NEWARK, N.J., Sept. 25, 2019 – IDT Corporation (NYSE: IDT), a global provider of communications and payment services, is scheduled to report financial and operational results for its fourth quarter and full fiscal year 2019 (the three and twelve-month periods ended July 31, 2019) on Thursday, October 3, 2019.

IDT’s earnings release will be issued and posted on the IDT investor relations website (http://ir.idt.net/) 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 two hours after the call concludes through October 10, 2019. To access the replay, dial toll free 1-844-512-2921 (from US) or 1-412-317-6671 (international) and provide this replay number: 10134470.  A replay will also be accessible via streaming audio at the IDT investor relations website (http://ir.idt.net/).

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.

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SOURCE IDT Corporation

NEWARK, N.J., June 5, 2019 – IDT Corporation (NYSE: IDT) reported EPS of $0.15 and Non-GAAP EPS* of $0.20 on revenue of $341.3 million for the third quarter of FY 2019, the three months ended April 30, 2019.

3Q19 HIGHLIGHTS 
(3Q19 results are compared to 3Q18)

Consolidated Results

• Revenue decreased to $341.3 million from $365.4 million;
• Revenue less direct cost of revenue increased to $58.5 million from $58.2 million. Increased margin contributions from IDT’s growth initiatives more than offset the margin impact of decreased revenue from IDT’s core offerings;
• Income from operations increased to $2.7 million from a loss from operations of $1.7 million;
• Adjusted EBITDA* increased to $8.9 million from $8.1 million;
• EPS increased to $0.15 from a loss per share of $0.14;
• Non-GAAP EPS increased to $0.20 from $0.07.

Growth Initiatives

• net2phone’s unified communications as a service (UCaaS) revenue increased 80% to $6.7 million including the impact of the acquisition of Versature, a Canadian UCaaS provider, in 1Q19;
• National Retail Solutions (NRS) revenue increased 32% to $1.5 million. NRS operated approximately 7,200 active terminals at April 30, 2019 compared to roughly 4,600 a year earlier;
• BOSS Revolution international money transfer revenue increased 34% to $6.1 million. Revenue from its direct-to-consumer channel increased 98% to $3.9 million.

REMARKS BY SHMUEL JONAS, CEO OF IDT CORPORATION

“IDT’s third quarter results were consistent with recent trends.  While our revenue was down substantially, we were able to maintain gross profit while continuing to invest in our growth initiatives.

“Adjusted EBITDA increased 10% year over year to $8.9 million in the third quarter, and income from operations increased to $2.7 million from a loss from operations of $1.7 million in the year ago quarter.

“Our growth initiatives continued to perform well.  Net2phone’s unified communications business generated $6.7 million in revenue this quarter compared to $3.7 million a year ago.  As of April 30th, net2phone served 89,000 seats.  National Retail Solutions revenue increased 32% year over year to $1.5 million, and our POS network now serves over 7000 independent retailers around the country.  BOSS Revolution money transfer revenue increased 34% year over year to $6.1 million.  Direct-to-consumer revenue increased 98% year over year and we are now executing well over 300,000 transactions per month from all channels.  Our MVNO continues to emphasize online acquisition.

“Overall, we head into the fourth quarter in a strong position.  We still face challenges on multiple fronts, but our team deserves great credit for the considerable progress we have made diversifying our sources of revenue and margin.”

3Q19 CONSOLIDATED RESULTS 

Notes on Consolidated Results and Balance Sheet
Beginning in 3Q19, certain expenses that were previously included in IDT’s Telecom & Payment Services (TPS) segment were reclassified to Corporate. Comparative results have been reclassified for all periods presented.

Consolidated results for all periods presented include corporate overhead.  Corporate G&A expense was $2.4 million in 3Q19 compared to $2.5 million in 3Q18.

At April 30, 2019, IDT held $79.6 million in unrestricted cash, cash equivalents and debt securities. Current assets totaled $346.4 million and current liabilities totaled $362.3 million.  In 3Q19, IDT reclassified its Gibraltar-based bank’s assets and liabilities from “held for sale” to “held and used” in the consolidated balance sheets for all periods presented.

