NEWARK, NJ–(Marketwired – March 09, 2015) – IDT Corporation (NYSE: IDT) reported diluted earnings per share (EPS) of $0.11 and an increase in Non-GAAP diluted EPS* to $0.33 on revenue of $394.2 million for the second quarter of its fiscal year 2015, the three months ended January 31, 2015. 

SECOND QUARTER FISCAL 2015 CONSOLIDATED HIGHLIGHTS* 

• Revenue decreased to $394.2 million from $406.4 million; 
• Direct costs decreased to $328.7 million from $335.3 million;
• SG&A expense was essentially flat at $57.4 million compared to $57.3 million;
• Adjusted EBITDA* decreased to $8.0 million from $11.3 million;
• Income from operations decreased to $3.7 million from $7.6 million;
• Net income attributable to IDT remained unchanged at $2.5 million;
• Diluted EPS remained unchanged at $0.11;
• Non-GAAP net income* increased to $7.5 million from $6.4 million;
• Non-GAAP diluted EPS* increased to $0.33 from $0.28;
• Net cash provided by operating activities was $12.7 million, compared to net cash used by operating activities of $1.9 million.

Shmuel Jonas, IDT’s Chief Executive Officer, said, “Our core telecommunications segment performed to expectations, generating $11.1 million in Adjusted EBITDA, led by our flagship Boss Revolution calling service, which achieved solid 14% revenue growth year over year. Meanwhile, we are making good progress on our international money transfer business and other important long term growth initiatives, such as the addition of new features and services to our Boss Revolution app including instant messaging, which is scheduled for release later this calendar year.”

*Throughout this release, unless otherwise noted, results are for 2Q15 and are compared to 2Q14. Non-GAAP diluted EPS, Non-GAAP net income and Adjusted EBITDA for all periods presented are non-GAAP measures intended to provide useful information that supplements IDT’s or the relevant segment’s core 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 reconciliation to the most directly comparable GAAP measure.

2Q15 OPERATING RESULTS BY SEGMENT*

TPS
IDT’s Telecom Platform Services (TPS) segment accounted for 98.7% of IDT’s revenue in 2Q15. TPS markets and distributes multiple communications and payment services across four broad business verticals: Retail Communications, Wholesale Termination Services, Payment Services and Hosted Platform Solutions.

TPS’ minutes of use increased to 7.53 billion from 7.36 billion (+2.3%). TPS’ 2Q15 revenue was $389.0 million, a decrease from $398.1 million (-2.3%) in the year ago quarter. 

• Retail Communications’ revenue increased to $181.3 million from $169.8 million (+6.8%). Sales of international calling services on the Boss Revolution platform increased 14.3% year over year primarily due to growth in the number of active Boss Revolution customers, partially offset by a decline in revenue per customer. Boss Revolution calling services growth more than offset continued declines in revenue from the sale of traditional disposable prepaid calling cards in the U.S. and Europe. Retail Communications’ revenue comprised 46.6% of TPS’ total revenue in 2Q15.
• Wholesale Termination Services’ minutes of use grew by 3.5% compared to the year ago quarter. Revenue was $147.8 million, a decrease from $167.8 million (-11.9%) in 2Q14. Compared to the year ago quarter, arbitrage pricing opportunities in Latin America resulting from disparities in local currency exchange rates continued to decline. In addition, sales denominated in foreign currencies, particularly the Euro, were negatively impacted by the stronger U.S. dollar. Finally, the overall traffic mix tilted towards lower revenue but higher margin per minute destinations. Wholesale Termination Services’ revenue comprised 38.0% of TPS’ total revenue in 2Q15.
• Payment Services’ revenue was $50.0 million, an increase from $48.9 million (+2.2%) in 2Q14. The year over year increase is due primarily to more aggressive pricing on international airtime top-up sales. Revenue from IDT’s international money transfer business was not yet material, although it contributed to the revenue increase. Payment Services revenue comprised 12.8% of total TPS revenue in 2Q15. 
• Hosted Platform Solutions’ revenue was $9.9 million, a decrease from $11.6 million (-14.8%) in 2Q14. Within IDT’s cable telephony business, IDT renewed multi-year contracts with key cable telephony customers in the second half of fiscal 2014, but at lower rates, reflecting the long-term decline in the underlying costs of hosted telephony services. Hosted Platform Solutions’ revenue comprised 2.6% of total TPS revenue in 2Q15. 

