IDT Reports Fourth Quarter and Full Year Fiscal 2013 Results 14th Consecutive Quarter of Year-Over-Year Revenue Growth Expects to Resume Quarterly Dividend at $0.15 in Q1 Fiscal 2014

* 14th Consecutive Quarter of Year-Over-Year Revenue Growth

* Expects to Resume Quarterly Dividend at $0.15 in Q1 Fiscal 2014

§ NEWARK, NJ — October 3, 2013: IDT Corporation (NYSE: IDT) reported a diluted loss per share of $0.17 and Non-GAAP diluted EPS of $0.13 for its fourth quarter of fiscal 2013, the three months ended July 31, 2013. For FY 2013, diluted EPS was $0.52 and Non-GAAP diluted EPS was $1.09.

Howard Jonas, IDT’s Chairman and CEO, said, “IDT delivered another strong quarter to round out a successful year. We continued our string of quarterly revenue growth compared to the year ago period while significantly improving Adjusted EBITDA. Given the consistently favorable results in recent quarters and the underlying strength of our businesses, the Board intends to resume paying a quarterly dividend with a $0.15 per share payment in December for the first quarter of fiscal 2014 provided that the quarter’s results are in line with expectations.” In November 2012, IDT paid its 2013 fiscal year dividends in advance with a special dividend of $0.60 per share.

“Zedge and Fabrix Systems, our primary non-telecom businesses, are extremely well positioned in today’s marketplace — actively participating in consumer trends around mobile content acquisition and cloud-based storage, respectively,” Mr. Jonas continued. “We expect that these businesses will follow the successful paths of other businesses incubated within IDT, such as Net2Phone, IDT Entertainment, Genie Energy and Straight Path Communications, to create significant IDT shareholder value through sales, spin-offs or IPOs. With that in mind, we have already begun to explore strategic options for Zedge.”

4Q13 AND FULL FISCAL YEAR 2013 HIGHLIGHTS

(Results for 4Q13 are compared to 4Q12, and results for FY 2013 are compared to FY 2012 unless otherwise noted).

· Revenue in 4Q13 increased 7.1% to $412.1 million from $384.7 million; FY 2013 revenue increased 7.6% to $1,620.6 million from $1,506.3 million.

· Direct cost of revenue expressed as a percentage of revenue in 4Q13 improved to 83.6% from 84.2%; FY 2013 direct cost of revenue as a percentage of revenue improved to 83.7% from 84.3%.

· Adjusted EBITDA in 4Q13 increased 45.7% to $9.7 million from $6.6 million; FY 2013 Adjusted EBITDA increased 55.0% to $39.4 million from $25.4 million.

· Income from operations in 4Q13 – including the impact of a non-routine impairment of $4.4 million – was $1.4 million compared to $2.8 million; FY 2013 income from operations increased to $29.4 million, compared to a loss from operations of $7.1 million.

· Net loss attributable to IDT in 4Q13, which included the non-routine impairment mentioned above, was $3.7 million compared to net income attributable to IDT of $37.3 million in 4Q12. (Net income in 4Q12 included a non-routine income tax benefit of $36.6 million.); FY 2013 net income attributable to IDT was $11.6 million compared to $38.6 million in FY 2012. (Net income in FY 2012 included an income tax benefit of $42.8 million.)

· Diluted loss per share in 4Q13 was $0.17 compared to diluted EPS of $1.69. (The 4Q12 amount included a non-routine income tax benefit per diluted share of $1.65.); FY 2013 diluted EPS was $0.52, compared to $1.75. (FY 2012 diluted EPS included an income tax benefit per diluted share of $1.94.)

· Non-GAAP net income in 4Q13 was $2.9 million, compared to $5.3 million; FY 2013 Non-GAAP net income was $24.4 million, compared to $29.8 million.

· Non-GAAP diluted EPS in 4Q13 decreased to $0.13 compared to $0.24; FY 2013 Non-GAAP diluted EPS was $1.09 compared to $1.35.

· Net cash provided by operating activities in 4Q13 was $14.2 million compared to $5.0 million; FY 2013 net cash provided by operating activities was $59.3 million compared to $36.5 million.

§ NOTES:

Adjusted EBITDA, Non-GAAP net income and Non-GAAP diluted EPS for all periods presented are non-GAAP measures intended to provide useful information that supplements IDT’s or the relevant segment’s core operating 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.

IDT’s operating results for fiscal 2013 and all prior periods presented have been adjusted to reflect the spin-off of Genie Energy in October 2011 and the spin-off of Straight Path Communications Inc. in July 2013. Genie Energy and Straight Path Communications Inc. are accounted as discontinued operations for all periods presented.

4Q13 AND FULL FISCAL YEAR 2013 OPERATING RESULTS BY SEGMENT

TPS

IDT’s Telecom Platform Services (TPS) segment accounted for 98% of IDT’s revenue in FY 2013 and FY 2012. The businesses within TPS market and distribute 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 in 4Q13 d
ecreased to 7.3 billion from 8.2 billion in 4Q12 (-11.0%) and 7.8 billion in 3Q13 (-7.1%). The decreases primarily reflect the impact of market price increases in industry-wide termination rates into several South Asian nations. The price increases were largely imposed during 3Q13 and resulted in significant reductions in minutes of use and revenues on high volume, low margin routes to these destinations. Sequentially, minutes of use decreased despite the fact that 4Q13 had three more days than 3Q13. For FY 2013, minutes of use increased 6.1% to 32.6 billion from 30.8 billion in FY 2012, as the growth in other portions of the business more than offset the decline to those South Asian nations in the second half of the fiscal year. The South Asia market price increases had little effect on bottom line economics, as gross profit dollars per minute to these destinations have remained relatively stable.

TPS’ revenue in 4Q13 increased to $403.9 million compared to $378.3 million (+6.8%) in the year ago quarter and $388.9 million (+3.9%) in the prior quarter reflecting, in part, the three additional days in 4Q13 compared to 3Q13. For FY 2013, revenue increased by 7.5% to $1,587.6 million from $1,477.1 million in FY 2012.

· Retail Communications’ revenue in 4Q13 increased to $176.3 million compared to $147.0 million (+19.9%) in 4Q12 and $165.4 million (+6.6%) in 3Q13. Increases in sales of PIN-less calling services on the Boss Revolution platform continued to more than offset declines in sales of traditional disposable calling cards. In FY 2013, Retail Communications’ revenue increased 19.0% to $656.5 million from $551.7 million in FY 2012. Retail Communications comprised 43.7% of TPS’ total revenue in 4Q13.

· Wholesale Termination Services’ revenue in 4Q13 decreased to $164.5 million from $175.2 million (-6.1%) in 4Q12, but increased from $159.3 million (+3.3%) in 3Q13. The year over year decrease reflects the aforementioned reduction in traffic to certain South Asian destinations. The sequential increase reflects, in part, the additional three calendar days in IDT’s 4Q13 compared to 3Q13. In FY 2013, Wholesale Termination Services’ revenue decreased 3.9% to $687.6 million from $715.4 million in FY 2012. Wholesale Termination Services’ revenue comprised 40.7% of TPS’ total revenue in 4Q13.

· Payment Services’ revenue in 4Q13 increased to $49.7 million from $42.3 million (+17.3%) in 4Q12, but decreased from $51.3 million (-3.2%) in 3Q13. Payment Services revenue for FY 2013 increased 25.1% to $191.3 million from $153.0 million in FY 2012. The year over year increases primarily reflect continued growth of international airtime top-up. Payment Services revenue comprised 12.3% of total TPS revenue in 4Q13.

· Hosted Platform Solutions’ revenue in 4Q13 decreased to $13.4 million from $13.8 million (-2.9%) in 4Q12, but increased from $12.9 million (+3.4%) in 3Q13. The majority of Hosted Platform Solutions revenue is generated by IDT’s cable telephony business which is in harvest mode. In FY 2013, Hosted Platform Solutions’ revenue decreased 8.4% to $52.3 million from $57.0 million in FY 2012. Hosted Platform Services’ revenue comprised 3.3% of total TPS revenue in 4Q13.

For FY 2014, IDT anticipates that TPS revenue will continue to increase reflecting both continued growth of retail calling services and expansion of payment services.

TPS’ direct cost of revenue expressed as a percentage of revenue in 4Q13 improved slightly to 84.8% from 85.0% in 4Q12 and deteriorated slightly compared to 84.6% in 3Q13. For FY 2013, TPS’ direct cost of revenue as a percentage of revenue improved to 84.8% from 85.2% in FY 2012.

TPS’ 4Q13 SG&A expense increased to $48.0 million from $46.7 million (+2.9%) in 4Q12 and $46.8 million (+2.5%) in 3Q13. Expressed as a percentage of TPS’ revenue, SG&A declined to 11.9% from 12.3% in 4Q12 and 12.0% in 3Q13, primarily reflecting the scalability of calling and payment services provided over the Boss Revolution platform. For FY 2013, SG&A expense totaled $189.3 million, or 11.9% of TPS’ revenue, compared to $182.2 million, or 12.3% of TPS’ revenue in FY 2012.

