Back to press releases
IDT Corporation (NYSE: IDT; IDT.C) said today that aggressive cost
cutting and strong results from its energy supply business significantly
reduced operating losses during the three months ended October 31, 2008.
IDT reported a pretax operating loss of $12.5 million for Q1 2009,
compared to a $35.7 million operating loss in the comparable period a
year ago (excluding a $40 million one time arbitration award in favor of
IDT. Including that award, the gain from operations for Q1 2008 was $4.3
million.)
IDT’s net loss for the quarter was $37.3 million, or $0.51 per share, of
which approximately $21 million reflected realized and unrealized losses
on investments and marketable securities as a result of the recent
global financial and market decline. Net loss in the comparable period a
year ago was $33.2 million (again excluding the $40 million arbitration
award.)
“We have made substantial progress on the restructuring program since it
began earlier this year, and will continue to execute on our turnaround
program to restore the Company to profitability and rebuild our balance
sheet,” said IDT CEO Jim Courter.
OVERALL RESULTS
IDT revenues fell 5.7% year over year (Q1 2009 compared to Q1 2008) from
$468.0 million to $441.4 million. Comparable reductions in direct costs
allowed the Company to maintain its gross margin percentage, which
increased by 1.4% year over year to 23.1%. The Company reduced total
SG&A to $94.9 million, a $20.1 million, or 17.4%, reduction over the
comparable period a year ago. Corporate total SG&A during the quarter
was $11.1 million, a 38.6% reduction compared to the first quarter of
fiscal 2008.
As mentioned above, IDT’s loss from operations was $12.5 million for the
first quarter, compared to a $4.3 million gain during the first quarter
of 2008 (including the $40 million arbitration award), and a loss of
$79.3 million in the preceding quarter. IDT’s net loss for the first
quarter was $37.3 million, or $0.51 per share, compared to net income of
$6.8 million (including the $40 million arbitration award), or $0.09 per
share ($0.08 fully diluted) for the first quarter of 2008, and a net
loss of $86.4 million, or $1.15 per share, in the preceding quarter.
RESULTS BY LINE OF BUSINESS
IDT TELECOM
IDT Telecom carried 5.60 billion minutes of traffic in the first quarter
of fiscal 2009, a decrease of 4.8% year over year, and average revenue
per minute likewise declined by 5.6%. Revenues declined to $353.5
million, down 12.3% year over year and down 6.7% compared with the prior
quarter.
Gross margin percentage division-wide declined to 20.5% in the current
quarter, compared to 21.6% in Q1 of last year, mostly due to changes in
product mix to lower margin wholesale minutes. Gross margin percentage
in Q4 2008 was 23.6%, but excluding a $10.9 million one-time regulatory
accrual reversal recorded in Q4 2008, gross margin percentage was flat
on a sequential basis.
SG&A declined to $63.8 million, down 16.6% year over year, and 9.8%
sequentially, reflecting the impact of lower headcount and compensation
costs, equipment and software maintenance expenses, and facilities
costs. In addition, IDT’s Prepaid Products segment also benefited from
reductions in sales and marketing expenses, and in legal, consulting and
professional fees.
IDT Telecom’s loss from operations during the quarter was $4.1 million.
During the same period a year ago, IDT Telecom reported income from
operations of $31.4 million, which included income from a one time $40
million arbitration award. In the fourth quarter of 2008, IDT Telecom’s
loss from operations was $34.8 million, which included a $35.0 million
restructuring and impairment charge, and the reversal of a regulatory
accrual, as mentioned above.
Wholesale Telecommunications Services
Wholesale minutes of use rose to 3.63 billion minutes, a 1.8% increase
over the same period a year ago, but a 5.1% decline on a sequential
basis. Average revenue per minute declined 6.4% compared to a year ago,
and declined 3.7% sequentially. As a result, wholesale carrier revenues
during the quarter fell to $160.5 million, a 4.7% decline year over
year, and an 8.6% decline sequentially.
Gross margin percentage was 14.7% during the quarter, compared to 15.6%
in the same period a year ago, and 14.8% in Q4 2008. The negative impact
to gross margin from declining revenue and average revenue per minute
was largely mitigated by declines in average termination cost per minute
and the planned reductions in our network connectivity costs as we
continue to reduce excess capacity.
In addition, we continue to migrate portions of our core network from
dedicated capacity time-division multiplexing (TDM) circuits to
burstable Internet protocol circuits, which utilize connectivity
capacity more efficiently and results in lower overall cost. Our U.S.
core network migration towards IP is expected to be mostly completed by
the end of fiscal 2009, and our European core network migration is
expected to be completed by the end of calendar 2009.
