowings under revolving credit facility
(1,429)
(3,000)
Proceeds from borrowings under revolving credit facility
1,429
3,000
Proceeds from exercise of stock options
276
–
Repurchases of Class B common stock
(478 )
(3,882)
Net cash (used in) provided by financing activities
(1,331)
7,568
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents
4,012
(2,000)
td class="prngen42">
Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents
(90,746)
38,977
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period
257,199
203,197
Cash, cash equivalents, and restricted cash and cash equivalents at end of period
$ 166,453
$ 242,174
Supplemental schedule of non-cash investing and financing activities
Liabilities incurred for acquisition
$ 375
$ -
Howard S. Jonas’ advance payment used for sale of Class B common stock
$ –
$ 1,500
Reconciliation of Non-GAAP Financial Measures for the Third Quarter Fiscal 2020 and 2019 and Explanation of Key Performance Metric
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT also disclosed, for 3Q20, 2Q20, and 3Q19, Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share, which are non-GAAP measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.
IDT’s measure of Adjusted EBITDA consists of revenue less direct cost of revenues and selling, general and administrative expense. Another way of calculating Adjusted EBITDA is to start with income (loss) from operations, add depreciation and amortization, severance expense, and other operating expense, and deduct other operating gains.
IDT’s measure of non-GAAP net income starts with net income (loss) in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expense, net.
IDT’s measure of non-GAAP earnings per share is calculated by dividing non-GAAP net income by the diluted weighted-average shares.
These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2020 and fiscal 2019 periods.
Management believes that IDT’s Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share measures provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT’s or the relevant segment’s core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share to evaluate operating performance in relation to IDT’s competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting.
Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income (loss), on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.
While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and amortization, is a useful indicator of its current performance.
Severance expense is excluded from the calculation of Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT’s and its segments’ businesses to be focused on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT’s core and continuing operations.
Other operating expense, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share. Other operating expense, net includes legal fees related to Straight Path Communications Inc.’s stockholders’ putative class action and derivative complaint, expense for the indemnification of a net2phone cable telephony customer related to patent infringement claims brought against the customer, and accruals for non-income related taxes related to one of IDT’s foreign entities,. From time-to-time, IDT may incur costs related to non-routine legal and tax matters, however, these matters do not generally occur each quarter. IDT does not believe the gains or losses from these non-routine matters are components of IDT’s or the relevant segment’s core operating results.
The other calculation of Adjusted EBITDA consists of revenue less direct cost of revenues and selling, general and administrative expense. As the other excluded items are
not reflected in this calculation, they are excluded automatically and there is no need to make additional adjustments. This calculation results in the same Adjusted EBITDA amount and its utility and significance is as explained above.
Stock-based compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT’s calculation of non-GAAP net income and non-GAAP earnings per share because management believes this allows investors to make more meaningful comparisons of the operating results per share of IDT’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.
Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income (loss), basic and diluted earnings (loss) per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share may not be comparable to similarly titled measures reported by other companies.
Following are reconciliations of Adjusted EBITDA, non-GAAP net income and non-GAAP earnings per share to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, income (loss) from operations for IDT’s reportable segments and net income (loss) for IDT on a consolidated basis, (b) for non-GAAP net income, net income (loss), and (c) for non-GAAP earnings per share, basic and diluted earnings (loss) per share.
Revenue less direct cost of revenue as a percentage of revenue is a financial metric that measures changes in our revenue relative to changes in direct cost of revenue during the same period. Revenue and direct cost of revenue in this metric are from IDT’s consolidated statements of operations in accordance with GAAP. Revenue less direct cost of revenue as a percentage of revenue is a ratio in which revenue less direct cost of revenue is the numerator and revenue are the denominator. It is useful for monitoring trends in the generation of revenue as well as for evaluating the net contribution of our revenue.
IDT Corporation
Reconciliation of Adjusted EBITDA to Net Income
(unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions
Total IDT Corporation
Telecom & Payment Services
net2phone
Corporate
Three Months Ended April 30, 2020
(3Q20)
Adjusted EBITDA
$ 9.9
$ 13.7
$ (1.5)
$ (2.3)
Subtract (Add):
Depreciation and amortization
5.2
3.1
2.1
–
Severance expense
0.6
0.6
–
–
Other operating expense (gain), net
0.2
–
0.4
(0.1)
Income (loss) from operations
3.8
$ 9.9
$ (3.9)
$ (2.2)
Interest income, net
0.1
Other expense, net
(2.1)
Income before income taxes
1.7
 
; Provision for income taxes
(1.3)
Net income
0.4
Net loss attributable to noncontrolling interests
0.1
Net income attributable to IDT Corporation
$ 0.5
Total IDT Corporation
Telecom & Payment Services
net2phone
Corporate
Three Months Ended January 31, 2020
(2Q20)
Adjusted EBITDA
$ 7.4
$ 10.6
$ (0.8)
$ (2.3)
Subtract:
Depreciation and amortization
5.2
2.9
2.2
–
Severance expense
0.5
0.5
–
–
Other operating expense, net
0.4
–
0.2
0.2
Income (loss) from operations
1.3
$ 7.1
$ (3.3)
$ (2.5)
Interest income, net
0.2
Other income, net
0.6
Income before income taxes
2.1
Provision for income taxes
(1.2)
Net income
0.9
Net loss attributable to noncontrolling interests
–
Net income attributable to IDT Corporation
$ 0.9
IDT Corporation Reconciliation of Adjusted EBITDA to Net Income (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions.