§ In FY 2014, IDT expects TPS’ SG&A expense as a percentage of its revenue to slightly increase, as the Company continues its investment in several growth initiatives including further expansion of IDT Telecom’s retail sales force, increased marketing of its existing Boss Revolution suite of products, and introduction of new payment offerings including the roll-out of money remittance services.

TPS’ Adjusted EBITDA in 4Q13 increased to $13.4 million from $10.2 million (+31.8%) in 4Q12 and $13.0 million (+2.9%) in 3Q13. For FY 2013, Adjusted EBITDA increased 42.8% to $51.6 million from $36.1 million in FY 2012 on the strength of robust revenue growth in Retail Communications.

TPS’ income from operations increased to $10.1 million in 4Q13 from $6.9 million (+46.1%) in 4Q12, primarily on the strength of continued revenue growth within Retail Communications. Compared to the prior quarter, income from operations decreased 47.8% from $19.3 million, as 3Q13 results included a non-routine gain of $9.6 million for reversals of previous accruals made for potential litigation settlements. For FY 2013, TPS’ income from operations increased to $48.5 million from $5.9 million in FY 2012. TPS’ income from operations in FY 2013 included the $9.6 million gain from the accrual reversal described above, and TPS’ income from operations in FY 2012 included non-routine charges of $16.0 million for litigation related matters.

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’ 4Q13 revenue was $3.4 million, a 22.9% decrease from $4.4 million in the year ago quarter and unchanged compared to the prior quarter. For FY 2013, revenue decreased 24.8% to $14.5 million from $19.3 million in FY 2012. Income from operations in 4Q13 decreased to $0.4 million from $0.9 million in the year ago quarter, and increased from $0.3 million in the prior quarter. For FY 2013, income from operations decreased 55.1% to $1.8 million from $4.1 million
in FY 2012. Revenue and income from operations were in line with management expectations.

Zedge

Zedge provides consumers with free, high quality mobile games, ringtones and wallpapers accessible from its mobile app, available on both iTunes and Google Play, and its website. The Zedge app has been installed more than 75 million times and has been ranked in the “Top 15” most popular apps in the Google Play store for the last three years. Zedge’s reach and popularity offers advertisers, game developers, musicians, and artists a scalable, non-incentivized, user acquisition platform with global reach.

On August 28, 2013, IDT announced that it has started exploring strategic alternatives for Zedge, including a potential spin-off or IPO. IDT owns approximately 83.1% (69% on a fully diluted basis) of Zedge.

Zedge generates revenues by offering advertisers, game publishers and marketers exposure to its customer base via advertising inventory that it sells on its mobile apps and website. Zedge’s revenue increased to $1.6 million in 4Q13, compared to $1.0 million in 4Q12 and $1.4 million in 3Q13. For FY 2013, Zedge’s revenue was $5.8 million compared to $3.8 million in FY 2012. The increases primarily reflect the growth in Zedge’s user base, driven by the Android app, which increased to 30.6 million current installs as of July 31, 2013, compared to 18.7 million installs a year earlier.

Zedge’s 4Q13 SG&A expense was $1.1 million, compared to $0.7 million in the year ago quarter and $0.9 million in the prior quarter. The increases were primarily due to expansion of the engineering staff. For FY 2013, Zedge’s SG&A expense was $3.8 million compared to $2.7 million in FY 2012.

Zedge’s 4Q13 Adjusted EBITDA was $0.4 million, compared to $0.1 million in the year ago quarter and $0.3 million in the prior quarter. For FY 2013, Zedge’s Adjusted EBITDA was $1.1 million compared to $0.4 million in FY 2012.

Zedge’s income from operations in 4Q13 was $0.2 million compared to a loss from operations of $0.1 million in the year ago quarter and income from operations of $0.1 million in the prior quarter. For FY 2013, Zedge’s income from operations was $0.3 million compared to a loss from operations of $0.2 million in FY 2012. The improvement in operating income primarily reflects the revenue increases during the periods.

ALL OTHER

All Other includes Fabrix, a software development company specializing in highly efficient cloud-based video processing, storage and delivery, IDT’s real estate holdings and other small businesses.

All Other’s 4Q13 revenue increased to $3.2 million from $1.1 million in the year ago quarter and was basically unchanged compared to the prior quarter. For FY 2013, revenue was $12.7 million compared to $6.1 million in FY 2012. The year over year increase was due to Fabrix’s product sales to cable system operators and other media content providers, who utilize Fabrix’s software to efficiently store, process and distribute video for both remote DVR and deep storage applications.

All Other’s direct cost of revenue expressed as a percentage of revenue improved to 18.4% in 4Q13 from 30.9% in 4Q12, but deteriorated from 11.3% in the prior quarter. For FY 2013, direct cost of revenue as a percentage of revenue was 13.2% compared to 20.6% in FY 2012.

All Other’s SG&A expense was $1.5 million in 4Q13 compared to $1.1 million in 4Q12 and $1.3 million in 3Q13. For FY 2013, SG&A expense was $5.1 million compared to $2.5 million in FY 2012.

Research and development expense, which is entirely generated by Fabrix, was $2.2 million in 4Q13 compared to $1.2 million in the year ago quarter and $1.7 million in the prior quarter. For FY 2013, R&D expense was $7.2 million compared to $4.6 million in FY 2012.

All Other’s Adjusted EBITDA in 4Q13 was a loss of $1.1 million, compared to a loss of $1.6 million in the year ago quarter and a loss of $0.2 million in 3Q13. For FY 2013, the Adjusted EBITDA loss decreased to $1.2 million from $2.2 million in FY 2012 on the strength of Fabrix’ revenue growth.

In 4Q13, All Other recorded an impairment write-down of $4.4 million on IDT’s former headquarters building at 520 Broad Street in Newark, New Jersey. Including the impact of this impairment, All Other’s loss from operations in 4Q13 was $5.9 million, compared to a loss from operations of $2.0 million in the year ago quarter and a loss from operations of $0.7 million in the prior quarter. For FY 2013, All Other’s loss from operations was $7.3 million (including the $4.4 million impairment write-down) compared to $3.7 million in FY 2012.

CONSOLIDATED RESULTS AND BALANCE SHEET

Consolidated results in all periods presented include corporate overhead. Corporate G&A expense was $3.4 million in 4Q13, compared to $2.9 million in the year ago quarter and $3.4 million in the prior quarter. For FY 2013, corporate G&A expense was $13.9 million compared $13.0 million in FY 2012.

Net loss attributable to IDT in 4Q13 was $3.7 million, compared to net income attributable to IDT of $37.3 million in 4Q12 and $8.7 million in 3Q13. Net income attributable to IDT in 4Q12 included an income tax benefit of $36.6 million. In 4Q12, IDT reversed a portion of the valuation allowance that had been applied against its U.S. deferred income tax assets due to its profitability in the United States and expected future profitability. This reversal did not impact IDT’s cash position.

Non-GAAP net income was $2.9 million in 4Q13, compared to $5.3 million in the year ago quarter and $7.3 million in the prior quarter. For FY 2013, Non-GAAP net income totaled $24.4 million compared to $29.8 million in FY 2012. Non-GAAP diluted EPS was $0.13 in 4Q13 compared to $0.24 in the year ago quarter and $0.33 in the prior quarter. For FY 2013, diluted Non-GAAP EPS was $1.09 compared to $1.35 in FY 2012. Non-GAAP Net Income and Non-GAAP diluted EPS exclude the impact of the impairment write-down of IDT’s former headquarters building and certain other components of GAAP EPS that are detailed in the reconciliation provided at the end of this release.

As of July 31, 2013, IDT had $156.6 million of unrestricted cash, cash equivalents and marketable securities. In addition, IDT had an aggregate of $42.4 million of current and long-term restricted cash and cash equivalents, which included $31.1 million in customer deposits held at IDT’s Gibraltar based bank. Notes payable, consisting primarily of mortgage loans against IDT-owned real estate, totaled $7.2 million. During 4Q13, IDT paid $21.1 million, representing the outstanding balance on the mortgage on its building located at 520 Broad Street in Newark, New Jersey. At July 31, 2013, current liabilities included $21.1 million borrowed under IDT Telecom’s revolving credit facility.

Net cash provided by operating activities in FY 2013 was $59.3 million, compared to $36.5 million
in FY 2012. Capital expenditures in these periods were $14.5 million and $10.8 million, respectively.

DIVIDENDS

On July 24, 2013, IDT’s Board of Directors declared a special cash dividend of $0.08 per share which was paid on September 10, 2013 to stockholders of record of IDT’s Class A and Class B common stock as of the close of business on August 30, 2013.

IDT anticipates resuming regular quarterly dividends commencing with a $0.15 payment for the first quarter of fiscal 2014, which it expects to pay in December 2013, provided that the first quarter’s results are consistent with the Company’s expectations.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION

· IDT will host a conference call at 5:00 PM ET today, October 3^rd, beginning with management’s discussion of financial and operational results, business outlook and strategy followed by Q&A.