Prepaid Products
IDT’s prepaid products business carried 1.97 billion minutes, a 14.8%
decline year over year and a 3.8% drop sequentially, while average
revenue per minute, both sequentially and year over year, remained the
same. As a result of the volume contraction, prepaid products revenues
declined to $175.2 million in the quarter, representing a 16.2%
reduction from a year ago, and a 4.9% sequential decline.
Gross margin percentage was 22.5% during the quarter, compared to 23.0%
in the same period a year ago, and 23.3% sequentially (excluding the
one-time regulatory accrual impact in Q4, as noted above).
Consumer Phone Services
Revenues declined to $17.8 million in the current quarter, a 29.6% drop
compared to the same period a year ago, and a 6.0% sequential decline,
as a result of continued customer attrition. Gross margin percentage
grew to 52.8% in the current quarter, versus 50.5% in the same period a
year ago and 50.0% in Q4 2008, as a result of price increases that we
implemented beginning in the fourth quarter of fiscal 2008.
Our consumer phone services business is in “harvest mode,” wherein we
seek to retain existing customers but do not actively market to new
customers, in order to maximize profits by optimally managing both the
life-cycle of our customer base as well as the costs associated with
operating this business.
The customer base for our bundled, unlimited local and long distance
business was approximately 40,700 as of October 31, 2008 compared to
67,500 as of October 31, 2007. The customer base for our long
distance-only services was approximately 125,300 as of October 31, 2008
compared to 195,500 as of October 31, 2007.
IDT ENERGY
An expanded customer base and favorable market conditions helped IDT
Energy increase revenues and margins while decreasing rates to customers
in Q1 2009 compared to Q4 2008. During the quarter, IDT Energy attracted
new customers at an accelerated pace. Gross meter acquisitions grew by
over 25,000 per month during the quarter versus 14,000 per month during
the same period a year ago. The number of meters as of October 31, 2008
was approximately 392,000, up 26% year over year. Consumption per meter
for electricity was driven higher in Q1 2009 compared to Q4 2008 by
favorable changes in customer demographics as acquisition efforts
targeted small commercial customers with higher consumption histories.
Churn remained level during the quarter, but was slightly higher than
the sequential and year over year quarters.
Revenues for the quarter grew to $67.2 million, up 59.6% (56.5% for
electric, 73.9% for gas) year over year but down 11% from the sequential
quarter as electric revenues fell with the end of the summer cooling
season. The gross margin percentage rose to 30.1% from 12.9% a year ago
and up from 12.2% during the previous quarter. Because IDT Energy relies
heavily on the spot markets for its gas and electric supplies, it was
well positioned to improve its margins as its costs declined during Q1
2009 and competitors did not drop the prices they charged customers as
significantly. SG&A increased to $8.7 million from $3.7 million a year
earlier, a 134.4% increase. SG&A costs were impacted by the expanded
sales program including higher per customer acquisition costs, and
increased purchase of receivable fees charged by the incumbent
utilities. IDT Energy reported $11.1 million in income from operations
during the quarter, compared to $1.7 million in the year ago quarter.
IDT CARMEL
IDT Carmel, IDT’s receivables portfolio management and collection
business, reported revenues of $8.9 million, an 8.4% reduction in
quarterly earnings year over year and a 20.3% decline sequentially as
its debt portfolios continued to age. IDT Carmel acquired no additional
debt during the quarter, and revenues from the current portfolio were
in-line with internal expectations.
Direct cost of revenues during the first quarter increased to $7.0
million, up 9.8% from the comparable period a year ago, as IDT Carmel
increasingly utilized the court system to improve its collections.
Collections utilizing the court system typically entail higher up-front
costs for court filing fees while enhancing long term returns. IDT
Carmel reduced direct costs of revenues 15% sequentially by
consolidating its call centers and trimming its collections workforce.
Gross margin percentage in the current quarter was 21.1%, down from
34.2% in the comparable period a year ago, and down from 26.0% in the
fourth quarter of fiscal 2008. The decreased margins resulted from the
increased direct costs and lower revenue as explained above.
At $1.8 million, total SG&A in the first quarter of fiscal 2009 was
45.1% higher year over year and 23.6% higher sequentially. The increase
resulted principally from increased salaries resulting from IDT Carmel’s
upgraded management team. IDT Carmel’s loss from operations during the
current quarter was $0.7 million, compared to $2.0 million in income
from operations during the first quarter of fiscal 2008.