On August 1, 2018, IDT adopted a change in GAAP related to the classification and presentation of changes in restricted cash in the statement of cash flows and we have conformed prior period results.   Net cash provided by operating activities during 3Q19 was $9.3 million compared to $24.4 million in the year ago quarter.  In the corresponding periods, capital expenditures were $4.3 million and $5.0 million, respectively. 

3Q19 RESULTS BY SEGMENT
(Results are for 3Q19 and are compared to 3Q18 unless otherwise noted).

Beginning with fiscal year 2019, IDT has modified the way it reports its business verticals within its two reporting segments to align more closely with IDT’s business strategy and operational structure, as follows:

Telecom & Payment Services (TPS)
IDT’s TPS segment accounted for 96.4% and 97.5% of IDT’s consolidated revenue in 3Q19 and 3Q18, respectively.  The segment comprises Core and Growth verticals: 

• Core includes IDT’s three largest communications and payments offerings from both a revenue and cash generation perspective: BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the US; 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 friends and family overseas and within the US. TPS Core also includes several smaller communications and payments offerings – many in harvest mode.
• Growth is comprised of NRS’ retailer POS terminal-based services, the BOSS Revolution international money transfer service, and the BOSS Revolution Mobile service.

net2phone
IDT’s net2phone segment accounted for 3.6% and 2.5% of IDT’s consolidated revenue in 3Q19 and 3
Q18, respectively.  The segment comprises two verticals: 

• net2phone-UCaaS is a rapidly growing, global, unified cloud communications offering for business.
• net2phone-Platform Services includes other offerings leveraging a common technology platform to provide cable telephony and other voice services.

Revenue in 3Q19 and comparative periods for all verticals and the most significant core offerings is provided in the following chart:

 

Segment level financial results are summarized in the following chart:

 

TPS Segment Takeaways:
TPS Core:

• TPS revenue less direct cost of revenue decreased by $2.9 million dollars from the year ago quarter to $49.4 million while revenue decreased $27.5 million to $328.8 million. From a margin perspective, decreases in low margin revenue from Carrier Services and BOSS Revolution Calling offerings were substantially offset by a mix shift in Carrier Services traffic to higher margin routes and increased margin contributions from two of the high margin growth initiatives within TPS — BOSS Revolution money transfer and National Retail Solutions;
• Mobile Top-Up revenue increased 8.1% year over year to $67.6 million. In 3Q19, IDT added new Mobile Top-Up corridors, expanded bundled offerings of minutes, text and data and launched partnerships with additional mobile operators overseas.

TPS Growth:

• Revenue generated by IDT’s BOSS Revolution money transfer service increased 34% compared to the year ago quarter, to $6.1 million. Direct-to-consumer sales, which, in the period, contributed approximately 2/3 of money transfer revenues, increased 98% year over year driven by expansion of the service’s users, primarily through the Boss Revolution Money app;
• NRS revenue increased 32% compared to the year ago quarter, to $1.5 million;
• IDT is optimizing its BOSS Revolution mobile offering. Efforts this quarter focused on development of marketing campaigns, training of IDT’s direct to retailer sales force, and improving the user experience.

net2phone Segment Takeaways:

• net2phone-UCaaS revenue increased 80% compared to the year ago quarter to $6.7 million led by rapid expansion in South American markets and solid results from its US channel partner network;
• During 3Q19, net2phone continued to deploy its new proprietary platform with a focus on new US customers. The platform integrates voice, text, messaging and web chat services across devices. net2phone served 89,000 seats at April 30^th, compared to 77,000 at January 31^st and 34,000 at April 30^th of 2018.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION
This release is available for download in the “For Investors” section of the IDT Corporation website (http://idt.net/ir) 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 ET 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 U.S.) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call can be accessed approximately two hours after the call concludes through June 12, 2019, by dialing 1-844-512-2921 (toll-free from the US) or 1-412-317-6671 (international) and providing this replay number: 1
0132103.  A replay will also be available via streaming audio at the IDT investor relations website (www.idt.net/ir).

ABOUT IDT:
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.

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.

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures for the Third Quarter Fiscal 2019 and 2018

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 3Q19, 2Q19, and 3Q18, 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 revenues less direct cost of revenues and selling, general and administrative expense. Another way of calculating Adjusted EBITDA is to start with income from operations, and add depreciation and amortization, severance expense, and other operating expense, net.

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 (loss) by the diluted weighted-average shares.

These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2019 and fiscal 2018 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 reporti
ng at this time.

