net2phone’s Cloud Communications Service Now Integrates with Microsoft Teams
Integration Supports Communications in Dispersed Workforce Environments
NEWARK, N.J., March 3, 2020 — net2phone, a fast growing, global provider of cloud communications solutions to businesses, today announced that Microsoft Teams users can now access the advanced capabilities of net2phone’s world-class communication services while directly inside the Teams environment.
“Preparations for a potential Covid-19 pandemic are accelerating the need for remote work environments and reinforcing the use case for common platform collaborative services like Microsoft Teams,” said Jonah Fink, President of net2phone. ”Businesses evolving their digital work environment can marry Microsoft Teams with net2phone’s cloud PBX application to support remote employees with features including net2phone’s unlimited global calling from within the Microsoft Teams environment.”
The net2phone integrated solution leverages the power of the cloud to embed its voice applications into the Microsoft Teams environment without added equipment or infrastructure. The installation and integration processes are automated and fully managed.
Once on board, the ‘Microsoft Teams Direct Routing + net2phone Cloud PBX’ package provides 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.
“net2phone continues to think globally and implement locally by offering our solutions uniformly across our markets,” added Jonah Fink. ”Enterprises utilizing Microsoft Teams in the US, Canada, Brazil, Mexico, Argentina, Colombia, Spain and Hong Kong will now be able to take advantage of net2phone’s unbeatable communications capabilities within Microsoft Teams.”
To take advantage of the integration of net2phone with Microsoft Teams, visit us at net2phone.com or email: 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, connect with us on LinkedIn. Channel partners contact: partner@net2phone.com. Customer contact: sales@net2phone.com.
National Retail Solutions Partners to Boost New York Bodegas
National Retail Solutions, City Harvest, United Bodegas of America and the New York City Economic Development Corporation Kick-Off Program for New York City’s Family-Owned Bodegas
NEWARK, N.J., Feb. 27, 2020 – National Retail Solutions (NRS), the operator of a leading point-of-sale (POS) network for independent retailers, announced that it will continue its exciting partnership with several leading institutions in New York City to support the city’s bodegas and independent, family-owned convenience stores.
NRS, City Harvest – New York City’s largest food rescue organization, the United Bodegas of America (UBA) and the New York City Economic Development Corporation (NYC/EDC) co-sponsored a Lunch & Learn program last week, for owners of New York City’s bodegas and convenience stores.
Last week’s Lunch & Learn session was held at Fairway Market’s facility in the Bronx. The program included presentations by NRS on its POS+ services for bodega owners, by City Harvest on expanded offerings of fresh and nutritious foods to-go, and by NYC/EDC on their programs and incentives for independent small businesses.
“New Yorkers appreciate the many ways in which neighborhood bodegas and convenience stores contribute to our local communities,” said Elie Y. Katz, founder & CEO of NRS. “These stores are places where neighbors take time to talk, catch up on local happenings and find foods and supplies for their favorite meals. The bodega owners who joined us at the first Lunch & Learn were excited to learn about powerful tools and strategies to help them build stronger businesses and compete successfully against larger retail chain stores.”
NRS operates a robust POS network plus NRS PAY merchant services for independent retailers across the U.S. Over 8,000 retailers use NRS’ POS platform to organize and manage their business, attract new customers and increase their revenue.
At the Lunch & Learn, NRS team members introduced their POS plus network with premium features and check-out solutions tailored for bodega owners. The Rev. Eric Cosentino, who serves on the Board of Directors of IDT Corporation (NYSE: IDT), the parent company of NRS, said, “IDT is here to help bodega owners and smaller retailers. If there is something they need and we can provide it, we’ll always go the extra mile.”
Radames Rodriguez, President of United Bodegas of America (UBA) and a bodega owner in the Bronx, said, “Running a bodega in New York is a labor of love. It’s a tough business. We need better tools and offerings to bring in and retain new customers, and to operate more profitably. I hope that every bodega owner will take the time to learn how the UBA’s partnership with National Retail Solutions, City Harvest, and the City’s Economic Development Corporation can help our bodegas expand and thrive in New York.”
