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IDT to Host Conference Call to Discuss Developments
Corporation (NYSE: IDT; IDT.C) announced today several changes in
management personnel as well as a new executive compensation plan for
IDT Telecom. The plan is intended to identify and create incentives for
Telecom management to turn around and create enhanced value from the
various operations of that division.
The new Telecom management team will be led by Motti Lichtenstein as CEO
of IDT Telecom. Motti served as CEO of IDT Telecom during its period of
most significant growth. He moves from serving as COO of IDT Corporation
to focus on the turnaround of IDT Telecom. Joining Mr. Lichtenstein on
the IDT Telecom executive management team will be Mikhail Leibov, who
will serve as President, Marcelo Fischer as CFO, Ely Tendler as General
Counsel, and Yona Katz as COO. Mr. Leibov headed up the growth of
Corbina, IDT‘s Russian telecom operation, from
its inception through its acquisition by IDT and ultimate sale in fiscal
2007. Mr. Fischer has previously served IDT Corporation as Chief
Accounting Officer and CFO. Mr. Tendler has been General Counsel of IDT
Telecom since 2004, and will transition out of his role as Chief Legal
Officer of IDT Corporation to again focus exclusively on the Telecom
division. Mr. Katz has been with IDT Telecom for eight years and took
over as CEO of IDT Telecom after Mr. Lichtenstein‘s
move to the IDT Corporation executive team.
At IDT Corporation, Steve Brown is taking over the role of COO. Mr.
Brown previously served as CFO of IDT Corporation and Co-Chairman and
President of IDT Entertainment. Mr. Brown brings with him significant
management experience and will play a key role in managing and
supporting IDT‘s operations with a focus on
its developing businesses.
IDT‘s Board of Directors has also approved an
incentive compensation program for IDT Telecom‘s
executive team and other key employees. The program provides for sharing
with Telecom management positive cash flows generated by the businesses
they operate or develop, as well as proceeds from monetization of assets
and growth in the value created in the Telecom division above agreed
upon base values. The incentive plan is accompanied by significant cuts
in management compensation and other reductions in SG&A to help bring
Telecom‘s operations back to profitability.
“We are confident that we have identified the
correct management team to turn Telecom around and create value for our
shareholders,“ said Jim Courter, CEO of IDT. “We
have talked extensively about the competitive and other troubles facing
IDT Telecom, and the need for a comprehensive program to address those
difficulties. The new team includes members who have built and monetized
– for significant gain – successful operations in the telecommunications
industry, including IDT Telecom during its heyday. With the new
incentives, we are confident that this team can lead the turnaround
effort and produce value for our shareholders. Subject to oversight by
the IDT Corporation Board of Directors and management, we intend to give
the new team every chance to succeed and a fair amount of autonomy in
its management of Telecom and implementation of their strategic plans.“
“We have made changes at the management level
of IDT Corporation and at our largest division in order to utilize the
talent we have and focus it on growth, profitability and creation of
shareholder value,“ said Howard Jonas,
Chairman of IDT Corporation. “The new IDT
Telecom team, led by Motti and Mikhail, knows how to identify the root
cause of problems, fix them and focus on growth and producing
predictable, profitable results. At IDT Corporation, we are lucky that
Steve has agreed to take on the role of COO. Steve‘s
broad experience as CFO and as Co-Chairman and President of IDT
Entertainment brings discipline as well as the first-hand knowledge of
how to build and monetize businesses. We look forward to using his
talents in our varied operations.“
“Mikhail and I are pleased with the
confidence being placed in our team, and are excited about the
challenges ahead,“ said Motti Lichtenstein. “We
are developing strategic plans to protect and regain our positions as
market leaders in the telecommunications arena, increase the value of
our franchise and further diversify our operations. Synthesizing Mikhail‘s
technological and managerial expertise with this team‘s
historical operational strengths will accelerate our return to strong
profitability and create value for the entire IDT family.“
“I am pleased to have taken on a new role at
this crucial time for IDT,“ said Steve Brown. “I
will utilize my experience in running operations to help nurture our
smaller businesses through growth, and our larger businesses through
increased focus and discipline.“
IDT CONFERENCE CALL INFORMATION
IDT will host a conference call on Monday October 29, 2007, at 4:30 p.m.
Eastern time to discuss these recent developments. Members of management
will be available to address questions by participants in the call.
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From the U.S., please dial (800) 230-1085.
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International callers, please dial (612) 332-0226.
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Replay available for one week at
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— (800) 475-6701, Conference ID: 892539 for domestic callers, |
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— or (320) 365-3844, Conference ID: 892539 for international callers. |
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Webcast of the conference call is available at the direct link www.vcall.com/IC/CEPage.asp?ID=122519.
An archived copy of the call will be available on the IDT Website, in
the Investor Relations section‘s
Presentations for at least six months after the call.
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Additional financial and statistical information is available on the
Investor Relations portion of IDT‘s
website, at https://www.idt.net/about/ir/overview.asp.
ABOUT IDT CORPORATION
IDT Corporation is an innovative and opportunity seeking multinational
holding company with operations that span various industries. Through
its Telecom subsidiary, IDT provides telecommunications services
worldwide to the retail and wholesale markets. IDT‘s
Capital division incubates newer businesses, and the company‘s
Spectrum subsidiary holds its spectrum license assets. IDT Telecom
provides retail and wholesale telecommunications services and products,
including pre-paid and rechargeable calling cards, consumer local, long
distance, and wireless phone services, and wholesale carrier services.
Under the Net2Phone brand name, the company also provides a range of
voice over Internet protocol (VoIP) communications services. IDT Capital‘s
operations include an Energy Services Company (ESCO) in New York State,
receivables portfolio management and collection, ethnic food
distribution, brochure distribution, Internet Mobile Group, Net2Phone
Ventures and other initiatives. IDT Corporation’s Class B Common Stock
and Common Stock trade on the New York Stock Exchange under the ticker
symbols IDT and IDT.C, respectively.
In this press release, all statements that are not purely about
historical facts, including, but not limited to, those with 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 IDT‘s
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. These risks and
uncertainties include, but are certainly not limited tom, the specific
risks and uncertainties discussed in our reports filed with the SEC. All
forward-looking statements and risk factors included in this document
are made as of the date hereof, based on information available to IDT as
of the date thereof, and IDT assumes no obligation to update any
forward-looking statements or risk factors.