TPS’ direct cost of revenue as a percentage of TPS’ revenue was 84.2% in 2Q15, an increase of 50 basis points year over year. This increase was caused primarily by the loss of revenue from the relatively high margin South American arbitrage opportunity, by the decline in margin contribution from the cable telephony business, and by margin pressure on airtime top-up offerings.

TPS’ SG&A expense increased to $50.5 million from $49.5 million (+1.9%) in 2Q14 due primarily to higher marketing and advertising expense and to higher levels of investment in the Company’s international money transfer service business.

TPS’ Adjusted EBITDA decreased to $11.1 million from $15.5 million (-28.1%) in 2Q14, primarily reflecting the decrease in Wholesale Termination Services and Hosted Platform Solutions’ revenue and the increase in SG&A expense.

TPS’ depreciation and amortization expense increased to $3.9 million compared to $3.4 million (+15.0%) in 2Q14, due to increased capital investment in recent quarters in new products, including IDT Messaging, Net2Phone Office, and feature-rich enhancements to the Boss Revolution app.

TPS’ income from operations in 2Q15 decreased to $6.9 million from $12.4 million (-44.6%) in 2Q14.

CPS
Consumer Phone Services (CPS) sells local and long distance services in the United States. CPS has been in harvest mode since fiscal 2006 — maximizing revenue from current customers while maintaining SG&A and other expenses at the minimum levels essential to operate the business. 

CPS’ revenue in 2Q15 was $2.2 million compared to $2.9 million (-21.3%) in 2Q14. Income from operations was $307 thousand compared to $421 thousand. The results were in line with expectations.

All Other
All Other’s results for 2Q15 include Zedge — a popular platform for mobile phone consumers to obtain free customization content, IDT’s real estate holdings and other small businesses. Zedge’s results were previously reported separately. All Other’s results previously included Fabrix, a software development company specializing in highly efficient cloud-based video processing, storage and delivery. In early October 2014, IDT sold its majority stake in Fabrix. Consequently, Fabrix’s operations were consolidated in all prior periods up to the first two months of 1Q15, at which point Fabrix was deconsolidated. 

Zedge’s app, available on Android, iOS and Windows Mobile, boasts more than 130 million installs. Zedge has averaged among the top twenty most popular apps in the Google Play store in the U.S. for the last five years and is currently in the top five most popular free apps in the iTunes Entertainment category. As a result of Zedge’s large, active user base, it is able to offer advertisers, game developers, musicians and artists a scalable, non-incentivized, user acquisition platform with global reach. Zedge’s revenue was $2.4 million, a 39.0% increase from $1.7 million in 2Q14. 

All Other’s revenue, including Zedge, was $3.0 million, a decrease from $5.5 million (-45.9%) in 2Q14. In the year ago quarter, Fabrix contributed $3.3 million to All Other’s aggregate revenue. All Other’s loss from operations was $602 thousand compared to a loss from operations of $1.3 million in 2Q14, which included a loss from operations of $1.1 million generated by Fabrix.

OTHER CONSOLIDATED RESULTS*
Consolidated results for all periods presented include corporate overhead. In 2Q15, Corporate general & administrative expense decreased to $2.8 million compared to $3.9 million (-27.2%) in the year ago quarter.

Following the close of 2Q15, IDT completed a reduction of approximately 7% in its global compensation costs. This cost-cutting initiative is expected to reduce IDT’s current annual SG&A run rate by approximately $10 million. As a result of this reduction in headcount, the Company expects to incur severance expense of approximately $6.6 million in 3Q15.

Adjusted EBITDA on a consolidated basis in 2Q15 was $8.0 million compared to $11.3 million in 2Q14, reflecting primarily the decline in Adjusted EBITDA generated by TPS, partially offset by the reduction in corporate G&A expense. Income from operations was $3.7 million compared to $7.6 million in 2Q14.

Net income in 2Q15 was $2.5 million and diluted EPS was $0.11, unchanged from the year ago quarter. 