Last week’s Lunch & Learn is the first in a series for bodegas and other neighborhood retailers, according to Elie Y. Katz. “We are deeply committed to helping New York City’s bodegas prosper for the long run, and there is a lot going on to help these retailers prosper and expand. We are working with our co-sponsors on a second event to be held this summer that will introduce more fresh and interesting approaches for retailers. We welcome new organizations interested in participating in our next event to contact us. Please stay tuned for additional details.”
About National Retail Solutions (NRS):
NRS operates a point-of-sale (POS) terminal-based platform plus NRS PAY credit card processing for independent retailers and bodega owners nationwide. The platform provides a robust portfolio of tools to help these retailers compete more effectively, including inventory tracking, store statistics, user management, one-touch Boss Revolution® PIN-less recharge, and integration with the BR Club customer loyalty program. Consumer packaged goods (CPG) suppliers are able to leverage the NRS platform to provision promotions, coupons and special offers to independent retailers and their predominantly urban customer bases nationwide. NRS is a subsidiary of IDT Corporation (NYSE: IDT).
IDT Corporation to Report Second Quarter Fiscal Year 2020 Results
NEWARK, N.J., Feb. 26, 2020 —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 fiscal year 2020 (the three-months ended January 31, 2020) on Thursday, March 5, 2020.
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 three hours after the call concludes through March 12, 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: 10139692. 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 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, visit www.idt.net.
Attention Independent Grocery and Bodega Owners of NYC: Boost Your Business by Expanding Your Fresh Foods to Go!
NEWARK, N.J., Feb. 6, 2020 —National Retail Solutions (NRS), the operator of a leading point-of-sale (POS) network for independent retailers, announced today that it is sponsoring a Lunch & Learn for New York City’s bodega, grocery and convenience store owners. The Lunch & Learn is a great opportunity for independent store owners to learn how to grow their businesses with City Harvest’s fresh food program, subsidized point-of-sale (POS) systems and related tax benefits.
The Lunch and Learn is sponsored by NRS, City Harvest – NYC’s premier food rescue organization, United Bodegas of America (UBA), and the New York City Economic Development Corporation (NYC/EDC).
WHO: NYC bodega owners and other independent grocery and convenience retailers
WHAT: Lunch & Learn: How to Boost Your Business and Expand Your Fresh Foods to Go
WHERE: Fairway Market’s Facility, 400 Walnut Avenue, Bronx, NY 10454
WHEN: Thursday, February 20, 2020 from 10:00 a.m. to 12:00 noon
SPONSORS: National Retail Solutions, City Harvest, UBA and NYC/EDC
HOW: Reserve your place at the Lunch & Learn by contacting Roque Azcona of NRS (973/438-5048) or Elizabeth Vispo of City Harvest (347/203-7498)
“Bodegas and other neighborhood grocers feed millions of New Yorkers every day and are a crucial part of New York City’s food supply chain,” said Elie Y. Katz, President of NRS. “We are delighted to participate in this event and help these store owners provide New Yorkers with fresher, locally grown and nutritious foods.”
NRS operates a leading POS network for independent retailers in the US. Over 8,000 retailers use its POS platform to process transactions, track sales and inventory, bring in new customers and manage their businesses more efficiently and easily.
In conjunction with the Lunch & Learn, NRS will demonstrate its POS terminals and offer them at subsidized low rates to bodega, grocery and convenience store owners in the five boroughs.
“Bodegas and other independent retailers are hungry for tools to help them compete against large retail chains and big box stores,” Katz added. ”Our POS platform helps bodegas and convenience stores to boost sales and gain new customers. Plus, our mobile app makes it easy for store owners to manage their operations, whether they are in the store, at home or on the road.”
About National Retail Solutions (NRS):
NRS operates a point-of-sale (POS) terminal-based platform plus NRS PAY credit card processing for independent retailers and bodega owners nationwide. The platform provides a robust portfolio of tools to help these retailers compete more effectively, including inventory tracking, store statistics, user management, one-touch Boss Revolution® pinless recharge, and integration with the BR Club customer loyalty program. Consumer packaged goods (CPG) suppliers are able to leverage the NRS platform to provision promotions, coupons and special offers to independent retailers and their predominantly urban customer bases nationwide. NRS is a subsidiary of IDT Corporation (NYSE: IDT).
net2phone SIP Trunking Solutions Certified by Mitel
NEWARK, N.J., Dec. 30, 2019 – net2phone, a global provider of cloud communications solutions to businesses, today announced that its SIP Trunking solution has achieved certification from Mitel. As a Mitel-certified SIP provider, net2phone has joined the Mitel Solutions Alliance (MSA) that supports services that are fully compatible with Mitel’s enterprise, cloud and mobile communications.