Management refers to Adjusted EBITDA, as well as the GAAP measures income 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 constructed 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. In fiscal 2019 and fiscal 2018, other operating expense, net primarily included legal fees related to Straight Path Communications Inc.’s stockholders’ putative class action and derivative complaint. In addition, in 2Q19, other operating expense, net included a gain on the sale of a calling card business in Asia. From time-to-time, IDT may incur costs related to non-routine legal and regulatory matters or disposal of certain assets. However, such legal and regulatory matters and disposals do not occur each quarter. IDT does not believe the gains or losses from non-routine legal and regulatory matters or asset sales are components of IDT’s or the relevant segment’s core operating results.

The other calculation of Adjusted EBITDA consists of revenues 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.

 

 

 

 

 

 

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SOURCE IDT Corporation

NEWARK, N.J., March 7, 2019 – IDT Corporation (NYSE: IDT) reported EPS of $0.01 and non-GAAP EPS* of $0.04 on revenue of $349.5 million for the second quarter of FY 2019, the three months ended January 31, 2019.

2Q19 HIGHLIGHTS
(2Q19 results are compared to 2Q18)

Consolidated Results

• Revenue less direct cost of revenue decreased to $58.3 million from $58.7 million;
• Income from operations increased to $1.5 million from a loss from operations of $480 thousand;
• Adjusted EBITDA* increased to $7.4 million from $6.3 million;
• EPS of $0.01 compared to $0.06;
• Non-GAAP EPS increased to $0.04 from $0.00.

Growth Initiatives

• net2phone’s unified communications as a service (UCaaS) revenue increased 86% to $6.0 million including Versature, the Canadian UCaaS provider acquired in 1Q19;
• National Retail Solutions (NRS) revenue increased 56% to $1.5 million. NRS operated 6,600 active terminals at January 31, 2019 compared to 3,800 a year earlier;
• BOSS Revolution international money transfer revenue increased 35% to $5.4 million. Revenue from its direct-to-consumer channel increased 145% to $3.3 million.

REMARKS BY SHMUEL JONAS, CEO OF IDT CORPORATION

“IDT’s technology-driven growth initiatives performed well in the second quarter.

“Revenue generated by net2phone’s unified communications as a service offering increased by 86% compared to the year ago quarter and achieved an annual run rate of over $24 million.  We performed ahead of plan in our South American markets – most notably in Brazil.  Operationally, our priority continues to be the incremental deployment of net2phone’s proprietary technology platform.  Reviews and feedback from customers on the new platform have been positive and enthusiastic.  Also, within net2phone, we are focused on developing a robust direct-to-consumer channel in all of our markets worldwide.

“National Retail Solutions revenue increased 56% in the second quarter to an annual run rate of over 6 million dollars, and its point-of-sale network now comprises over 6,600 active terminals.  We have only begun to tap the potential of this business, and are building-out and optimizing the offerings that will more fully monetize the network’s capabilities. 

“Our international money transfer business surpassed $20 million in annualized-run-rate revenue this quarter.  Direct to consumer sales increased 145% year over year as we expanded our international disbursement network, enhanced our transaction fulfillment technology and intensified marketing.

“We continue to focus on enhancing our profitability while investing in our growth initiatives.  Consolidated revenue decreased by $46.4 million compared to the second quarter 2018 primarily because of a reduction in Carrier Services traffic on marginally profitable routes.  The revenue decrease had a limited impact on margin contribution, and was offset by increased margin contributions from our growth initiatives and by reductions in SG&A expense – primarily generated from within our core business operations.  As a result, we increased income from operations and Adjusted EBITDA compared to both the year ago quarter and the first quarter of this year.”

Notes on Consolidated Results and Balance Sheet
Consolidated results for all periods presented include corporate overhead.  In both 2Q19 and 2Q18, corporate G&A expense was $2.4 million.

At January 31, 2019, IDT held $75.5 million in unrestricted cash, cash equivalents and debt securities. Current assets totaled $341.3 million and current liabilities totaled $361.7 million, inclusive of current assets and current liabilities “held for sale”.  IDT’s intention is to sell its Gibraltar-based bank and it is continuing discussions with potential buyers.  All of the bank’s assets and liabilities at January 31, 2019 and July 31, 2018 are classified as “held for sale” in the consolidated balance sheets.