As of January 31, 2015, IDT had $152.2 million in unrestricted cash, cash equivalents and marketable securities. In addition, IDT had $69.2 million in current restricted cash and cash equivalents, which included $65.7 million in customer deposits held by IDT’s Gibraltar-based bank. Notes payable, consisting of a mortgage on real estate, totaled $6.5 million. Total current assets were $334.1 million and total current liabilities were $331.4 million.

Net cash provided by operating activities during 2Q15 was $12.7 million, compared to net cash used by operating activities of $1.9 million during 2Q14. For the same periods, capital expenditures were $7.8 million and $4.2 million, respectively.

DIVIDENDS
Following the sale of its Fabrix Systems business, IDT paid special dividends to holders of its Class A and Class B common stock, of $0.68 per share and $0.64 per share in November 2014 and January 2015, respectively. Separately, in December 2014, the Company raised its quarterly dividend to $0.18 per share. In aggregate, IDT distributed $34.9 million to its shareholders during 2Q15.

The Board of Directors of IDT has declared a dividend of $0.18 per share for the second quarter of its fiscal year 2015. The dividend will be paid on or about March 27, 2015 to Class A and Class B common stockholders of record as of the close of business on March 20, 2015. The ex-dividend date will be March 18, 2015. This distribution will be treated as an ordinary dividend for tax purposes.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION

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 1-877-300-8521 (from U.S.) or 1-412-317-6026 (international) and request the IDT Corporation call.

An audio replay of the conference call will be available one hour after the call concludes through March 16, 2015 by dialing 1-877-870-5176 (toll free from the U.S.) or 1-858-384-5517 (international) and providing the conference code: 10059848. The replay will also be available by streaming from the IDT website investor relations site: www.idt.net/ir shortly after the call concludes.

ABOUT IDT CORPORATION:

IDT Corporation (NYSE: IDT), through its IDT Telecom division, provides retail telecommunications and payment services to help immigrants and the under-banked conveniently and inexpensively communicate and share resources around the world. IDT Telecom’s wholesale business is a leading global carrier of international long distance calls. IDT also holds a majority interest in Zedge (www.zedge.net), developer of the popular, eponymous app for mobile content discovery and acquisition. 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 2015

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 the second quarters of fiscal 2015 and 2014, Adjusted EBITDA, non-GAAP net income and non-GAAP diluted earnings per share, or EPS, 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, selling, general and administrative expense and research and development expense. Another way of calculating Adjusted EBITDA is to start with income from operations, add depreciation and amortization, and severance expense, and subtract the gain on the sale of interest in Fabrix Systems Ltd. and other operating gains.

IDT’s measure of non-GAAP net income starts with net income in accordance with GAAP and adds depreciation and amortization, severance expense, and stock-based compensation, and subtracts the gain on the sale of interest in Fabrix Systems Ltd. and other operating gains.

IDT’s measure of non-GAAP diluted EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares.

These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2015 and fiscal 2014 periods.

Management believes that IDT’s Adjusted EBITDA, non-GAAP net income and non-GAAP EPS measures provide useful information to both management and investors by excluding certain expenses and non-routine gains or 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 EPS 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, 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 operating results exclusive of depreciation and amortization charges are useful indicators of its current performance.

Severance expense is also excluded from the calculation of Adjusted EBITDA, non-GAAP net income and non-GAAP EPS. 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.

Gain on the sale of interest in Fabrix Systems Ltd. and other operating gains, net, which are components of income (loss) from operations, are excluded from the calculation of Adjusted EBITDA, non-GAAP net income and non-GAAP EPS. From time-to-time, IDT will select and incubate promising early stage businesses outside of its core business for eventual sale or spin-off to its stockholders. Also, IDT has insurance claims and settlements of claims from time-to-time, and has a number of matters under litigation. However, these gains and losses do not occur each quarter nor are they part 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, selling, general and administrative expense and research and development 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 various valuation methodologies, subjective assumptions and the variety of types of awards that are permitted under GAAP. Stock-based compensation is excluded from IDT’s calculation of non-GAAP net income and non-GAAP EPS 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 EPS 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, 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 and non-GAAP EPS 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 EPS 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 for IDT on a consolidated basis, (b) for non-GAAP net income, net income and, (c) for non-GAAP EPS, basic and diluted earnings per share.