“net2phone SIP Trunking solution is now certified to be interoperable with Mitel IP-PBX communications systems,” said Jonah Fink, President of net2phone. “Businesses with Mitel IP-PBXs can count on net2phone to provide a seamlessly integrated voice solution featuring unlimited calling, virtual phone numbers, and an enhanced communications experience.
net2phone’s SIP Trunking solution includes:
Unlimited domestic calling to landlines and mobile phones throughout the United States, Canada, Mexico, and India;
Unlimited calling to landlines in 28 additional countries (Argentina, Austria, Brazil, Chile, Colombia, Costa Rica, Cyprus, Denmark, Dominican Republic, France, Germany, Greece, Hungary, Ireland, Israel, Italy, Netherlands, Norway, Panama, Peru, Portugal, Romania, Singapore, Slovakia, Spain, Sweden, United Kingdom, and Venezuela) and to Puerto Rico;
International virtual phone numbers for over 300 cities in 50 countries;
Support for both high quality and low bandwidth codecs (G.711 and G.729);
Enhanced security incorporating four complementary types of authentication.
“Building and maintaining the right technology relationships to deliver customers high-value integrated solutions is a critical component for success in the business communications marketplace,” said David Lowenstein, Director of Business Development for the Mitel Solutions Alliance. “Mitel works with best-of-breed companies like net2phone to deliver complete solutions that address the business challenges of our customers.”
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, connect with us on LinkedIn, or email partner@net2phone.com.
net2phone Acquires Spanish UCaaS Provider RingSouth Europa
Acquisition Marks Expansion into European Business Communications Market
NEWARK, N.J., Dec. 17, 2019 – net2phone, a global provider of cloud communications solutions to businesses, today announced that it has acquired RingSouth Europa (RingSouth), a business communications provider headquartered in Murcia, Spain.
Jonah Fink, President of net2phone, said, “RingSouth is a highly regarded provider of cloud communications services to Spanish businesses with a roster of corporate and institutional clients including the University of Murcia. We look forward to pursuing the tremendous opportunities for further expansion in Spain and other European markets.”
RingSouth was founded in Murcia in the Southeast of Spain in 2005. Since launch, the company has expanded its footprint to Madrid and beyond while achieving notable enterprise customer wins. Its EcoVoz platform offers advanced features and facilitates integration with popular CRM and ERP solutions.
RingSouth’s General Manager, Jonathan Garcia, said, “We are excited to have net2phone’s formidable backing as we expand our footprint in the business communications market. Businesses throughout Europe are eager to take advantage of the powerful capabilities of communications in the cloud. We are in an excellent position to serve this rapidly growing market.”
net2phone’s acquisition of RingSouth follows its 2018 acquisition of Canadian UCaaS provider Versature. In addition to addressing the Spanish market through RingSouth, net2phone now offers cloud communications services to businesses throughout North America – the U.S., Canada and Mexico – and in the three largest South American markets – Brazil, Argentina and Colombia.
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, connect with us on LinkedIn, or email partner@net2phone.com.
IDT Corporation to Present at LD Micro Investor Conference
NEWARK, N.J., Dec. 10, 2019 – IDT Corporation (NYSE: IDT), a global provider of communications and payment services, today announced that its Chief Executive Officer, Shmuel Jonas, will present at the LD Micro Main Event XII investor conference in Bel Air, CA – on Wednesday, December 11th, at 1:00 PM PST.
The IDT investor presentation slides will be available on the presentations page of the IDT investor relations website at the time of the presentation and will be filed in a Form 8-K with the SEC. The presentation will not be webcast.