Going forward, collections utilizing the court system are expected to
enhance future recovery rates and margins, while constraining costs as
more court filing and other legal costs are funded by the outsourcers on
a contingency basis. During the second quarter of fiscal 2009, IDT
Carmel bought out its partner and assumed managerial control over its
joint venture with First Financial Portfolio Management. IDT Carmel
expects improved returns from this portfolio as a result.
IDT CAPITAL
IDT Capital unit’s revenues declined by 11.7% year over year and 18.4%
sequentially to $11.8 million as management continued to shut down or
dispose of unprofitable business initiatives. Nevertheless, revenue of
the Local Media Group – comprised of CTM Media Group, WMET, and IDW
Publishing – now the fourth largest comic book publisher in the United
States – rose to $9.1 million, up 16.5% from a year ago. The end of the
prime tourist season impacted CTM and reduced sequential revenue for the
Local Media Group by 12.5%.
Significant reductions in payroll and commissions at CTM reduced total
SG&A for the Local Media Group by 6.5% year over year and 21.8%
sequentially to $4.5 million.
IDT Capital reported an operating loss of $6.1 million for the current
quarter, a 47.4% improvement over the same period a year ago, and a
74.6% improvement compared to the previous quarter.
Zedge (http://www.zedge.net),
a destination for free mobile content, continues to see strong user
growth. The site is visited by just over 8 million unique visitors per
month, mostly males in the 18 to 35 year old age bracket. The combined
web and mobile traffic now averages over 14 million daily page views and
2 million daily downloads. Additionally, management launched Zedge Pro,
allowing professional users to mobilize and market their content.
Zedge’s revenues are derived from advertising. Zedge’s sales force has
begun to monetize both the web and mobile sites. Zedge, which has a
truly global following, continues to increase in popularity in the
United States, which enhances its revenue potential. The group expects
to be break-even by the end of fiscal 2009.
American Shale Oil, LLC., (AMSO LLC), IDT’s U.S. Oil Shale research and
development subsidiary, began drilling to characterize the resources
within its federal leasehold in western Colorado on November 11, 2008.
Site work is proceeding according to AMSO’s revised plan of operations
approved by the Bureau of Land Management on October 17, 2008. During
the first quarter of fiscal 2009, IDT Alternative Energy’s research and
development expenses and other costs were $0.9 million, compared to $0.8
million in the preceding quarter.
OTHER RECENT DEVELOPMENTS
During the first quarter of fiscal 2009, IDT purchased an aggregate of
4.6 million shares of its Class B Common Stock and Common Stock for $2.9
million under an existing stock buyback program. As of December 5, 2008,
IDT had acquired an additional 2.3 million shares for $1.9 million, and
10.2 million shares remained authorized for repurchase under the current
stock buyback plan.
During the first quarter of fiscal 2009, IDT announced that its
Chairman, Howard Jonas, agreed to receive the next five years’ base
salary in stock in lieu of cash. Mr. Jonas was granted 3.5 million
restricted shares of the Company’s Class B common stock and 2.7 million
restricted shares of the Company’s common stock in lieu of a cash base
salary beginning January 1, 2009 through December 31, 2013. In addition,
IDT’s CEO and Vice Chairman, Jim Courter, was granted 1.1 million
restricted shares of Class B common stock in lieu of a cash base salary
from January 1, 2009 until October 21, 2009
As part of its broader initiative to focus operations on core
businesses, on December 1, 2008, IDT announced an agreement to sell its
European prepaid payment services business to NEOVIA Financial Plc for
$15.05 million. The assets sold include approximately $10 million in
securities held pursuant to regulatory requirements. The proposed
transaction is subject to regulatory approval and the consent of
MasterCard®.
On December 8, 2008, IDT entered into an installment agreement with the
IRS whereby the Company will pay $55 million of the remaining $67
million owed to the IRS by mid-February, 2009, and the remaining balance
by mid-June 2009. Interest and penalties will continue to accrue on any
unpaid amounts. The Company anticipates having sufficient cash available
to meet this obligation.
On September 30, 2008 and October 8, 2008, IDT received notices from the
New York Stock Exchange (NYSE) that it was no longer in compliance with
the market capitalization threshold and the $1.00 minimum price
requirement, respectively, required for continued listing. IDT has
submitted to the NYSE a plan to regain compliance. The plan is currently
in the review process and IDT expects to receive the NYSE’s response by
early January of 2009. If IDT’s final plan is rejected, the NYSE will
commence delisting procedures. If IDT’s final plan is accepted by the
NYSE, the Company will have until April 8, 2009 and March of 2010 to
regain compliance with the minimum stock price and market capitalization
standards respectively. The NYSE will monitor compliance with the plan
and may commence delisting procedures prior to either deadline if IDT
fails to meet the milestones set forth in its plan.