Total IDT Corporation
Telecom & Payment Services
net2phone
Corporate
Three Months Ended April 30, 2019
(3Q19)
Adjusted EBITDA
$ 8.9
$ 11.3
$ 0.1
$ (2.4)
Subtract:
Depreciation and amortization
5.5
4.2
1.4
–
Severance expense
0.6
0.6
–
–
Other operating expense, net
2.4
2.3
–
0.1
Income (loss) from operations
0.4
$ 4.2
$ (1.3)
$ (2.5)
Interest income, net
0.2
Other income, net
0.4
Income before income taxes
1.0
Benefit from income taxes
1.5
Net income
2.5
Net income attributable to noncontrolling interests
(0.3)
Net income attributable to IDT Corporation
$ 2.2
IDT Corporation Reconciliations of Net Income to Non-GAAP Net Income and Earnings per share to Non-GAAP Earnings per share (unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.
3Q20
2Q20
3Q19
Net income
$ 0.4
$ 0.9
$ 2.5
Adjustments (add) subtract:
Stock-based compensation
(0.8)
(1.2)
(0.3)
Severance expense
(0.6)
(0.5)
(0.6)
Other operating expense, net
(0.2)
(0.4)
(2.4)
Total adjustments
(1.6)
(2.0)
(3.3)
Income tax effect of total adjustments
–
–
0.6
1.6
2.0
2.7
Non-GAAP net income
$ 2.0
$ 2.9
$ 5.2
Earnings per share:
Basic
$ 0.02
$ 0.04
$ 0.08
Total adjustments
0.06
0.07
0.12
Non-GAAP – basic
$ 0.08
$ 0.11
$ 0.20
Weighted-average number of shares used in calculation of basic earnings per share
26.4
26.3
26.3
Diluted
$ 0.02
$ 0.04
$ 0.08
Total adjustments
0.06
0.07
0.12
Non-GAAP – diluted
$ 0.08
$  
;0.11
$ 0.20
Weighted-average number of shares used in calculation of diluted earnings per share
IDT Corporation to Report Third Quarter Fiscal Year 2020 Results
NEWARK, N.J., May 29, 2020 – IDT Corporation (NYSE: IDT), a global provider of communications and payment services, has scheduled its report of financial and operational results for the third quarter of its fiscal year 2020 (the three-months ended April 30, 2020) on Thursday, June 4, 2020.
IDT’s earnings release will be issued and posted on the IDT investor relations website (https://www.idt.net/investors-and-media) at approximately 4:30 PM Eastern.
IDT will host an earnings conference call beginning at 5:30 PM Eastern with management’s discussion of results, outlook and strategy followed by Q&A with investors.
To listen to the call and participate in the Q&A, dial toll-free 1-888-348-8417 (from US) or 1-412-902-4243 (international) and request the IDT Corporation call.
A replay of the conference call will be available approximately three hours after the call concludes through June 11, 2020. To access the replay, dial toll free 1-844-512-2921 (from US) or 1-412-317-6671 (international) and provide this replay number: 10144191. A replay will also be accessible via streaming audio at the IDT investor relations website.
About IDT Corporation: IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its Boss Revolution®, net2phone® and National Retail Solutions® brands. IDT’s wholesale carrier services business is a leading global carrier of international long-distance calls. For more information on IDT, please visit our website (https://www.idt.net/).
Powerful, Secure Video Collaboration Tool is Free for net2phone Clients During the COVID-19 Pandemic
NEWARK, N.J., April 23, 2020 — net2phone, a global provider of cloud communications solutions to businesses, today announced the accelerated release of Huddle, a secure, feature-rich, high-definition video conferencing solution that is fully integrated with net2phone’s cloud communications service. net2phone is offering Huddle to its clients worldwide for free during the COVID-19 crisis.
“net2phone has always been a powerful tool for business communication and collaboration,” said Jonah Fink, President of net2phone. “In response to the COVID-19 pandemic, we prioritized development and deployment of Huddle so that our clients can continue to adapt quickly to the profound changes in their markets and work environments.”
Huddle enables presenters to seamlessly share screens and YouTube videos. Participants enjoy audio and video selection control, chat messaging, and the raise-hand option for recognition by the session moderator. Huddle also provides real-time quality control and status updates to session moderators.
All Huddle conferences are fully passcode protected and encrypted for security.
To facilitate collaboration with dispersed employees, partners and customers, Huddle is accessible from any desktop or mobile device. net2phone subscribers can access Huddle simply by logging in through the Huddle website with their net2phone credentials. Invited guests without net2phone or Huddle accounts can participate in Huddle video conferences. The Huddle by net2phone apps for iOS and Android enable Huddle video conferences from mobile devices, and are available free from the App Store and Google Play.
“Huddle’s outstanding voice and video quality excels at bridging distances – bringing colleagues, suppliers and customers together for collaboration whether they are next door or around the globe,” Jonah Fink added. “We’ll continue to add powerful new features and functionality to Huddle with input from our clients globally.”
To learn more about Huddle and enroll for service, visit us here or e-mail: sales@net2phone.com.
About net2phone:
net2phone’s cloud communications solutions help businesses around the globe succeed through smarter conversations. net2phone is a subsidiary of IDT Corporation (NYSE: IDT), a provider of telecommunications and payment services. To learn more, please visit net2phone.com or connect with us on LinkedIn. Channel partners contact: partner@net2phone.com. Customer contact: sales@net2phone.com.