NEWARK, NJ–(Marketwired – March 02, 2015) – IDT Corporation (NYSE: IDT) will report its financial and operational results for the second quarter of its fiscal year 2015 on Monday, March 9, 2015 after market close. 

The second quarter (the three months ended January 31, 2015) earnings release will be filed on a Form 8-K and posted on the investor relations page of the IDT website (www.idt.net/about/ir) at approximately 4:30 PM ET. As in prior quarters, the earnings release will not be issued over a wire service.

IDT will host an earnings conference call beginning at 5:30 PM ET 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 1-877-300-8521 (from U.S.) or 1-412-317-6026 (international) and request the IDT Corporation call.

An audio replay of the conference call will be available one hour after the call concludes through March 16, 2015 by dialing 1-877-870-5176 (toll free from the U.S.) or 1-858-384-5517 (international) and providing the conference code: 10059848. The replay will also be available by streaming from the IDT website investor relations site: www.idt.net/ir shortly after the call concludes.

About IDT Corporation:


IDT Corporation (NYSE: IDT), through its IDT Telecom division, provides retail telecommunications and payment services to help immigrants and the under-banked conveniently and inexpensively communicate and share resources around the world. IDT Telecom’s wholesale business is a leading global carrier of international long distance calls. IDT also holds a majority interest in Zedge (www.zedge.net), developer of the popular eponymous app for a mobile content discovery and acquisition. For more information on IDT, visit www.idt.net.

IDT Corporation (NYSE:IDT), a leading provider of international
telephony and payment services and the largest U.S. based carrier of
international long distance calls, said today that it has reached an
agreement with Empresa de Telecomunicaciones de Cuba S.A. (ETECSA),
Cuba’s national telecom provider, to exchange international long
distance voice traffic between the United States and Cuba directly.

The agreement was filed today with the Federal Communications Commission
(FCC) and is subject to FCC review for a period of ten days.

If the FCC allows the agreement to take effect as expected, IDT will be
the only U.S. carrier to have a direct interconnection into Cuba.

“We are very pleased to have reached this groundbreaking agreement with
ETECSA. This is an important first step in the liberalization of
telecommunications between the U.S. and Cuba,” said Bill Pereira, Chief
Executive Officer of IDT Telecom. “Ultimately, the agreement will help
make it easier and more affordable for our customers to call friends and
family in Cuba.”

The announcement follows on the heels of revisions to the Cuban Assets
Control Regulations announced by the U.S. government earlier this month.

About IDT Corporation:

IDT
Corporation (NYSE: IDT), through its IDT Telecom division, provides
retail telecommunications and payment services to help immigrants and
the under-banked conveniently and inexpensively communicate and share
resources around the world. IDT’s wholesale business is a leading global
carrier of international long distance calls. IDT also holds a majority
interest in Zedge (www.zedge.net),
developer of the popular, eponymous app for a mobile content discovery
and acquisition. For more information on IDT, visit www.idt.net.

Caution Concerning Forward Looking Statements:

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.

Investor Relations
IDT Corporation
Bill Ulrey, 973-438-3838
invest@idt.net

The Board of Directors of IDT Corporation (NYSE:IDT) today declared a
special dividend of $0.64 per share of Class A and Class B common stock.

“IDT has declared a special dividend of $0.64 today in recognition of
our liquid balance sheet following the sale of our stake in Fabrix
Systems in October and anticipated capital requirements,” said IDT’s
Chief Executive Officer, Shmuel Jonas. “Today’s announcement follows a
$0.68 special dividend paid by the company in November. We are fortunate
to be well positioned to return proceeds from the Fabrix sale to our
stockholders even as we continue to invest in long term growth
initiatives in our core telecommunications and payments business.”

As of October 31, 2014, IDT reported $183.3 million in unrestricted
cash, cash equivalents and marketable securities and no long term debt.

The special dividend declared today will be paid on or about January 23,
2015 to stockholders of record as of the close of business on January
15, 2015. The ex-dividend date will be January 13, 2015.

The distribution will be treated as a return of capital for tax purposes.

About IDT Corporation:

IDT Corporation (NYSE:IDT), through its IDT Telecom division, provides
retail telecommunications and payment services to help immigrants and
the under-banked communicate and share resources around the world. IDT
Telecom’s wholesale business is a leading global carrier of
international long distance calls. IDT also holds a majority interest in
Zedge (www.zedge.net),
developer of the popular eponymous app for a mobile content discovery
and acquisition. For more information on IDT, visit www.idt.net.