On August 1, 2018, IDT adopted a change in GAAP related to the classification and presentation of changes in restricted cash in the statement of cash flows. Net cash provided by operating activities during 2Q19 was $29.8 million compared to $21.9 million in the year ago quarter.  In the corresponding periods, capital expenditures were $4.9 million and $5.6 million, respectively. 

2Q19 RESULTS BY SEGMENT
(Results are for 2Q19 and are compared to 2Q18 unless otherwise noted).

For fiscal year 2019, IDT has modified the way it reports its business verticals within its two reporting segments to align more closely with IDT’s business strategy and operational structure, as follows:

Telecom & Payment Services (TPS)
IDT’s TPS segment accounted for 96.7% and 97.8% of IDT’s consolidated revenue in 2Q19 and 2Q18, respectively.  The segment comprises Core and Growth verticals: 

• Core includes IDT’s three largest communications and payments offerings from both a revenue and cash generation perspective: BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the US; 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 friends and family overseas and within the US. TPS Core also includes several smaller communications and payments offerings – many in harvest mode.
• Growth comprises National Retail Solutions’ retailer POS terminal-based services, the BOSS Revolution international money transfer service, and the BOSS Revolution mobile service.

net2phone
IDT’s net2phone segment accounted for 3.3% and 2.1% of IDT’s consolidated revenue in 2Q19 and 2Q18, respectively.  The segment comprises two verticals: 

• net2phone-UCaaS is a rapidly growing, global, unified cloud communications offering for business.
• net2phone-Platform Services includes other offerings leveraging a common technology platform to provide cable telephony and other
  voice services.

Revenue in 2Q19 and comparative periods for all verticals is provided in the following chart:

 

Segment level financial results are summarized in the following chart:

TPS Segment Takeaways:
TPS Core:

• The BOSS Revolution Calling service continues to be impacted by persistent, market-wide trends, including the proliferation of unlimited calling plans offered by wireless carriers and MVNOs and the increasing penetration of free and paid over-the-top voice and messaging services. Minutes-of-use for the BOSS Revolution Calling service declined 11% compared to the year ago quarter, while revenue decreased 7.2% to $122.1 million.
• Carrier Services’ minutes-of-use decreased 10% year over year and revenue declined 25.1% to $127.9 million. Carrier Services’ minutes-of-use and revenue will continue to be impacted over the long term as communications globally transition away from traditional international long-distance voice operators. However, minutes and revenue may fluctuate significantly from quarter-to-quarter, as the Company seeks to maximize gross profit economics rather than sustain minutes-of-use or revenue.

TPS Growth:

• National Retail Solutions (NRS)’ revenue increased 56% compared to the year ago quarter. NRS’ point-of-sale terminal network has achieved sufficient scale to enable new revenue sources that supplement the monthly recurring fees generated by the use of its terminals. These emerging services include out-of-home advertising through the terminals’ consumer facing screen, retail analytics, and credit card processing.
• Revenue generated by IDT’s BOSS Revolution money transfer service increased 35% compared to the year ago quarter. Direct-to-consumer sales increased 145% year over year driven by expansion of the service’s global disbursement network. Direct-to-consumer sales now constitute the majority of money transfer revenue.
• IDT is optimizing its BOSS Revolution mobile offering. Efforts this quarter focused on development of marketing campaigns, training of IDT’s direct to retailer sales force, and improving the user experience.

TPS Financial Results:

• TPS’ income from operations increased 39.1% to $6.2 million. The impact of the $49.1 million reduction in revenue was offset by improved Carrier Services margins and by the continued growth of Mobile Top-Up revenue. SG&A expense decreased 7.5% year over year to $40.4 million reflecting reduced compensation expense partially offset by increased marketing expense. Adjusted EBITDA in 2Q19 increased to $9.6 million from $8.8 million in 2Q18.

net2phone Segment Takeaways:

• net2phone-UCaaS revenue increased 86% compared to the year ago quarter driven by the acquisition of Canadian UCaas provider Versature, growth in South American markets, expansion to Mexico, and additions to its US channel partner network.
• During 2Q19, net2phone continued to deploy its new proprietary platform. The platform integrates voice, text, messaging and web chat services across devices. net2phone expects that the unified communications functionality afforded by the new platform will become a key driver of customer acquisition.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION
This release is available for download in the “For Investors” section of the IDT Corporation website (http://idt.net/ir) 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 ET 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 U.S.) or 1-412-902-4243 (international) and request the IDT Corporation call.