The LD Micro Main Event XII will be held at the Luxe Sunset Bel Air Hotel from December 10th-12th. It is one of the largest and most influential independent micro-cap conferences. This year, the conference will host more than 250 innovative companies in technology, biotech, pharmaceuticals, mining, energy and other sectors.
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, visit www.idt.net.
IDT Corporation Reports First Quarter Fiscal Year 2020 Results
NEWARK, N.J., Dec. 5, 2019 — IDT Corporation (NYSE: IDT) reported a loss per diluted share of $0.06 and Non-GAAP earnings per diluted share* of $0.10 on revenue of $340.2 million for the first quarter of FY 2020, the three months ended October 31, 2019.
1Q20 OPERATIONAL HIGHLIGHTS (Results are for 1Q20 and are compared to 1Q19)
net2phone’s cloud-based Unified Communications as a Service (UCaaS) offering served 112,000 seats at October 31st compared to 68,000 a year earlier. Subscription revenue increased 87.0% to $5.9 million. The results include the acquisition of Versature, a Canadian UCaaS provider, during 1Q19;
National Retail Solutions (NRS) had deployed over 10,600 point-of-sale (POS) terminals with independent retailers nationwide by October 31st of which approximately 8,200 were active compared to 5,900 a year earlier. NRS revenue increased 93.4% to $2.4 million;
BOSS Revolution Money Transfer transactions increased to 1.1 million from 715,000 in the year ago quarter. Revenue increased 55.8% to $7.4 million with solid growth from both direct-to-consumer (DTC) and retail channels. DTC revenue increased 68.9% to $4.6 million.
REMARKS BY SHMUEL JONAS, CEO “IDT delivered consistent results in the first quarter of our 2020 fiscal year highlighted by expansion of our higher-margin growth initiatives and our lower margin Mobile Top-Up services offset by decreases of our BOSS Revolution Calling and Carrier Service revenues in line with our expectations.
“In IDT’s growth initiatives, net2phone’s cloud-based UCaaS offering increased revenue 50% year-over-year, and 35% exclusive of our acquisition of Versature. National Retail Solutions turned in a strong quarter, increasing revenue by 93% year-over-year. NRS’ advertising, data analytics and credit card processing offerings drove the expansion as they began to gain traction in their respective markets. BOSS Revolution Money Transfer boosted revenue by 56% year-over-year to $7.4 million. DTC revenue increased 69% year-over-year to $4.6 million while retail channel revenue increased 38% to $2.8 million.
“In IDT’s Core operations, Mobile Top-Up revenue increased 18% year-over-year to $76.8 million boosted by expanded sales of bundled offerings.
“Expansion of our growth initiatives and Mobile Top-Up drove an increase in gross profit for the fourth consecutive quarter, while Adjusted EBITDA* climbed to $7.3 million from $7.1 million a year ago.”
CONSOLIDATED RESULTS
Results
(in millions, except EPS)
1Q20
4Q19
1Q19
1Q20 – 1Q19 change (%/$)
Revenue
$340.2
$356.1
$362.3
(6.1)%
Direct cost of revenue
$279.5
$295.4
$304.7
(8.3)%
Revenue less direct cost of revenue
$60.8
$60.8
$57.6
+5.5%
Revenue less direct cost of revenue as a percentage of revenue
17.9%
17.1%
15.9%
+200 BP
SG&A expense
$53.5
$53.4
$50.6
+5.8%
Depreciation and amortization
$5.3
$5.8
$5.6
(5.3)%
Severance expense
$0.6
$0.9
–
$(0.6)
Other operating expense, net
$(2.8)
$(1.9)
$(1.3)
$(1.5)
(Loss) income from operations
$(1.4)
$(1.2)
0.2
$(1.6)
Adjusted EBITDA*
$7.3
$7.4
$7.1
+$0.2
Net (loss) income attributable to IDT
$(1.5)
$1.6
$(2.3)
+$0.8
Diluted (loss) earnings per share
$(0.06)
$0.06
$(0.10)
+$0.04
Non-GAAP net income (loss)*
$2.8
$4.1
$(0.5)
+$3.3
Non-GAAP earnings (loss) per share*
$0.10
$0.15
$(0.02)
+$0.12
*Throughout this release, Non-GAAP earnings (loss) per share, Adjusted EBITDA, and Non-GAAP net income (loss) 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. Please refer to the Reconciliation of Non-GAAP Financial Measures at the end of this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measure.