Investor Relations
IDT Corporation
Bill Ulrey, 973-438-3838
invest@idt.net

The Board of Directors of IDT Corporation (NYSE: IDT) today declared a
quarterly dividend of $0.18 per share of Class A and Class B common
stock for the first quarter of its fiscal year 2015.

IDT raised its dividend from $0.17 per share paid during fiscal 2014.
The Company also paid a special dividend of $0.68 per share in November
after closing on the sale of its stake in Fabrix Systems.

The dividend declared today will be paid on or about December 19, 2014
to stockholders of record as of the close of business on December 15,
2014. The ex-dividend date will be December 11, 2014. The distribution
will be treated as a return of capital for tax purposes.

About IDT Corporation:

IDT Corporation (NYSE: IDT), through its IDT Telecom division, provides
retail telecommunications and payment services to help immigrants and
the under-banked conveniently and inexpensively communicate and share
resources around the world. IDT Telecom’s wholesale business is a
leading global carrier of international long distance calls. IDT also
holds a majority interest in Zedge (www.zedge.net),
developer of the popular eponymous app for a mobile content discovery
and acquisition. For more information on IDT, visit www.idt.net.

Investor Relations
IDT Corporation
Bill Ulrey, 973-438-3838
invest@idt.net

IDT Corporation (NYSE:IDT) will report its financial and operational
results for the first quarter of its fiscal year 2015 on Monday,
December 8, 2014 after market close.

The first quarter (the three months ended October 31, 2014) earnings
release will be filed on a Form 8-K and posted on the investor relations
page of the IDT website (www.idt.net/about/ir) at
approximately 4:30 PM ET. As in prior quarters, the earnings release
will not be issued over a wire service.

IDT will host an earnings conference call beginning at 5:30 PM ET 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
1-877-300-8521 (from U.S.) or 1-412-317-6026 (international) and request
the IDT Corporation call.

An audio replay of the conference call will be available one hour after
the call concludes through December 22, 2014 by dialing 1-877-870-5176
(toll free from the U.S.) or 1-858-384-5517 (international) and
providing the conference code: 10055971. The replay will also be
available by streaming from the IDT website investor relations site: www.idt.net/ir
shortly after the call concludes.

About IDT Corporation:

IDT
Corporation (NYSE: IDT), through its IDT Telecom division, provides
retail telecommunications and payment services to help immigrants and
the under-banked conveniently and inexpensively communicate and share
resources around the world. IDT Telecom’s wholesale business is a
leading global carrier of international long distance calls. IDT also
holds a majority interest in Zedge (www.zedge.net),
developer of the popular eponymous app for a mobile content discovery
and acquisition. For more information on IDT, visit www.idt.net.

Investor Relations
IDT Corporation
Bill Ulrey, 973-438-3838
invest@idt.net

The Board of Directors of IDT Corporation (NYSE:IDT) today declared a
special dividend of $0.68 per share of Class A and Class B common stock.
The dividend will be paid on or about November 21, 2014 to stockholders
of record as of the close of business on November 14, 2014. The
ex-dividend date will be November 12, 2014. The distribution will be
treated as a return of capital for income tax purposes.

“After the sale of our majority stake in Fabrix Systems earlier this
month, IDT has declared a special dividend of sixty eight cents per
share,” said Shmuel Jonas, CEO of IDT. “As previously disclosed we are
evaluating several alternatives for deploying the balance of the
proceeds from the sale, and will have more to say as developments
warrant.”

ABOUT IDT CORPORATION

IDT
Corporation (NYSE:IDT), through its IDT Telecom division, provides
retail telecommunications and payment services to help immigrants and
the under-banked conveniently and inexpensively communicate and share
resources around the world. IDT Telecom’s wholesale business is a
leading global carrier of international long distance calls. IDT also
holds a majority interest in Zedge (www.zedge.net),
developer of the popular eponymous app for a mobile content discovery
and acquisition. For more information on IDT, visit www.idt.net.