A recording of the conference call can be accessed beginning approximately two hours after the call concludes through March 14, 2019 by dialing 1-844-512-2921 (toll free from the US) or 1-412-317-6671 (international) and providing this PIN code: 10128968.  The recording will also be available via streaming audio at the IDT investor relations website (www.idt.net/ir) following the call.

ABOUT IDT:
IDT Corporation (NYSE: IDT) provides communications and payment services to individuals and businesses primarily through its flagship Boss Revolution^&#174
; 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.

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.

 

 

 

 

Reconciliation of Non-GAAP Financial Measures for the Second Quarter Fiscal 2019 and 2018

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 2Q19, 1Q19, and 2Q18, Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) 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 revenues 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, and add depreciation and amortization, severance expense, and other operating expense, net.

IDT’s measure of non-GAAP net income (loss) starts with net income (loss) in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expense, net, and subtracts the income tax benefits from The Tax Cuts and Jobs Act. 

IDT’s measure of non-GAAP earnings (loss) per share is calculated by dividing non-GAAP net income (loss) by the diluted weighted-average shares.

These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2019 and fiscal 2018 periods.

Management believes that IDT’s Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) 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 (loss) and non-GAAP earnings (loss) 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 at this time.

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 constructed 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 (loss) and non-GAAP earnings (loss) 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 (loss) and non-GAAP earnings (loss) per share. In fiscal 2019 and 2018, other operating expense, net primarily included legal fees related to Straight Path Communications Inc.’s stockholders’ putative class action and derivative complaint. In addition, in 2Q19, other operating expense, net included a gain on the sale of a calling card business in Asia. From time-to-time, IDT may incur costs related to non-routine legal and regulatory matters or disposal of certain assets. However, such legal and regulatory matters and disposals do not occur each quarter. IDT does not believe the gains or losses from non-routine legal and regulatory matters or asset sales are components of IDT’s or the relevant segment’s core operating results.

The other calculation of Adjusted EBITDA consists of revenues 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 (loss) and non-GAAP earnings (loss) 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.

In 2Q18, IDT recorded an income tax benefit o
f $3.3 million for its anticipated AMT credit refund due to The Tax Cuts and Jobs Act enacted in December 2017. This income tax benefit is excluded from IDT’s calculation of non-GAAP net income (loss) and non-GAAP earnings (loss) per share because the benefits were not directly related to the current results of IDT’s core operations.

Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) 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 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 (loss) and non-GAAP earnings (loss) per share may not be comparable to similarly titled measures reported by other companies.

Following are reconciliations of Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP earnings (loss) 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 (loss), net income (loss), and (c) for non-GAAP earnings (loss) per share, basic and diluted earnings per share.

 

 

 

 

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SOURCE IDT Corporation

NEWARK, N.J., Feb. 20, 2019 – IDT Corporation (NYSE: IDT), a global provider of communications and payment services, is scheduled to report financial and operational results for the second quarter of its 2019 fiscal year (the three months ended January 31, 2019) on Thursday, March 7, 2019.

IDT’s earnings release will be issued and posted on the IDT investor relations website (www.idt.net/ir) 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 U.S.) or 1-412-902-4243 (international) and request the IDT Corporation call.

A replay of the conference call can be accessed approximately two hours after the call concludes through March 14, 2019, by dialing 1-844-512-2921 (toll-free from the US) or 1-412-317-6671 (international) and providing this replay number: 10128968.  A replay will also be available via streaming audio at the IDT investor relations website (www.idt.net/ir).

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.

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SOURCE IDT Corporation

NEWARK, N.J., Feb. 6, 2019 — IDT Corporation (NYSE: IDT), a global provider of communications and payment services, held an investor day on Tuesday, February 5, 2019 at the New York Stock Exchange.

IDT’s management discussed the ongoing transformation within IDT’s core businesses and investment initiatives.  The presentation highlights the early success of IDT’s Net2Phone subsidiary’s unified communications as a service (UCaaS) business, as well as Net2Phone’s market opportunity, strategy and outlook.  The IDT and Net2Phone management teams held a Q&A with investors following the presentation.