· To listen to the conference call and/or participate in the Q&A, dial toll-free 1-877-317-6789 (from U.S.) or 1-412-317-6789 (international) and request the IDT Corporation call.

· An audio replay of the conference call will be available one hour after the call concludes through October 10, 2012 by dialing 1-877-344-7529 (conference code 10034068), or by streaming from the IDT website investor relations site: www.idt.net/about/ir.

· Copies of this release – including the reconciliation of the non-GAAP financial measures that are both used herein and referenced during management’s discussion of results – are available in the Investor Relations portion of IDT’s website, at https://www.idt.net/about/ir.

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 financial resources around the world. IDT’s carrier services business is a global leader in wholesale voice termination. Other IDT technology based holdings include Zedge (www.zedge.net), a leading consumer destination for free ringtones, wallpapers and mobile games, and Fabrix Systems (www.fabrixsystems.com), a software development company specializing in highly efficient cloud-based video processing, storage and delivery. For more information, visit www.idt.net.

In this press release, all statements that are not purely about historical facts, including, but not limited to, payment of dividends and 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, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. These factors include, but are not limited to, the following: potential declines in prices for our products and services; our ability to maintain and grow our telecommunication businesses; availability of termination capacity to particular destinations; our ability to maintain carrier agreements with foreign carriers; our ability to obtain telecommunications products or services required for our services; the financial stability of our major customers; our ability to remain profitable and improve our cash flow; impact of government regulation; effectiveness of our marketing and distribution efforts; and general economic conditions. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Contact:
IDT Corporation Investor Relations
Bill Ulrey
william.ulrey@idt.net
973-438-3838

IDT CORPORATION

CONSOLIDATED BALANCE SHEETS


July 31 (in thousands)	2013	2012
	(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$ 146,960	$ 148,905
Restricted cash and cash equivalents—short-term	34,988	12,636
Marketable securities	9,684	—
Trade accounts receivable, net of allowance for doubtful accounts of $13,079 and $13,044 at July 31, 2013 and 2012, respectively	65,078	83,017
Prepaid expenses	19,175	18,792
Deferred income tax assets, net—current portion	1,689	5,142
Other current assets	12,730	17,522
Assets of discontinued operations	—	2,644
TOTAL CURRENT ASSETS	290,304	288,658
Property, plant and equipment, net	80,742	85,567
Goodwill	14,807	14,614
Other intangibles, net	1,390	1,907
Investments	9,605	7,133
Restricted cash and cash equivalents—long-term	7,407	9,466
Deferred income tax assets, net—long-term portion	20,000	31,744
Other assets	11,152	12,025
TOTAL ASSETS	$ 435,407	$ 451,114
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Revolving credit loan payable	$ &n bsp; 21,062	$ —
Trade accounts payable	39,323	39,844
Accrued expenses	145,432	160,104
Deferred revenue	91,227	84,364
Customer deposits	28,663	10,524
Income taxes payable	761	1,317
Dividends payable	1,837	—
Notes payable—current portion	535	560
Other current liabilities	4,829	3,241
Liabilities of discontinued operations	—	1,411
TOTAL CURRENT LIABILITIES	333,669	301,365
Notes payable—long-term portion	6,624	29,716
Other liabilities	5,978	17,308
TOTAL LIABILITIES	346,271	348,389
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 July 31, 2013 and 2012	33	33
Class B common stock, $.01 par value; authorized shares—200,000; 24,275 and 24,112 shares issued and 21,397 and 21,342 shares outstanding at July 31, 2013 and 2012, respectively	243	241
Additional paid-in capital	388,533	395,869
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 2,878 and 2,770 sh ares of Class B common stock at July 31, 2013 and 2012, respectively	(98,836 )	(97,757 )
Accumulated other comprehensive income	2,341	202
Accumulated deficit	(203,711 )	(196,358 )
Total IDT Corporation stockholders’ equity	88,603	102,230
Noncontrolling interests	533	495
TOTAL EQUITY	89,136	102,725
TOTAL LIABILITIES AND EQUITY	$ 435,407	$ 451,114

IDT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME


Year ended July 31 (in thousands, except per share data)	2013	2012	2011
	(unaudited)
REVENUES	$ 1,620,617	$ 1,506,283	$ 1,351,416
COSTS AND EXPENSES:
Direct cost of revenues (exclusive of depreciation and amortization)	1,355,573	1,269,386	1,119,606
Selling, general and administrative (i)	218,469	206,906	202,410
Depreciation and amortization	14,910	16,648	20,952
Research and development	7,166	4,569	2,834
Impairment of building and improvements	4,359	—	—
Severance and other charges	—	—	1,053
TOTAL COSTS AND EXPENSES	1,600,477	1,497,509	1,346,855
Other operating gains (losses), net	9,251	(15,870 )	2,824
Income (loss) from operations	29,391	(7,096 )	7,385
Interest expense, net	(824 )	(2,985 )	(3,698 )
Other income (expense), net	5,383	(1,767 )	3,912
Income (loss) from continuing operations before income taxes	33,950	(11,848 )	7,599
(Provision for) benefit from income taxes	(15,872 )	42,782	13,388
Income from continuing operations	18,078	30,934	20,987
Discontinued operations, net of tax:
(Loss) income from discontinued operations	(4,634 )	5,851	(1,116 )
Income on sale of discontinued operations	—	2,000	3,500
Total discontinued operations	(4,634 )	7,851	2,384
NET INCOME	13,444	38,785	23,371
Net (income) loss attributable to noncontrolling interests	(1,837)	(137 )	3,441
NET INCOME ATTRIBUTABLE TO IDT CORPORATION	$ 11,607	$ 38,648	$ 26,812
Amounts attributable to IDT Corporation common stockholders:
Income from continuing operations	$ 16,048	$ 29,901	$ 20,244
(Loss) income from discontinued operations	(4,441)	8,747	6,568
Net income	$ 11,607	$ 38,648	$ 26,812
Earnings per share attributable to IDT Corporation common stockholders:
Basic:
Income from continuing operations	$ 0.77	$ 1.45	$ 0.98
(Loss) income from discontinued operations	(0.21)	0.42	0.32
Net income	$ 0.56	$ 1.87	$ 1.30
Weighted-average number of shares used in calculation of basic earnings per share	20,876	20,717	20,565
Diluted:
Income from continuing operations	$ 0.72	$ 1.36	$ 0.90
(Loss) income from discontinued operations	(0.20)	0.39	0.29
Net income	$ 0.52	$ 1.75	$ 1.19
Weighted-average number of shares used in calculation of diluted earnings per share	22,315	22,060	22,482
(i) Stock-based compensation included in selling, general and administrative expenses	$ 5,875	$ 3,325	$ 3,414

