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The Board of Directors of IDT Corporation (NYSE: IDT) today decided to
pay a special dividend of $0.60 per share to holders of its Class A and
Class B common stock. IDT has also suspended payment of its regular
$0.15 quarterly dividends for its 2013 fiscal year, the twelve months
ending July 31, 2013.
The special dividend will be paid on or about November 13, 2012 to
stockholders of record of as of the close of business on November 5,
2012. The ex-dividend date will be November 1, 2012. For tax purposes,
the $0.60 per share payment will be treated as a return of capital and
not as a dividend. Payments classified as returns of capital generally
reduce the basis in the shares on which the payment is made, unless the
basis is lower than the amount of the payment.
“With the uncertainty surrounding the federal tax treatment of
dividends, including the scheduled December 31st expiration
of the 15% federal tax rate on dividend income, our stockholders are
best served by paying this dividend now. We have the flexibility to pay
the special dividend while maintaining our strong balance sheet and
continuing to invest in the growth of our telecom and other businesses.
We do not expect to pay a regular dividend for the four quarters of
fiscal year 2013, and we will monitor our operational results, cash
needs and anticipated performance to determine the best way to deliver
value to our stockholders going forward,” said Howard Jonas, Chairman
and CEO of IDT Corporation.
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 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.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 financial 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. For more information, visit www.idt.net.
Investor Relations
IDT Corporation
Bill Ulrey, 973-438-3838
invest@idt.net