Notes on Consolidated Results and Balance Sheet Consolidated results for all periods presented include corporate overhead. Corporate G&A expense decreased to $2.2 million in 1Q20 from $2.3 million in 1Q19.
At October 31, 2019, IDT held $77.8 million in unrestricted cash, cash equivalents, debt securities and current equity investments. Current assets totaled $373.7 million and current liabilities totaled $396.4 million.
Net cash used in operating activities during 1Q20 was $5.0 million, including the impact of a $1.8 million increase in customer deposits at IDT’s Gibraltar-based bank, compared to net cash provided by operating activities of $8.2 million in the year ago quarter, including a $5.6 million increase in customer deposits at the bank. The year-over-year decrease in cash-flow from operations is mostly due to the timing of prepayments made to disbursement agents in the BOSS Revolution Money Transfer business.
Capital expenditures were $3.9 million and $4.5 million in 1Q20 and 1Q19, respectively.
RESULTS BY SEGMENT (Results are for 1Q20 and are compared to 1Q19)
Telecom & Payment Services (TPS) IDT’s TPS segment accounted for 96.3% and 97.1% of IDT’s consolidated revenue in 1Q20 and 1Q19, 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 comprises National Retail Solutions, which operates a POS, terminal-based network for independent retailers, BOSS Revolution Money Transfer, an international money remittance service for customers in the U.S., and BOSS Revolution Mobile, a mobile virtual network operator.
net2phone IDT’s net2phone segment accounted for 3.7% and 2.9% of IDT’s consolidated revenue in 1Q20 and 1Q19, 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 1Q20 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)
1Q20
4Q19
1Q19
1Q20-1Q19 change
TPS
Core
$317.8
$334.4
$345.8
(8.1%)
BOSS Revolution Calling
$116.2
$124.5
$123.5
(5.9%)
Carrier Services
$113.5
$123.1
$142.2
(20.2%)
Mobile Top-Up
$76.8
$74.8
$65.3
+17.6%
Other
$11.2
$11.9
$14.8
(23.8%)
Growth
$9.8
$8.9
$6.0
+63.1%
Total TPS
$327.6
$343.3
$351.8
(6.9%)
net2phone
net2phone-UCaaS
$7.2
$7.0
$4.8
+50.3%
net2phone-Platform Services
$5.4
$5.9
$5.7
(4.5%)
Total net2phone
$12.6
$12.9
$10.5
+20.6%
Segment level financial results are summarized in the following chart:
Results by Segment
(in millions)
TPS
net2phone
1Q20
4Q19
1Q19
1Q20
4Q19
1Q19
Revenue
$327.6
$343.3
$351.8
$12.6
$12.9
$10.5
Direct cost of revenue
$276.5
$292.1
$301.7
$3.0
$3.2
$3.0
Revenue less direct cost of revenue
$51.2
$51.1
$50.2
$9.6
$9.6
$7.4
SG&A expense
$40.8
$41.7
$40.9
$10.4
$9.6
$7.4
Depreciation and amortization
$3.2
$4.2
$4.0
$2.1
$1.5
$1.5
Severance expense
$0.6
$0.9
–
–
–
–
Other operating expense, net
$(2.2)
$(2.6)
$(1.1)
$(0.4)
$(0.3)
–
Income (loss) from operations
$4.4
$1.7
$4.2
$(3.3)
($1.8)
($1.5)
Adjusted EBITDA
$10.3
$9.4
$9.3
$(0.8)
–
–
TPS Segment Takeaways:
BOSS Revolution Calling revenue decreased 5.9% to $116.2 million and Carrier Services revenue decreased 20.2% to $113.5 million, in line with expectations;
Mobile Top-Up revenue increased 17.6% to $76.8 million boosted by expanded sales of bundled offerings;
NRS revenue increased by 93.4% to $2.4 million led by increased sales of advertising capacity to digital-out-of-home advertisers, transaction data to data analyt
ics and consumer package goods marketers, and credit card processing services to retailers operating NRS terminals. NRS increased the number of active terminals in its POS network at October 31, 2019 to 8,200 from 5,900 a year earlier;
BOSS Revolution Money Transfer revenue increased 55.8% to $7.4 million with solid growth from both DTC and retail channels.