IDT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS


Year ended July 31 (in thousands)	2013	2012	2011
	(unaudited)
OPERATING ACTIVITIES
Net income	$ 13,444	$ 38,785	$ 23,371
Adjustments to reconcile net income to net cash provided by operating activities:
Net loss (income) from discontinued operations	4,634	(7,851 )	(2,384 )
Depreciation and amortization	14,910	16,648	20,952
Impairment of building and improvements	4,359	—	—
Severance and other payments	—	—	(2,978 )
Deferred income taxes	15,198	(37,925 )	(2,130 )
Provision for doubtful accounts receivable < /td>	2,743	2,098	3,319
Net realized gains from marketable securities and investments	(586)	—	(5,379 )
Gain on proceeds from insurance	—	—	(2,637 )
Interest in the equity of investments	(1,968 )	(1,157 )	57
Stock-based compensation	5,875	3,325	4,081
Change in assets and liabilities:
Restricted cash and cash equivalents	(20,943 )	(5,733 )	(5,011 )
Trade accounts receivable	17,606	8,728	(24,974 )
Prepaid expenses, other current assets and other assets	2,890	(2,100 )	(1,781 )
Trade accounts payable, accrued expenses, other current liabilities and other liabilities	(22,578)	10,703	39,201
Customer deposits	17,998	9,057	130
Income taxes payable	(576 )	(4,721 )	(1,430 )
Deferred revenue	6,253	6,666	8,042
Net cash provided by operating activities	59,259	36,523	50,449
INVESTING ACTIVITIES
Capital expenditures	(14,537 )	(10,830 )	(13,300 )
Deposit on purchase of leasehold interest in building	(950 )	—	—
Collection (issuance) of notes receivable, net	750	—	(88 )
Increase in investments	(1,219)	—	(3,015 )
Proceeds from sales and redemptions of investments	114	3,169	2,446
Purchases of other intangibles	(93)	—	—
Proceeds from sales of buildings	—	—	100
Proceeds from insurance	—	—	3,524
Purchases of marketable securities	(11,414)	—	—
Proceeds from marketable securities	1,712	—	5,731
Purchases of certificates of deposit	—	—	(5,263 )
Proceeds from maturities of certificates of deposit	—	3,300	2,258
Net cash used in investing activities	(25,637 )	(4,361 )	(7,607 )
FINANCING ACTIVITIES
Cash of subsidiaries deconsolidated as a result of spin-offs	(15,000 )	(104,243 )	—
Dividends paid	(17,123 )	(15,014 )	(15,178 )
Distributions to noncontrolling interests	(2,245 )	(1,580 )	(2,010 )
Purchases of stock of subsidiary	(1,804 )	—	—
Proceeds from sales of stock and exercise of stock options of subsidiary	154	133	—
Proceeds from exercise of stock options	921	—	1,674
Repayments of capital lease obligations	—	(1,781 )	(4,821 )
Proceeds from revolving credit loan payable	21,062	—	&nb sp; —
Repayments of borrowings	(21,304 )	(332 )	(4,602 )
Repurchases of Class B common stock from Howard S. Jonas	—	—	(7,499 )
Repurchases of common stock and Class B common stock	(1,079 )	(2,816 )	(205 )
Net cash used in financing activities	(36,418 )	(125,633 )	(32,641 )
DISCONTINUED OPERATIONS
Net cash (used in) provided by operating activities	(2,638 )	(1,984 )	6,389
Net cash (used in) provided by investing activities	(350 )	4,992	(4,026 )
Net cash provided by financing activities	&nb sp; —	—	8,472
Net cash (used in) provided by discontinued operations	(2,988 )	3,008	10,835
Effect of exchange rate changes on cash and cash equivalents	1,241	(2,335 )	1,512
Net (decrease) increase in cash and cash equivalents	(4,543 )	(92,798 )	22,548
Cash and cash equivalents (including discontinued operations) at beginning of year	151,503	244,301	221,753
Cash and cash equivalents (including discontinued operations) at end of year	146,960	151,503	244,301
Less cash and cash equivalents of discontinued operations at end of year	—	(2,598 )	& nbsp; (24,475 )
Cash and cash equivalents (excluding discontinued operations) at end of year	$ 146,960	$ 148,905	$ 219,826
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash payments made for interest	$ 1,286	$ 3,621	$ 5,008
Cash payments made for income taxes	$ 483	$ 1,049	$ 4,235
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING AND INVESTING ACTIVITIES
Escrow account balances included in other current assets used to reduce notes payable	$ 1,976	$ —	$ —
Net liabilities excluding cash and cash equivalents of subsidiaries deconsolidated as a result of spin-offs	$ 1,341	$ 18,803	$ —

Please see the attached pdf file for a complete copy of the IDT fou
rth quarter fiscal 2013 earnings release including the non-GAAP reconciliations

IDT Corporation to Report Fourth Quarter and Full Year Fiscal 2013 Results

IDT Corporation (NYSE:IDT) will report its financial and operational
results for the fourth quarter and full year fiscal 2013 on Thursday,
October 3, 2013 after market close.

The fourth quarter and full year 2013 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) as
early as 4:00 PM ET on October 3^rd. As in prior quarters, the
earnings release will not be issued over a wire service.

IDT’s conference call will begin at 5:00 PM ET on the 3^rd
with management’s discussion of financial and operational results,
business outlook and strategy followed by Q&A with analysts and
investors.

To participate in the Q&A, dial toll-free 1-877-317-6789 (from U.S.) or
1-412-317-6789 (international) and request the IDT Corporation call.

An audio replay of the conference call will be available one hour after
the call concludes through October 10, 2013 by dialing 1-877-344-7529
(conference code 10034068), and by streaming from the IDT website
investor relations site: www.idt.net/about/ir.

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 financial resources around the
world. IDT’s carrier services business is a global leader in wholesale
voice termination. Other IDT technology based holdings include Zedge (www.zedge.net)
and Fabrix Systems (www.fabrixsystems.com).
For more information, visit www.idt.net.

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

IDT to Pursue Strategic Alternatives for Zedge

IDT Corporation (NYSE: IDT) announced today that its Board of Directors
had instructed management to determine and pursue strategic alternatives
to unlock the value in its Zedge subsidiary, including a spinoff or IPO
of the Company. IDT intends to retain financial advisors to assist it in
analyzing and executing on the best path.

Zedge is the world’s premier discovery platform offering free, high
quality games, ringtones and wallpapers. Zedge’s app, available on
Google Play and iTunes, has been installed more than 70 million times
and has ranked in the “Top 15” in Google Play for three years running.
Zedge offers a fully non-incentivized, scalable, distribution platform
to advertisers, artists and developers seeking high quality customers.
IDT owns approximately 83% of Zedge.

“We remain committed to providing Zedgers with a great discovery service
that offers a personalized catalogue of free and relevant, quality games
and personalization content, and this dedication has resulted in
exceptional growth catapulting us to the top of the charts,” said Tom
Arnoy, Zedge’s CEO and Co-Founder. “With access to growth capital we
will be able to continue expanding our customer base, accelerating user
engagement and innovating new and exciting offerings. Our experienced
management team is excited by the prospect of getting the company to the
next level and I am happy to have Jonathan Reich, our COO, on board
considering his previous success in realizing value from IDT’s
incubations.”

“Zedge is one of the untapped gems in our portfolio and is on track to
become the de-facto standard for mobile content acquisition,” said
Howard Jonas, IDT’s Chairman and CEO. “Zedge has an incredibly talented
team, market leading position and outstanding technology. The
marketplace does not currently provide fair value for Zedge within the
IDT family, and we will find the right way to realize this worth for our
stockholders.”

In this press release, all statements 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, including, but not limited
to, those described in our most recent Form 10 filing (under the
headings “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations”), which may be revised or
supplemented in subsequent reports on SEC Forms 10-K, 10-Q and 8-K. We
are under no obligation, and expressly disclaim any obligation, to
update the forward-looking statements in this press release, whether as
a result of new information, future events or otherwise.

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.idt.net.

About Zedge

Zedge is the world’s leading destination for mobile phone consumers
looking for free and relevant, high quality games, apps and
personalization content – ringtones, wallpapers and alerts. Every month
mobile consumers come to Zedge to download millions of games, apps,
wallpapers, themes, ringtones and alerts to their feature phones, smart
phones and tablets. Zedge is known for its great user experience,
quality and diversity of content and supports virtually every device on
the market today.

Zedge is headquartered in New York City and Trondheim, Norway with
sales/business development and technology/product being driven from
these respective locations. Zedge’s investors include IDT Corporation
(NYSE: IDT) – www.idt.net
– and Shaman II.

For more information, please visit the Zedge web site at www.zedge.net,
or follow Zedge on Facebook at www.facebook.com/officialzedge
or on Twitter at www.twitter.com/zedge.

Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130828006267/en/

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

IDT Launches Boss Revolution International Money Transfer

New Service Enables Transfer of Funds Overseas Reliably, Affordably
and Conveniently

IDT Corporation (NYSE: IDT) today announced that its subsidiary, IDT
Payment Services, a licensed money transmitter, has launched an
international money transfer service over its flagship Boss Revolution
payment platform. Boss Revolution customers can now send money overseas
reliably, affordably and conveniently.

“Millions of customers trust Boss Revolution for our high quality
international long distance calling and airtime top-up services,” said
Bill Pereira, CEO of IDT Telecom. “We are introducing the Boss
Revolution money transfer service with the same high standards of
reliability, affordability and convenience. Boss Revolution customers
now can also send money directly to family and friends knowing that
their funds will arrive securely and quickly. And, as always, they do
not need a credit card or bank account to use any Boss Revolution
service.”

Boss Revolution currently offers money transfer to recipients in eight
Latin American countries: Mexico, Costa Rica, Ecuador, El Salvador
Guatemala, Honduras, Nicaragua and Panama. Within a year, Boss
Revolution money transfer is expected to expand to include most of the
remaining countries in Latin America, over twenty African nations, and
key destinations in Asia including the Philippines, China and Vietnam.

In the eight currently available Latin American countries, Boss
Revolution has over 6,000 locations providing points of payment
including bank branches and trusted retailers. By the end of this year,
recipients will be able to collect funds at any one of over 21,000
points of payment in Latin America alone.

Boss Revolution customers will be able to select from a comprehensive
portfolio of overseas payment options at many of these payment locations
including cash pick-up, direct deposit, or home delivery where available.

“IDT Payment Services Inc. is initially launching its money transfer
service in New Jersey. It is currently licensed to provide money
remittance in 37 states, and we expect it to be licensed and operating
in nearly every state, the District of Columbia and Puerto Rico by the
end of the year,” said Alfredo O’Hagan, Senior Vice President of
Consumer Payments at IDT Telecom.

Boss Revolution’s payment service offerings currently include domestic
and international airtime top-up, and, most recently, domestic bill
payment. In the coming months, additional products and services will be
offered over the Boss Revolution payments platform to provide retailers
and customers with a full suite of convenient and affordable telephony
and payment services accessible to both banked and un-banked customers.