Investor Relations
IDT Corporation
Bill Ulrey, 973-438-3838
invest@idt.net

IDT Corporation (NYSE:IDT), a global provider of telecommunications and
payment services, announced today that it has completed the sale of
Fabrix Systems (Fabrix) to Ericsson. The final sale price for 100% of
the shares in Fabrix was $95 million in cash, excluding transaction
costs and working-capital and other adjustments. IDT owned approximately
78% of Fabrix on a fully diluted basis.

IDT’s share of the sale price, net of transaction costs, is expected to
be approximately $73 million in cash. IDT and other shareholders have
placed $13.0 million of their proceeds in escrow to resolve any
post-closing claims that may arise. Any unclaimed escrow balance will be
released in two tranches over a period of 18 months.

IDT was advised on the deal by Stifel.

The description of the transaction contained herein is only a summary
and is qualified in its entirety by reference to the definitive
agreement relating to the transaction, a copy of which has been filed
with the SEC as an exhibit to a Current Report on Form 8-K.

Forward Looking Statements:

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.

About IDT Corporation:

IDT
Corporation (NYSE:IDT), through its IDT Telecom division, provides
retail telecommunications and payment services to help immigrants and
the under-banked to conveniently and inexpensively communicate and share
resources around the world. IDT Telecom’s wholesale business is a
leading global carrier of international long distance voice calls. IDT
also holds a majority interest in Zedge (www.zedge.net),
a mobile content discovery and acquisition platform, with one of the
most popular Apps for Android and iOS. For more information, visit www.idt.net.

Investor Relations
IDT Corporation
Bill Ulrey, 973-438-3838
invest@idt.net

NEWARK, N.J., Sept. 24, 2014 — IDT Corporation (NYSE:IDT), a leading provider of voice and payment services to immigrant communities around the world, today announced that its Boss Revolution mobile app has surpassed the one million download milestone since launch eleven months ago.

To celebrate this exciting milestone, Boss Revolution is conducting a sweepstakes in which winners will receive a new smartphone — either a new Samsung Galaxy or iPhone 6. Every Boss Revolution app customer is automatically entered. More details about the promotion are available at www.bossrevolution.com.

The Boss Revolution mobile app has received extremely positive feedback, with users praising its affordability and convenience. In addition, the app was recognized as the Best Telecommunication Mobile App of 2013 by MoviForum.

“We are thrilled with the customer response to our mobile app. While geographic distance might separate our customers from their family and friends, Boss Revolution provides products and services that keep them connected,” said Ben Hirsch, IDT Telecom’s Chief Marketing Officer.

“Our international calling app makes it easy and inexpensive to reach out to loved ones from anywhere, for any reason. Our mobile top up service, recently introduced into our app, is a convenient way to recharge the prepaid mobile phones of family and friends in over 200 destinations. We will continue to add features and services that help bridge the distance between our customers and the special people in their lives,” Mr. Hirsch concluded.

With the app, customers simply tap an entry in their contact list to initiate a call. Anyone can get up to $2 in free international calls just for downloading the app to experience the ease of use and outstanding voice quality of Boss Revolution. The Boss Revolution mobile app is available free on iTunes and Google Play in both English and Spanish.

Customers can recharge their Boss Revolution account right in the app or on the Boss Revolution website, www.bossrevolution.com using a credit card or a prepaid Boss Revolution recharge card, or using cash at any of the thousands of participating Boss Revolution retailers around the United States.

The Boss Revolution app is available in the United States, Canada, UK, Australia, Spain, the Dominican Republic and Jamaica and will soon be available in many more countries around the world. Once installed, the app can be used anywhere in the country where it was purchased, and worldwide from any Wi-Fi or data connection.

Apple, the Apple logo and iTunes are trademarks of Apple Inc., registered in the US and other countries. iPhone is a trademark of Apple, Inc. App Store is a service mark of Apple Inc. Android and GOOGLE PLAY are trademarks of Google Inc.

About IDT Corporation:

IDT Corporation (NYSE:IDT) through its IDT Telecom division, provides telecommunications and payment services. IDT Telecom’s retail products allow people to communicate and share resources around the world while its carrier services business is a global leader in wholesale voice termination. For more information, visit www.idttelecom.com or www.idt.net.

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CONTACT: Bill Ulrey
         Investor Relations
         IDT Corporation
         (973) 438-3034
         william.ulrey@idt.net