The IDT investor day presentation slides and webcast are now available here.

About IDT:
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.

 

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SOURCE IDT Corporation

NEWARK, N.J., Jan. 22, 2019 – Net2Phone, a global provider of unified communications solutions to businesses, today announced that Sandler Partners, “America’s Fastest Growing Distributor of Connectivity and Cloud Services,” will represent Net2Phone’s unified communications as a service (UCaaS) and SIP Trunking offerings through its 7,000 technology sales partners across North America.

The new partnership will enable Sandler’s technology partners to provide Net2Phone’s communications solutions to enterprise clients who demand all the advantages of unified communications while retaining a localized look and feel for all their offices globally.

Jonah Fink, President of Net2Phone, said, “Sandler Partners’ extraordinary team of technology sales partners is highly regarded for its ability to identify the optimal solution for their clients.  Net2Phone’s UCaaS and SIP Trunking services provide enterprise users with a truly localized communications service featuring local numbers in 70+ countries and more than 300 cities.  And our global infrastructure means that local calls stay local with ultra-low latency.  Net2Phone helps organizations to retain their local identities while accessing all the power and versatility of the cloud across their enterprise.”

“As the leading master agency in enabling complex communications and IT solutions for multilocation and multinational enterprises, Net2Phone’s SIP Trunking and UCaaS solutions are well suited for our clients with an international reach,” said Alan Sandler, Managing Partner at Sandler Partners. “Net2Phone provides great functionality, and access to local phone numbers so that our clients can leverage the power of unified communications not only domestically, but on a global scale.”

Net2phone’s UCaaS service is powered by a proprietary platform that seamlessly integrates voice, text, messaging and web chat services. Team members can manage all of their communications from any device – transferring conversations seamlessly from PCs, to office phones, to mobile devices via net2phone’s iOS and Android apps.

Net2Phone’s UCaaS and SIP Trunking offerings feature robust VoIP functionality and flat-rate plans that include unlimited in-country calling and unlimited international calls to the US and 23+ other popular destination countries as well as free, expert, local support.

About net2phone:
net2phone provides unified communications solutions that are revolutionizing the way businesses communicate and collaborate – internally and externally – around the globe. 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, or email partner@net2phone.com.  

About Sandler Partners:
Sandler Partners is America’s Fastest Growing Distributor of Connectivity & Cloud Services. In 2018, Sandler Partners was named to the Inc. 5000 list of America’s Fastest Growing Private Companies for the ninth straight year. We deliver best-in-class cloud, colo, mobility and continuity solutions from 200+ suppliers through a network of more than 7,000 expert technology sales partners – agents, VARs and MSPs – to thousands of small, medium and enterprise organizations. With our extensive portfolio, 60+ power closers, solutions team and proprietary partner portal, we enable our partners to deliver a range of communications and IT services – from complex multiservice solutions for multilocation enterprises to simple but critical connections for single location startups and small businesses. For more information, visit www.sandlerpartners.com.

 

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SOURCE net2phone

NEWARK, N.J., Jan. 7, 2019 — IDT Corporation (NYSE: IDT), a global provider of communications and payment services, has scheduled an investor day on Tuesday, February 5, 2019 in New York City.

IDT’s management team including Howard Jonas (Chairman), Shmuel Jonas (CEO), Bill Pereira (COO) and Marcelo Fischer (CFO) will discuss the ongoing transformation of IDT’s business with a particular focus on net2phone, IDT’s fast-growing provider of cloud-based communications services for businesses.  Management’s presentation will be followed by Q&A with investors.

The IDT Investor Day will be held at the New York Stock Exchange from 8:30 to 11:00 AM.  Interested investors and analysts can contact the company via email (invest@idt.net) for details and registration.  To comply with NYSE security procedures, advance registration is required. 

The IDT Investor Day presentation will be webcast live beginning at approximately 9:00 AMhere.  A recording will be available for playback through the same URL during and following the event.

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.

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.

 

 

 

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SOURCE IDT Corporation

NEWARK, N.J., Dec. 7, 2018 – IDT Corporation (NYSE: IDT) announced today that BOSS Revolution, its flagship brand for international prepaid calling, mobile top-up and money transfer services, will offer special promotions on international calling during the holiday season and free photos with Santa Claus at BOSS Revolution retailers around the country.