In this press release, all statements 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, including, but not limited
to, those described in our most recent Form 10 filing (under the
headings “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations”), which may be revised or
supplemented in subsequent reports on SEC Forms 10-K, 10-Q and 8-K. We
are under no obligation, and expressly disclaim any obligation, to
update the forward-looking statements in this press release, whether as
a result of new information, future events or otherwise.

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.idt.net.

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

IDT Corporation Announces Payment of Special Dividend; Anticipated Resumption of Quarterly Dividends in Fiscal 2014

The Board of Directors of IDT Corporation (NYSE: IDT) today declared a
special dividend of $0.08 per share to holders of its Class A and Class
B common stock. IDT also announced that it expects to resume payment of
regular quarterly dividends commencing with the first quarter of its
2014 fiscal year (the three months ending October 31, 2013) which it
expects to pay in December 2013. In November 2012, IDT paid its 2013
fiscal year dividends in advance with a special dividend of $0.60 per
share.

“IDT has continued to grow and generate strong cash flow throughout
2013. In light of these positive trends, and the impressive performance
across the Company’s divisions and business units, we are declaring this
special year-end dividend,” said Howard Jonas, IDT’s Chairman and CEO.

“We expect to resume regular quarterly dividends for fiscal 2014, and
will establish the quarterly dividend amount based on the Company’s
performance and outlook during the first quarter,” Mr. Jonas added. “In
addition, we expect to complete the spin-off of Straight Path
Communications (NYSE MKT: STRP) to our stockholders on July 31st, and
thereby continue to create and share value with IDT stockholders whether
through the increased market value of our company, paying cash
dividends, and stock repurchases or through distributing separate
businesses through spin-offs such as Genie Energy (NYSE: GNE), CTM Media
(CTMMA, CTMMB) and now Straight Path. Looking ahead, we expect to
continue to create value for our stockholders through additional
shareholder friendly actions.”

The special dividend will be paid on September 10, 2013 to stockholders
of record as of the close of business on August 30, 2013. The
ex-dividend date will be August 28, 2013.

The distribution will be treated as an ordinary dividend for tax
purposes.

In this press release, all statements 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, including, but not limited
to, those described in our most recent Form 10-K filing (under the
headings “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations”), which may be revised or
supplemented in subsequent reports on SEC Forms 10-K, 10-Q and 8-K. We
are under no obligation, and expressly disclaim any obligation, to
update the forward-looking statements in this press release, whether as
a result of new information, future events or otherwise.

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.idt.net.
IDT also holds majority shares in two technology companies: Fabrix
Systems (www.fabrixsystems.com),
a software development company specializing in highly efficient
cloud-based video processing, storage and delivery, and; Zedge (www.zedge.net),
a platform – including popular Android and iOS apps – that allows users
to share and obtain content to personalize mobile phones and tablets.

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

IDT Corp. Announces Details of Straight Path Spin-Off

NEWARK, N.J.–(BUSINESS WIRE)–IDT Corporation (NYSE: IDT) today announced that the Securities and Exchange Commission has declared effective the Registration Statement on Form 10 for the spin-off of its Straight Path Communications Inc. (SPCI) subsidiary to IDT stockholders.

SPCI has extensive holdings of FCC wireless spectrum licenses and a portfolio of patents primarily related to communications over computer networks. Straight Path Spectrum leases its extensive holdings of 38 and 28 GHz fixed wireless spectrum licenses. The licenses, which cover virtually the entire United States and include substantial volumes of bandwidth in all major metropolitan areas, were purchased by IDT from the bankruptcy estate of Winstar Communications.

Straight Path IP Group holds, enforces and licenses patent rights pertaining to communications over computer networks, such as the Internet.

SPCI will be spun off with a management team dedicated to realizing value from these intangible assets, and will be capitalized with approximately $15 million in cash. A copy of the amended Form 10 Information Statement is available on the IDT website at www.idt.net/about/ir.

In connection with the spin-off, and subject to the approval of SPCI Class B common stock for listing on the NYSE MKT LLC:

The spin-off will be effective at 11:59 p.m. EDT on the distribution date, on our about July 31^st, 2013.
On the distribution date, each IDT stockholder as of 5:00 PM EDT on the record date, July 25^th, 2013, will receive one share of SPCI Class A common stock for every two shares of IDT Class A common stock and one share of SPCI Class B common stock for every two shares of IDT Class B common stock.
Beginning on July 23^rd, 2013, the entitlement to shares of SPCI Class B common stock will trade on the NYSE MKT “when issued” market with the ticker symbol STRP WI. On the first day of trading following the distribution date, “when issued” trading will cease, and “regular-way” trading of SPCI Class B common stock will begin on the NYSE MKT with the ticker symbol “STRP”.
Also beginning on July 23^rd, 2013 and continuing through the distribution date, there will be two NYSE markets in IDT Class B common stock: a “regular-way” market and an “ex-distribution” market. Shares of IDT Class B common stock exchanged in the “regular-way” market will trade with an entitlement to receive shares of SPCI Class B common stock through the distribution. Shares of IDT Class B common stock exchanged in the “ex-distribution” market will trade without such an entitlement.
IDT has received a legal opinion from Pryor Cashman LLP that the distribution should qualify as tax-free transaction for U.S. federal income tax purposes. However, cash distributed in lieu of fractional shares generally will be taxable to the recipient stockholders. Stockholders are urged to consult their financial advisors and tax advisors regarding the particular consequences of the distribution in their situation, including, without limitation, the specific implications of selling IDT common stock on or prior to the Distribution Date and the applicability and effect of any U.S. federal, state, local and foreign tax laws.
SPCI Class B common stock has been assigned CUSIP # 862578101

In this press release, all statements 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, including, but not limited to, those described in our most recent Form 10 filing (under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

About Straight Path Communications Inc. (SPCI):

Straight Path Communications Inc., (NYSE MKT: STRP) leases its extensive holdings of 38 and 28 GHz fixed wireless spectrum licenses through its Straight Path Spectrum subsidiary. SPCI holds and licenses patent rights covering communications over computer networks, such as the Internet, through its Straight Path IP Group subsidiary.

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.idt.net.

IDT has spawned several other successful companies including Net2Phone (formerly NTOP on NASDAQ), for which AT&T invested $1.4 billion for a 32% share in 2000, IDT Entertainment, which was sold to Liberty Global (NASDAQ: LBTYA) in 2006 for $186 million and became known as Starz Distribution (the motion picture, animation, television and home video operating unit of Starz (NASDAQ: STRZA, STRZB)), and Genie Energy (NYSE: GNE), which was spun off to IDT stockholders in 2011 and currently has a market cap of over $220 million.

Contacts

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

IDT Corporation Reports Third Quarter Fiscal 2013 Results

NEWARK, NJ — June 6, 2013: IDT Corporation (NYSE: IDT) reported diluted EPS of $0.39 and non-GAAP diluted EPS of $0.31 on revenue of $397.2 million and Adjusted EBITDA of $9.1 million for its third quarter of fiscal 2013 (3Q13), the three months ended April 30, 2013.

Howard Jonas, IDT’s Chairman and CEO, said, “Growth in the third quarter was fueled by IDT Telecom’s Retail Communications and Payment Services offerings. We are pleased by the continued success of our retail offerings, and are executing on our plans to further expand our portfolio of payment services. We have just soft-launched domestic bill payment services and a prepaid virtual Visa offering, and we expect to begin rolling out international money remittance services on a limited basis in the fourth quarter.

“Given the consistently strong performance of IDT during the first three quarters of fiscal 2013 and the solid execution on our growth initiatives, IDT is in a strong position to resume paying a regular quarterly dividend to its stock holders in fiscal 2014, since we prepaid the fiscal year 2013 dividend earlier this fiscal year. We are also moving forward on the spin-off of Straight Path Communications as part of our continuing efforts to create shareholder value,” Jonas concluded.

3Q13 OVERVIEW

(All comparisons are for 3Q13 to 3Q12)

· Revenue increased 4.6% to $397.2 million, the 13^th consecutive quarter of year over year revenue growth

· Minutes of use decreased 0.4% to 7.8 billion

· SG&A expense increased 7.8% to $55.2 million

· Adjusted EBITDA increased 21.9% to $9.1 million

· Income from operations increased to $14.7 million compared to $2.2 million

· Operating margin increased 310 basis points to 3.7%

· Net income attributable to IDT increased to $8.7 million compared to $3.0 million

· Non-GAAP net income of $6.9 million compared to $9.8 million

· Diluted non-GAAP EPS of $0.31 compared to $0.44

· Net cash provided by operating activities of $22.4 million compared to $24.4 million

· On May 1, 2013, IDT paid in full the $21.1 million mortgage note balance on its property at 520 Broad Street in Newark

· On May 6, 2013, IDT filed for a spin-off of Straight Path Communications, Inc. (SPCI) to its stockholders

NOTES:

Adjusted EBITDA, non-GAAP net income and non-GAAP EPS for all periods presented are non-GAAP measures intended to provide useful information that may be more indicative of IDT’s or the relevant segment’s core operating results than the nearest GAAP measures. 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.