net2phone Segment Takeaways:
net2phone-UCaaS revenue increased 50.3% to $7.2 million led by growth in South American markets. The year-over-year increases include the impact of the acquisition of Versature, a Canadian UCaaS provider, during 1Q19. Exclusive of the Versature acquisition, net2phone-UCaaS revenue increased 34.9%.
net2phone-UCaaS subscription revenue for its cloud communications offering – exclusive of equipment sales and SIP-trunking offerings – increased 87.0% to $5.9 million inclusive of the Versature acquisition;
net2phone’s cloud communications offering served 112,000 seats at October 31st, compared to 68,000 a year earlier, including seats served by Versature.
IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION This release is available for download in the “Investors & Media” section of the IDT Corporation website (http://ir.idt.net/) 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 December 12, 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: 10137108. A replay will also be accessible via streaming audio at the IDT investor relations website (http://ir.idt.net/).
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, 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.
IDT CORPORATION CONSOLIDATED BALANCE SHEETS
Assets
October 31, 2019
July 31, 2019
Current assets:
(Unaudited) (in thousands)
Cash and cash equivalents
$ 62,183
$ 80,168
Restricted cash and cash equivalents
190,218
177,031
Debt securities
9,894
2,534
Equity investments
5,710
5,688
Trade accounts receivable, net of allowance for doubtful accounts of $5,675 at October 31, 2019 and $5,444 at July 31, 2019
50,963
58,060
Prepaid expenses
27,809
20,276
Other current assets
26,964
24,704
Total current assets
373,741
368,461
Property, plant and equipment, net
32,874
34,355
Goodwill
11,214
11,209
Other intangibles, net
4,110
4,196
Equity investments
9,337
9,319
Operating lease right-of-use assets
11,597
–
Deferred income tax assets, net
4,110
4,589
Other assets
12,054
11,574
Total assets
$ 459,037
$ 443,703
Liabilities and equity
Current liabilities:
Trade accounts payable
$ 37,159
$ 37,077
Accrued expenses
121,058
127,834
Deferred revenue
40,739
42,479
Customer deposits
188,258
175,028
Other current liabilities
9,180
6,652
Total current liabilities
396,394
389,070
Operating lease liabilities
9,335
–
Other liabilities
977
1,076
Total liabilities
406,706
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 October 31, 2019 and July 31, 2019
33
33
Class B common stock, $.01 par value; authorized shares-200,000; 25,835 and 25,803 shares issued and 24,927 and 24,895 shares outstanding at October 31, 2019 and July 31, 2019, respectively
258
258
Additional paid-in capital
274,953
273,313
Treasury stock, at cost, consisting of 1,698 shares of Class A common stock and 908 shares of Class B common stock at October 31, 2019 and July 31, 2019
(51,739)
(51,739 )
Accumulated other comprehensive loss
(6,062)
(4,858)
Accumulated deficit
(162,276 )
(160,763 )
Total IDT Corporation stockholders’ equity
55,167
56,244
Noncontrolling interests
(2,836 )
(2,687)
Total equity
52,331
53,557
Total liabilities and equity
$ 459,037
$ 443,703
IDT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended October 31,
2019
2018
(in thousands, except per share data)
Revenues
$ 340,245
$ 362,316
Costs and expenses:
Direct cost of revenues (exclusive of depreciation and amortization)
279,461
304,693
Selling, general and administrative (i)
53,480
50,552
Depreciation and amortization
5,295
5,594
Severance
626
–
Total costs and expenses
338,862
360,839
Other operating expense, net
(2,775)
(1,295)
(Loss) income from operations
(1,392)
182
Interest income, net
272
108
Other income (expense), net
234
(1,349)
Loss before income taxes
(886)
(1,059)
Provision for income taxes
(536)
(939)
Net loss
(1,422)
(1,998)
Net income attributable to noncontrolling interests
(91)
(301)
Net loss attributable to IDT Corporation
$ (1,513)
$ (2,299)
Basic and diluted loss per share attributable to IDT Corporation common stockholders
$ (0.06)
$ (0.10)
Weighted-average number of shares used in calculation of basic and diluted loss per share
26,279
23,831
(i) Stock-based compensation included in selling, general and administrative expenses
$ 1,364
$ 413
IDT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended October 31,
2019
2018
(in thousands)
Operating activities
Net loss
$ (1,422)
$ (1,998)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization
5,295
5,594
Deferred income taxes
479
1,117
Provision for doubtful accounts receivable
549
447
Stock-based compensation
1,364
413
Other
(34)
46
Change in assets and liabilities:
Trade accounts receivable
7,975
97
Prepaid expenses, other current assets and other assets
(9,166)
(8,766)
Trade accounts payable, accrued expenses, other current liabilities and other liabilities
(10,012)
6,919
Customer depositsat IDT Financial Services Limited, our Gibraltar-based bank
1,793
5,567
Deferred revenue
(1,798)
(1,206)
Net cash (used in) provided by operating activities
(4,977)
8,230
Investing activities
Capital expenditures
(3,851)
(4,463)
Payment for acquisition, net of cash acquired
–
(5,453)
Purchases of debt securities and equity investments
(8,195)
–
Proceeds from maturities and sales of debt securities and sales of equity investments
782
3,372
Net cash used in investing activities
(11,264)
(6,544)
Financing activities
Distributions to noncontrolling interests
(240 )
(339)
Repayment of other liabilities
(19 )
(599)
Proceeds from exercise of stock options
276
–
Repurchases of Class B common stock
–
(3,854)
Net cash provided by (used in) financing activities
17
(4,792)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents
11,426
(4,590)
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents
(4,798)
(7,696)
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
$ 252,401
$ 195,501
Reconciliation of Non-GAAP Financial Measures for the First Quarter Fiscal 2020 and 2019
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 1Q20, 4Q19, and 1Q19, 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 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 (loss) 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 (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 2020 and fiscal 2019 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.
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 (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. Other operating expense, net includes accruals for non-income related taxes related to one of IDT’s foreign entities, legal fees related to Straight Path Communications Inc.’s stockholders’ putative class action and derivative complaint, and expense for the indemnification of a net2phone cable telephony customer related to patent infringement claims brought against the customer. From time-to-time, IDT may incur costs related to non-routine tax and legal matters. However, these matters do not 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 (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.
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 (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 (loss) and non-GAAP earnings (loss) per share may not be comparable t
o 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 (loss) per share.
IDT Corporation
Reconciliation of Adjusted EBITDA to Net (Loss) 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 October 31, 2019
(1Q20)
Adjusted EBITDA
$ 7.3
$ 10.3
$ (0.8)
$ (2.2)
Subtract:
Depreciation and amortization
5.3
3.2
2.1
–
Severance expense
0.6
0.6
–
–
Other operating expense, net
2.8
2.2
0.4
0.3
(Loss) income from operations
(1.4)
$ 4.4
$ (3.3)
$ (2.5)
Interest income, net
0.3
Other income, net
0.2
Loss before income taxes
(0.9)
Provision for income taxes
(0.5)
Net loss
(1.4)
Net income attributable to noncontrolling interests
(0.1)
Net loss attributable to IDT Corporation
$ (1.5)
Total IDT Corporation
Telecom & Payment Services
net2phone
Corporate
Three Months Ended July 31, 2019
(4Q19)
Adjusted EBITDA
$ 7.4
$ 9.4
$ -
$ (2.1)
Subtract (Add):
Depreciation and amortization
5.8
4.2
1.5
–
Severance expense
0.9
0.9
–
–
Other operating expense (gains), net
1.9
2.6
0.3
(1.0)
(Loss) income from operations
(1.2)
$ 1.7
$ (1.8)
$ (1.1)
Interest income, net
0.3
Other income, net
1.2
Income before income taxes
0.3
Benefit from income taxes
0.6
Net income
0.9
Net income attributable to noncontrolling interests
0.7
Net income attributable to IDT Corporation
$ 1.6
IDT Corporation Reconciliation of Adjusted EBITDA to Net Loss (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 October 31, 2018
(1Q19)
Adjusted EBITDA
$ 7.1
$ 9.3
$ -
$ (2.3)
Subtract:
Depreciation and amortization
5.6
4.0
1.5
–
Other operating expense
1.3
1.1
–
0.2
Income (loss) from operations
0.2
$ 4.2
$ (1.5)
$ (2.5)
Interest income, net
0.1
Other expense, net
(1.3)
Loss before income taxes
(1.1)
Provision for income taxes
(0.9)
Net loss
(2.0)
Net income attributable to noncontrolling interests
(0.3)
Net loss attributable to IDT Corporation
$ (2.3)
IDT Corporation Reconciliations of Net (Loss) Income to Non-GAAP Net Income (Loss) and Earnings (Loss) per share to Non- GAAP Earnings (Loss) per share (unaudited) in millions, except per share data Figures may not foot due to rounding to millions.