BOSS Revolution’s special holiday promotions make it more affordable than ever to bring family and loved ones living outside the United States closer:

• Upon joining BOSS Revolution any weekend in December, new customers will receive $2 of free calling.
• BOSS Revolution Club members will get an additional 10% bonus when recharging $5 or more (up to $100) on December 24^th and 31^st. Mobile app customers will also get an extra 10% on those two days.

To help families celebrate the holiday season, select BOSS Revolution retailers will host photo sessions with Santa on Saturday, December 15^th or Sunday, December 16^th.  BOSS Revolution customers can meet Santa and have their free picture taken with him, and then share this moment on their social networks directly from the photo booth using the hashtag #BossSantaDay.

“We are very excited to be part of our customers’ Christmas celebrations and to offer families the opportunity to get their picture with Santa,” said Jessica Poverene, Vice President of Marketing for BOSS Revolution. “These sessions can be expensive especially when families are saving to buy presents for their children, family and friends. As part of our ongoing support to the community, we are offering these visits and pictures with Santa completely free, so that everyone can have a family picture during this holiday season.”

The free photo sessions with Santa will be offered at select BOSS Revolution retailers in the following states:  New York, New Jersey, Virginia, Maryland, Florida, California, Georgia, Massachusetts, and Texas (Dallas and Houston). Please visit the http://www.promobr.com/ for participating store locations, dates and times.

BOSS Revolution services are available at more than 40,000 retailers, through the BOSS Revolution Calling and BOSS Revolution Money apps (available free on iTunes and Google Play) and through the BOSS Revolution website www.bossrevolution.com. Follow BOSS Revolution on Facebook and Twitter.

ABOUT IDT:
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.

 

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SOURCE IDT Corporation

NEWARK, N.J., Dec. 6, 2018 — net2phone, a rapidly growing global provider of unified cloud communications solutions, was named ‘VoIP Supplier of the Year’ by the Telecom Consulting Group (TCG) during their 2018 Channel Source event in Miami.   TCG is one of the most experienced and largest master agencies in the United States with over 3400 agents nationwide.

“It is a special honor to be selected as the supplier of the year by TCG – both because the TCG organization is so highly regarded and because it was just two years ago that we began working with TCG,” said Jonah Fink, President of net2phone.  “In that short time, the outstanding quality of our cloud communications solution and our focus on service to the channel have enabled us to build an extremely productive relationship with TCG and its nationwide agent organization.”

net2phone’s cloud communication solution provides an integrated communications suite featuring powerful collaboration tools such as voice, messaging, and chat, plus unlimited domestic and international calling to 23+ countries — all for a low, flat monthly rate. net2phone’s commitment to TCG includes rapid quote turn-around, industry leading SPIFFs and evergreen residuals.

“Simply put, net2phone has risen to the occasion and embedded themselves with our partners and channel managers nationwide,” said Kevin Zimmerman, Vice President of National Recruitment. “Using a ‘sell with’ model has proven to be effective as we are both 100% channelized businesses. The net2phone partner program provides amazing pricing and channel leading commissions! These characteristics make it easy for our partners to sell net2phone. We have placed our entire faith and trust into the net2phone team, and we’re proud that they are a part of the growing ‘TCG family’.”

About net2phone:
net2phone provides unified communications solutions that are revolutionizing the way businesses communicate and collaborate – internally and externally – around the globe. 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, or email partner@net2phone.com. 

About TCG:
Telecom Consulting Group is a National Master Agency based out of Fort Lauderdale, FL and has been in business for 28 years. TCG offers hands on support and excellent residual commission paid for as long as the customer stays on service. TCG passes through 100% of the carrier bonuses to their agents, and TCG doesn’t have quotas. TCG has over 3400 nationwide agents and 15 channel managers across the country. TCG offers over 120 different carrier options for their agents to sell.

TCG has an outstanding back office to serve their agents. They specialize in COAX cable, Metro Ethernet, Hosted VoIP, PRI, Analog lines, dynamic T1’s, SIP, 3G/4G Wireless Internet, and numerous Cloud services. TCG gives their agents access to the best in breed Cable Companies, CLEC’s, LECs, and Hosted VoIP Carriers. At TCG we support all business from our partners whether a single POTS, small COAX account, all the way to large multi-location customers!

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SOURCE net2phone