IDT’s operating results for all prior periods presented have been adjusted to reflect the spin-off of Genie Energy which was effected in October 2011. Genie Energy is accounted for as discontinued operations for all periods presented.

OPERATING RESULTS BY SEGMENT

TPS

Telecom Platform Services (TPS), which accounted for 97.9% of IDT’s revenue in 3Q13, markets and distributes multiple communications and payment services across four business verticals: Retail Communications, Wholesale Termination Services, Payment Services and Hosted Platform Solutions.

TPS’ revenue in 3Q13 increased 4.5% year over year and decreased 3.4% sequentially, to $388.9 million. The overall sequential decrease reflects, for the most part, the fact that that the third quarter of IDT’s fiscal year contains three fewer days than the second quarter. The second quarter also includes the holiday season, which is a significant seasonal driver of international long distance traffic.

· Retail Communications’ revenue increased 19.1% year over year and 2.7% sequentially to $165.4 million. Both year over year and sequentially, increased sales of Boss Revolution Pinless calling services in the U.S. more than offset declines in sales of other retail offerings, including traditional calling cards sold in the US and Europe. Retail Communications’ revenue constituted 42.5% of total TPS revenue in 3Q13.

· &
nbsp; Wholesale Termination Services’ revenue decreased 11.4% year over year and 12.6% sequentially to $159.3 million. Wholesale minutes of use also declined year over year and sequentially. The declines in both revenue and minutes were the result of an industry-wide increase in termination rates to certain key destinations which, while improving revenue per minute, resulted in a decline in minutes of use. We expect the net impact of such market pricing movements for the next few months to continue to be neutral to positive to our operating profit, despite potentially impacting negatively our top line revenue and minutes. The sequential declines in revenue and minutes of use also reflect, in part, the fact that the third quarter has three fewer days than the second quarter. Wholesale Termination Services’ revenue constituted 41.0% of total TPS revenue in 3Q13.

· Payment Services’ revenue increased 30.2% year over year and 10.1% sequentially to $51.3 million, primarily reflecting continued growth of international mobile top-up (IMTU) sales, including IMTU sales over the Boss Revolution payment platform. Payment Services’ revenue constituted 13.2% of total TPS revenue in 3Q13.

· Hosted Platform Solutions’ revenue declined 7.4% year over year and increased 0.1% sequentially to $12.9 million. Year over year, the decline is due to our cable telephony service offering, which has been in harvest mode. Hosted Platform Solutions’ revenue constituted 3.3% of total TPS revenue in 3Q13.

TPS’ direct cost of revenues was $329.1 million, a 3.7% increase year over year and a 3.8% decrease sequentially. Direct cost as a percentage of revenues decreased to 84.6% in 3Q13, compared to 85.3% in 3Q12 and 84.9% in 2Q13. The year over year and sequential decreases were driven primarily by the growth of Retail Communications revenue compared to the decrease in Wholesale Termination Services revenue, resulting in a positive revenue mix shift.

TPS’ SG&A expense was $46.8 million, a 4.2% increase year over year and a 1.0% decrease sequentially. The year over year increase was due primarily to an increase in credit card processing fees associated with distributors, retailers and customers who re-charge or top-up their accounts with a credit card, while the sequential decrease was due primarily to a decline in legal expenses. IDT continues to expect that TPS’ SG&A expense will increase at a more rapid pace in upcoming quarters as it continues to roll out new payment products and services, and increases the scope of sales and marketing activities. As a percentage of TPS’ revenue, TPS’ SG&A expense was 12.0% compared to 12.1% in 3Q12 and 11.8% in 2Q13.

TPS’ Adjusted EBITDA was $13.0 million, a 31.5% increase year over year and a 2.2% decrease sequentially. Adjusted EBITDA as a percentage of revenue was 3.3%, compared to 2.7% in 3Q12, and 3.3% in 2Q13. The year over year improvement primarily reflects the continued growth in top line revenue and margin expansion, while the sequential decrease primarily reflects the impact of having three fewer days in 3Q13 compared to 2Q13.

TPS’ depreciation and amortization expense was $3.3 million, a 7.3% decrease year over year and a 1.6% increase sequentially. The year over year decrease reflects the deployment of technologies that require less CAPEX in recent years, and the full depreciation of more equipment. The sequential increase reflects a change in the estimated useful lives of certain equipment which increased the depreciation on these assets.

TPS’ income from operations was $19.3 million, compared to a loss from operations of $0.1 million in 3Q12, and income from operations of $10.1 million in 2Q13. Income from operations in 3Q13 included a gain of $9.6 million reflecting reversals of previous accruals made for potential legal settlements. In 3Q12, income from operations included a $6.5 million charge related to four legal matters.

CPS

Consumer Phone Services (CPS) sells local and long distance services. 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’ 3Q13 revenue was $3.4 million, compared to $4.6 million in the year ago quarter and $3.7 million in the prior quarter. Income from operations was $0.3 million, $1.0 million and $0.4 million for the same periods, respectively. The year over year declines in revenue and income from operations were in line with management’s expectations.

ALL OTHER

All Other includes: Fabrix, a software development company specializing in highly efficient cloud-based video processing, storage and delivery; Zedge, a service providing mobile games and personalization content such as ringtones and wallpapers through Android and iOS apps and IDT’s real estate holdings. All Other also includes Straight Path Communications, Inc. (SPCI), which holds IDT’s interests in Straight Path Spectrum, which holds, leases and markets fixed wireless spectrum licenses, and Straight Path IP Group, which holds intellectual property primarily related to communications over the Internet and the licensing and other businesses related to this intellectual property. IDT has announced its intention to spin off SPCI to its shareholders and, in connection with the spin-off, filed an initial Registration Statement with the Securities and Exchange Commission.

All Other’s 3Q13 revenue was $4.9 million, a 60.1% increase compared to the year ago quarter and a 6.9% decrease sequentially. The year over year increases were attributable primarily to Fabrix and Zedge. The sequential decrease reflects declines in revenue generated by Fabrix and Zedge. All Other’s 3Q13 loss from operations was $1.6 million, compared to income from operations of $4.3 million in 3Q12 and a loss from operations of $0.8 million in 2Q13. Income from operations in 3Q12 included a $5.3 million gain recorded by Straight Path Spectrum on the sale of rights in wireless spectrum licenses.

FABRIX: Fabrix’s revenue was $2.6 million in 3Q13 compared to $1.3 million in 3Q12 and $2.8 million in 2Q13. Fabrix’s revenue is generally recognized from the date on which delivered orders are accepted by the customer over the term of the related software support agreements.

ZEDGE: As of May 31st, Zedge has surpassed 62 million downloads on Android, and remains among the top fifteen most popular free apps available in Google Play. The Zedge iOS app, launched in December, has been installed more than 3 million times. In 4Q13, Zedge expects to offer ringtones in the iOS app which will help drive additional customer growth. On Android, game publishers continue turning to Zedge for user acquisition due to Zedge’s expertise in non-incentivized games discovery.
Zedge generated revenue of $1.4 million in 3Q13 compared to $0.9 million in 3Q12 and $1.6 million in 2Q13.

CONSOLIDATED RESULTS AND BALANCE SHEET

Corporate G&A expense in 3Q13 was $3.4 million, including $0.9 million in non-cash compensation. G&A expense increased 13.4% year over year and decreased 23.9% sequentially. The year over year increase reflects primarily an increase in stock based compensation due to a July 2012 grant. The sequential decrease is due primarily to a $0.9 million donation to the IDT Charitable Foundation in 2Q13.

Provision for income taxes in 3Q13 was $7.6 million compared to a benefit from income taxes of $2.3 million in the year ago quarter and provision for income taxes of $3.1 million in 2Q13. In 4Q12, IDT reversed a portion of the valuation allowance that had been applied against its U.S. deferred income tax assets due to the current and expected future profitability of its operations in the United States. Because of this reversal, IDT records a provision for federal income tax in periods when it has pretax income. Actual U.S. federal cash taxes paid are expected to be minimal for the foreseeable future, as IDT continues to utilize its NOLs. As of April 30, 2013, IDT had $25.1 million in net deferred income tax assets. NOLs for U.S. taxes totaled $168 million as of April 30, 2013. Following the spin-off of SPCI, this amount will not change significantly.

Net income attributable to IDT in 3Q13 was $8.7 million, compared to $3.0 million in both the year ago and sequential quarters.

Non-GAAP net income and diluted non-GAAP EPS exclude certain components of GAAP net income (loss) that are not necessarily indicative of ongoing core operations. The excluded components are detailed in the reconciliation provided at the end of this release. Non-GAAP net income was $6.9 million in 3Q13, compared to $9.8 million in the year ago quarter and $6.4 million in the prior quarter. Diluted non-GAAP EPS was $0.31 in 3Q13 compared to $0.44 in the year ago quarter and $0.29 in the prior quarter.

As of April 30, 2013, IDT had $162.9 million of cash, cash equivalents and marketable securities. In addition, IDT had an aggregate of $38.5 million of current and long-term restricted cash and cash equivalents, which included $32.0 million in customer deposits and other restricted balances held by IDT’s Gibraltar based bank.