1Q20
4Q19
1Q19
Net (loss) income
$ (1.4)
$ 0.9
$ (2.0)
Adjustments (add) subtract:
Stock-based compensation
(1.3)
(1.0)
(0.4)
Severance exp
ense
(0.6)
(0.9)
–
Other operating expense, net
(2.8)
(1.9)
(1.3)
Total adjustments
(4.7)
(3.8)
(1.7)
Income tax effect of total adjustments
0.5
0.6
0.2
4.2
3.2
1.5
Non-GAAP net income (loss)
$ 2.8
$ 4.1
$ (0.5)
Earnings (loss) per share:
Basic
$ (0.06)
$ 0.06
$ (0.10)
Total adjustments
0.17
0.09
0.08
Non-GAAP – basic
$ 0.11
$ 0.15
$ (0.02)
Weighted-average number of shares used in calculation of basic earnings (loss) per share
26.3
26.3
23.8
Diluted
$ (0.06)
$ 0.06
$ (0.10)
Total adjustments
0.16
0.09
0.08
Non-GAAP – diluted
$ 0.10
$ 0.15
$ (0.02)
Weighted-average number of shares used in calculation of diluted earnings (loss) per share
IDT Corporation to Report First Quarter Fiscal Year 2020 Results
NEWARK, N.J., Nov. 20, 2019 — IDT Corporation (NYSE: IDT), a global provider of communications and payment services, is scheduled to report financial and operational results for the first quarter of its fiscal year 2020 (the three-months ended October 31, 2019) on Thursday, December 5, 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 three hours after the call concludes through December 12, 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: 10137108. 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.
NRS Promotes Retail Executive Vanessa Strain to Vice President of Data Sales
NEWARK, N.J., Nov. 11, 2019 – National Retail Solutions (NRS), operator of a leading point-of-sale network for independent retailers, today announced the promotion of Vanessa Strain to Vice President of Data Sales.
“Our nationwide network of terminals operated by independent retailers around the country generates rich data flows for insight in the dynamic independent retailer market. Vanessa has proven an invaluable leader to NRS as we continue to drive data-set based value to consumer package goods clients and safeguard the personal data of customers,” said Eli Korn, COO of NRS.
Ms. Strain, who formerly served as NRS’ Director of Data Sales, has over 30 years of experience in the Consumer Goods Industry on both the manufacturer and supplier sides. Prior to joining NRS, she served at Nielsen as Vice President of Multicultural and E-Commerce Growth and Strategy. During her career, Ms. Strain led client relationships with several Fortune 500 companies.
“Vanessa’s superior analytical and leadership skills, her deep understanding of category management and her ability to develop and execute on strategic priorities have proven invaluable to NRS. This new position is a great fit for her and for our company,” added Elie Y. Katz, NRS’ CEO.
About National Retail Solutions (NRS):
NRS operates a point-of-sale (POS) terminal-based platform for independent retailers and bodega owners nationwide. The platform provides a robust portfolio of tools to help these retailers compete more effectively, including inventory tracking, store statistics, user management, integration with Boss Revolution® communication and payment services, and integration with the BR Club loyalty program. Consumer packaged goods (CPG) suppliers are able to leverage the NRS platform to provision promotions, coupons and special offers to independent retailers and their predominantly urban customer bases nationwide. NRS is a subsidiary of IDT Corporation (NYSE: IDT).