On May 1, 2013, the mortgage note on IDT’s 520 Broad Street building of $21.1 million was paid in full. As of April 30, 2013, the note payable balance was included in current liabilities in IDT’s consolidated balance sheet.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION

· IDT will host a conference call at 6:00 PM ET this evening, June 6^th, beginning with management’s discussion of financial and operational results, business outlook and strategy followed by Q&A.

· To listen to the conference call and/or participate in the Q&A, dial toll-free 1-877-317-6789 (from U.S.) or 1-412-317-6789 (international) and request the IDT Corporation call.

· An audio replay of the conference call will be available one hour after the call concludes through June 13, 2013 by dialing 1-877-344-7529 (conference code #10029332), and by streaming from the investor relations page of the IDT website: www.idt.net/about/ir.

· Copies of this release – including the reconciliation of the non-GAAP financial measures that are both used herein and referenced during management’s discussion of results – are available in the Investor Relations portion of IDT’s website, at www.idt.net/about/ir.

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 financial resources around the world. IDT’s carrier services business is a global leader in wholesale voice termination. Other IDT technology based holdings include Fabrix Systems (www.fabrixsystems.com), Zedge (www.zedge.net), and Straight Path Communications, Inc., which holds spectrum licenses as well as intellectual property related to communications over the Internet and other computer networks. For more information, visit www.idt.net

In this press release, all statements that are not purely about historical facts, including, but not limited to, payment of dividends and 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, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. These factors include, but are not limited to, the following: potential declines in prices for our products and services; our ability to maintain and grow our telecommunication businesses; availability of termination capacity to particular destinations; our ability to maintain carrier agreements with foreign carriers; our ability to obtain telecommunications products or services required for our services; the financial stability of our major customers; our ability to remain profitable and improve our cash flow; impact of government regulation; effectiveness of our marketing and distribution efforts; and general economic conditions. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Contact:

IDT Corporation Investor Relations

Bill Ulrey

william.ulrey@idt.net

973-438-3838

Financial statements and non-GAAP reconciliation are provided in the attached full earnings release

IDT Corporation to Report Third Quarter Fiscal 2013 Results

IDT Corporation (NYSE: IDT) will report its financial and operational
results for its third quarter of fiscal 2013, the three months ended
April 30, 2013, on Thursday, June 6, 2013 after market close.

IDT’s 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) as
early as 5:00 PM ET on June 6th. As in prior quarters, the earnings
release will not be issued over a wire service.

IDT’s conference call will begin at 6:00 PM ET on June 6th with
management’s discussion of financial and operational results, business
outlook and strategy followed by Q&A with analysts and investors.

To listen to the conference call and/or participate in the Q&A, dial
toll-free 1-877-317-6789 (from U.S.) or 1-412-317-6789 (international)
and request the IDT Corporation call.

An audio replay of the conference call will be available one hour after
the call concludes through June 13, 2013 by dialing 1-877-344-7529
(conference code #10029332), and by streaming from the investor
relations page of the IDT website.

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 financial resources around the
world. IDT’s carrier services business is a global leader in wholesale
voice termination. Other IDT technology based holdings include Fabrix
Systems (www.fabrixsystems.com),
Zedge (www.zedge.net),
and Straight Path Communications, Inc., which holds spectrum licenses as
well as intellectual property related to communications over the
Internet and other computer networks. For more information, visit www.idt.net.

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

IDT and Fiserv Announce Strategic Agreement to Expand Availability of International Calling Services and Walk-in Bill Payments

IDT Corporation (NYSE: IDT), a global provider of prepaid
telecommunications services, and Fiserv, Inc. (NASDAQ: FISV), a leading
global provider of financial services technology solutions, today
announced a strategic agreement to expand the availability of the Boss
Revolution^® international calling service from IDT and the
CheckFreePay^® walk-in bill payment service from Fiserv.

With this agreement, qualified retailers of the flagship IDT Boss
Revolution payment platform will offer CheckFreePay walk-in bill payment
services to their customers, while select CheckFreePay agents will offer
the Boss Revolution PIN-less international calling service.

“We are excited about forging this agreement with Fiserv, which we
believe brings significant value to both of our customers. Boss
Revolution customers will have access to secure and convenient
CheckFreePay walk-in bill payment capabilities, and we expect that the
availability of the Boss Revolution service in high-traffic CheckFreePay
agent locations will drive long-term growth,” said Jonathan E.
Nierenberg, Senior Vice President of Global Services Business
Development for IDT.

Boss Revolution, the flagship IDT payment platform, provides a suite of
prepaid services including Boss Revolution PIN-less, a leading
international calling service that allows users to call their families
and friends overseas conveniently and affordably. Customers can also
purchase and activate international and domestic mobile top-up products
over the Boss Revolution platform.

CheckFreePay is a leader in the walk-in bill payment market, enabling
consumers to pay bills from more than 3,000 companies at more than
25,000 retail agent locations nationwide. CheckFreePay agents include
supermarkets, drugstores and convenience stores, along with hundreds of
independent and chain store retailers.

“Boss Revolution customers will now be able to pay a wide variety of
bills, including utility bills, mobile phone bills and credit card
bills, with the majority of payments delivered in real time or the next
business day,” said Sean Dingwall, Vice President, CheckFreePay.
“Offering Boss Revolution and CheckFreePay as complementary services at
strategic agent locations will enable us to better serve our customers,
many of whom are unbanked or underbanked, or simply prefer to conduct
transactions in person.”

About IDT Corporation

IDT
Corporation (NYSE: IDT) through its IDT Telecom division, provides
telecommunications and payment services. IDT Telecom’s retail products,
including those offered through its flagship Boss Revolution payment
platform, allow people to communicate and share financial resources
around the world. IDT Telecom’s Carrier Services business is a global
leader in wholesale voice termination. For more information, visit www.idt.net.

About Fiserv

Fiserv, Inc. (NASDAQ: FISV) is a leading global technology provider
serving the financial services industry, driving innovation in payments,
processing services, risk and compliance, customer and channel
management, and business insights and optimization. For more
information, visit www.fiserv.com.

Investor Relations:
IDT Corporation
Bill Ulrey, 973-438-3838
invest@idt.net
or
Fiserv
Ann
Cave, 678-375-4039
Director, Public Relations
ann.cave@fiserv.com

IDT Corporation Reports Second Quarter Fiscal 2013 Results

NEWARK, NJ — March 7, 2013: IDT Corporation (NYSE: IDT) reported diluted EPS of $0.13 and non-GAAP diluted EPS of $0.41 on revenue of $411.7 million and Adjusted EBITDA of $9.0 million for its second quarter of fiscal 2013 (2Q13), the three months ended January 31, 2013.

Howard Jonas, IDT’s Chairman and CEO, said, “IDT continued the positive financial trends of recent quarters powered by consistent revenue growth and steadily improving profitability at IDT Telecom. Looking ahead, we will begin rolling out select payment services over the Boss Revolution platform in the next few months. Overall, we are making good progress on this and other strategic growth initiatives which will transform Boss Revolution into the ‘go-to’ international calling, payment and remittance platform for immigrant communities.”

2Q13 HIGHLIGHTS

(All comparisons are for 2Q13 to 2Q12)

· Revenue increased 12.7% to $411.7 million, the 12^th consecutive quarter of year over year revenue growth

· Minutes of use increased 19.1% to 8.8 billion

· Gross profit increased 13.7% to $67.2 million

· Gross margin increased 10 basis points to 16.3%

· SG&A expense increased 9.4% to $56.4 million

· Adjusted EBITDA increased 39.8% to $9.0 million

· Income from operations increased 30.3% to $5.3 million

· Net income attributable to IDT increased to $3.0 million compared to $2.7 million

· Non-GAAP net income increased to $9.0 million compared to $6.2 million

· Diluted non-GAAP EPS increased to $0.41 compared to $0.29

· Net cash provided by operating activities decreased to $12.5 million compared to $19.9 million

NOTES:

Adjusted EBITDA, non-GAAP net income and non-GAAP EPS for all periods presented are non-GAAP measures intended to provide useful information that may be more indicative of IDT’s or the relevant segment’s core operating results than the nearest GAAP measures. 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.

IDT’s operating results for all prior periods presented have been adjusted to reflect the spin-off of Genie Energy which was effected in October 2011. Genie Energy is accounted for as discontinued operations for all periods presented.

OPERATING RESULTS BY SEGMENT

TPS

Telecom Platform Services (TPS), which accounted for 97.8% of IDT’s revenue in 2Q13, markets and distributes multiple communications and payment services across four business verticals: Retail Communications, Wholesale Termination Services, Payment Services and Hosted Platform Solutions.

TPS’ revenue in 2Q13 increased 12.6% year over year and 2.7% sequentially, to $402.8 million.

Retail Communications revenue increased 21.1% year over year and 4.8% sequentially to $161.1 million. Year over year, sales of pin-less calling services over the Boss Revolution platform continued to increase very strongly, as did sales from products distributed through large nationwide retail partners. These gains more than offset declines in sales of traditional disposable calling cards, sales of IDT’s PennyTalk calling service, and retail sales in Europe and South America. Retail Communications revenue constituted 40.0% of total TPS revenue in 2Q13.
Wholesale Termination Services revenue increased 4.8% year over year and 0.3% sequentially to $182.2 million. Continued growth in minutes of use more than offset further declines in revenue per minute. Wholesale Termination Services revenue constituted 45.2% of total TPS revenue in 2Q13.
Payment Services revenue increased 27.9% year over year and 6.5% sequentially to $46.6 million primarily reflecting continued growth of international mobile top-up (IMTU) sales. Payment Services revenue constituted 11.6% of total TPS revenue in 2Q13.
Hosted Platform Solutions revenue declined 9.5% year over year and 0.9% sequentially to $12.9 million. Cable telephony, which is in harvest mode, led the revenue declin
e. Hosted Platform Solutions revenue constituted 3.2% of total TPS revenue in 2Q13.

TPS’ gross profit in 2Q13 was $60.6 million, an increase of 12.3% year over year and 2.7% sequentially. Gross profit growth was led by sales of Boss Revolution pin-less calling services and IMTU, which more than offset the continued decline in gross profit generated by sales of traditional retail calling cards and other retail products.

TPS’ gross margin in 2Q13 was 15.1%, unchanged compared to both the year ago and prior quarters. Within Retail Communications, gross margin continued to improve on Boss Revolution sales, but was offset primarily by weakening margin from sales of traditional prepaid calling cards.

TPS’ SG&A expense was $47.3 million, a 3.8% increase compared to 2Q12 and 0.5% increase compared to 1Q13. IDT expects that TPS’ SG&A expense will increase at a more rapid pace during the remainder of fiscal 2013, as the spending for previously announced product development and enhancements ramps up. As a percentage of TPS revenue, TPS’ SG&A expense was 11.8%, a decline of 100 basis points compared to the year ago quarter and a decline of 20 basis points sequentially.

TPS’ Adjusted EBITDA in 2Q13 was $13.3 million, a 58.6% increase year over year and an 11.4% increase sequentially, primarily as a result of increased revenue and gross profit generated by Boss Revolution, IMTU and Wholesale Termination Services.

TPS’ depreciation and amortization expense decreased year over year by 10.6% to $3.2 million. Over the past several years, IDT has deployed technologies that required less CAPEX, and more of its equipment has been fully depreciated.

TPS’ income from operations was $10.1 million, a 54.3% increase compared to income from operations of $6.5 million in 2Q12, which included a gain of $1.8 million from a settlement with a former cable telephony customer. In 1Q13, TPS’ income from operations was $9.0 million including a loss of $0.4 million stemming from a legal settlement.

CPS

Consumer Phone Services (CPS) sells local and long distance services. 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’ 2Q13 revenue was $3.7 million, compared to $5.0 million in the year ago quarter and $4.0 million in the prior quarter. Income from operations was $0.4 million, $1.0 million and $0.6 million for the same periods, respectively. The year over year declines in revenue and income from operations were in line with management’s expectations.

ALL OTHER

All Other includes: Fabrix, a software development company specializing in highly efficient cloud-based video processing, storage and delivery; Zedge, a service providing mobile games and personalization content such as ringtones and wallpapers through an Android and iOS app; IDT Spectrum, which holds, leases and sells fixed wireless spectrum; ICTI, which licenses and enforces intellectual property rights primarily related to Voice-over-Internet Protocol technology; and IDT’s real estate holdings.

All Other’s 2Q13 revenue was $5.2 million, an 80.5% increase compared to the year ago quarter and a 14.9% increase sequentially. The increases were attributable primarily to Fabrix and Zedge. All Other’s loss from operations was $0.8 million, compared to losses from operations of $0.3 million in the year ago quarter and $1.6 million in 1Q13.

FABRIX: Fabrix’s revenue was $2.8 million in 2Q13 compared to $1.0 million in 2Q12 and $2.4 million in 1Q13. Fabrix’s revenue is generally recognized from the date on which delivered orders are accepted by the customer over the term of the related software support agreements.

ZEDGE: Zedge has now surpassed 55 million downloads on Android, and is among the top twenty most popular free apps available in Google Play. In December, Zedge launched its iOS app, which has since been installed more than 1.5 million times. Zedge expects to begin including ringtones in its iOS app during 3Q13. On the Android platform, Zedge is focused on enhancing its mobile game discovery features. Zedge generated revenue of $1.6 million in 2Q13 compared to $1.0 million in 2Q12 and $1.2 million in 1Q13.

ICTI: In the first half of fiscal 2013, ICTI reached confidential settlement agreements with each of the defendants against whom it had filed complaints in January 2012, claiming infringement of a number of its key patents. The settlements came after the presiding judge in the U.S. District Court issued an Opinion and Order favorable to ICTI. ICTI reported revenue of $0.1 million in 2Q13.

CONSOLIDATED RESULTS AND BALANCE SHEET

Corporate G&A expense was $4.4 million in 2Q13, a 36.2% increase compared to the year ago quarter and a 60.1% increase sequentially, reflecting, in part, the impact of a $0.9 million donation to the IDT Charitable Foundation and an increase in stock-based compensation.

Provision for income taxes in 2Q13 was $3.1 million compared to a benefit from income taxes of $0.7 million in the year ago quarter and provision for income taxes of $2.1 million in 1Q13. In 4Q12, IDT reversed a portion of the valuation allowance that had been applied against its U.S. deferred income tax assets due to the current and expected future profitability of its operations in the United States. Because of this reversal, IDT records a provision for federal income tax in periods when it has pretax income. Actual U.S. federal cash taxes paid are expected to be minimal for the foreseeable future, as IDT continues to utilize its NOLs. As of January 31, 2013, IDT had $31.2 million in net deferred income tax assets. NOLs totaled $173.0 million as of January 31, 2013.

Net income attributable to IDT in 2Q13 was $3.0 million, compared to $2.7 million in 2Q12 and $3.6 million in 1Q13.

Non-GAAP net income and diluted non-GAAP EPS exclude certain components of GAAP net income (loss) that are not necessarily indicative of ongoing core operations. The excluded components are detailed in the reconciliation provided at the end of this release. Non-GAAP net income was $9.0 million in 2Q13, compared to $6.2 million in the year ago quarter and $9.9 million in the prior quarter. Diluted non-GAAP EPS was $0.41 in 2Q13 compared to $0.29 in the year ago quarter and $0.45 in the prior quarter.

As of January 31, 2013, IDT had $150.6 million of cash and cash equivalents. In addition, IDT had an aggregate of $34.8 million of current and long-term restricted cash and cash equivalents, which included $28.4 million in customer deposits and
other restricted balances held for IDT’s Gibraltar based bank.

DISTRIBUTIONS

IDT’s Board of Directors declared a special cash distribution of $0.60 per share, which was paid on November 13, 2012, and suspended payment of the Company’s regular $0.15 per share quarterly dividend for fiscal 2013. Future dividends will be at a level commensurate with the Company’s financial results, strategic goals and available resources.

IDT EARNINGS ANNOUNCEMENT & SUPPLEMENTAL INFORMATION

· IDT will host a conference call at 6:00 PM ET this evening, March 7^th, beginning with management’s discussion of financial and operational results, business outlook and strategy followed by Q&A.

· To listen to the conference call and/or participate in the Q&A, dial toll-free 1-877-317-6789 (from U.S.) or 1-412-317-6789 (international) and request the IDT Corporation call.

· An audio replay of the conference call will be available starting one hour after the call concludes through March 14, 2013 by dialing 1-877-344-7529 (conference code #10025458), and afterwards by streaming from the IDT website investor relations site: www.idt.net/about/ir.

· Copies of this release – including the reconciliation of the non-GAAP financial measures that are both used herein and referenced during management’s discussion of results – are available in the Investor Relations portion of IDT’s website, at www.idt.net/about/ir.

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 financial resources around the world while its carrier services business is a global leader in wholesale voice termination. Other IDT technology based holdings include Fabrix Systems (www.fabrixsystems.com), Zedge (www.zedge.net), IDT Spectrum (www.idtspectrum.com), and Innovative Communications Technologies, Inc. For more information, visit www.idt.net.

In this press release, all statements that are not purely about historical facts, including, but not limited to, payment of dividends and 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, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. These factors include, but are not limited to, the following: potential declines in prices for our products and services; our ability to maintain and grow our telecommunication businesses; availability of termination capacity to particular destinations; our ability to maintain carrier agreements with foreign carriers; our ability to obtain telecommunications products or services required for our services; the financial stability of our major customers; our ability to remain profitable and improve our cash flow; impact of government regulation; effectiveness of our marketing and distribution efforts; and general economic conditions. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Complete financial statements and non-GAAP reconciliations are provided in the attached pdf of the full earnings release

Category: Press Releases

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