IDT CONFERENCE CALL INFORMATION
Conference call today, December 8, 2008, at 5:00 PM Eastern Time.
From the U.S., please dial 877-407-8033, Passcode IDT.
International callers, please dial 201-689-8033, Passcode IDT.
Replay available for one week at:
1-877-660-6853, Account #: 286; Conference ID #: 305173 for domestic
callers, or
1-201-612-7415, Account #: 286; Conference ID #: 305173 for
international callers.
Webcast of the conference call will be available at the direct link on www.idt.net.
An archived copy of the call will be available at the IDT Website, in
the Investor Relations section under the Presentations heading for at
least six months after the call.
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 (www.idt.net)
is a consumer-focused multinational holding company.
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.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 retail telecommunications services,
particularly our prepaid calling card business; availability of
termination capacity; financial stability of our customers; our ability
to maintain carrier agreements with foreign carriers; effectiveness of
our marketing and distribution efforts; increased competition,
particularly from regional bell operating companies; our ability to
manage our growth; impact of government regulation; our ability to
obtain telecommunications products or services required for our products
and services; and general economic conditions, particularly in the
telecommunications markets.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.
|
IDT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
| October 31, 2008 |
July 31, 2008 |
|||||||
| (Unaudited) | ||||||||
| (in thousands) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 122,401 | $ | 164,886 | ||||
| Restricted cash and cash equivalents | 22,110 | 4,133 | ||||||
| Marketable securities | 73,414 | 111,462 | ||||||
|
Trade accounts receivable, net of allowance for doubtful accounts of $20,726 at October 31, 2008 and $21,589 at July 31, 2008 |
145,722 | 178,642 | ||||||
| Prepaid expenses | 22,801 | 23,881 | ||||||
| Investments—short-term | 16,974 | 22,563 | ||||||
| Other current assets | 68,291 | 70,416 | ||||||
| Total current assets | 471,713 | 575,983 | ||||||
| Property, plant and equipment, net | 218,261 | 229,931 | ||||||
| Goodwill | 73,982 | 74,509 | ||||||
| Licenses and other intangibles, net | 8,353 | 9,437 | ||||||
| Investments—long-term | 27,514 | 40,295 | ||||||
| Deferred income tax assets, net | 2,106 | 2,300 | ||||||
| Other assets | 66,066 | 70,520 | ||||||
| Total assets | $ | 867,995 | $ | 1,002,975 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | $ | 54,088 | $ | 82,976 | ||||
| Accrued expenses | 179,989 | 203,487 | ||||||
| Deferred revenue | 76,567 | 88,618 | ||||||
| Income taxes payable | 106,340 | 123,000 | ||||||
| Capital lease obligations—current portion | 8,327 | 9,316 | ||||||
| Notes payable—current portion | 2,206 | 2,115 | ||||||
| Other current liabilities | 12,789 | 15,021 | ||||||
| Total current liabilities | 440,306 | 524,533 | ||||||
| Capital lease obligations—long-term portion | 9,940 | 11,148 | ||||||
| Notes payable—long-term portion | 99,629 | 100,150 | ||||||
| Other liabilities | 17,863 | 18,957 | ||||||
| Total liabilities | 567,738 | 654,788 | ||||||
| Minority interests | 5,456 | 5,850 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
|
Preferred stock, $.01 par value; authorized shares—10,000; no shares issued |
— | — | ||||||
|
Common stock, $.01 par value; authorized shares—100,000; 27,725 and 25,075 shares issued and 16,184 and 14,542 shares outstanding at October 31, 2008 and July 31, 2008, respectively |
277 | 251 | ||||||
|
Class A common stock, $.01 par value; authorized shares—35,000; 9,817 shares issued and outstanding at October 31, 2008 and July 31, 2008 |
98 | 98 | ||||||
|
Class B common stock, $.01 par value; authorized shares—200,000; 67,481 and 63,904 shares issued and 51,225 and 51,249 shares outstanding at October 31, 2008 and July 31, 2008, respectively |
675 | 639 | ||||||
| Additional paid-in capital | 717,873 | 716,598 | ||||||
|
Treasury stock, at cost, consisting of 11,541 and 10,533 shares of common stock and 16,256 and 12,655 shares of Class B common stock at October 31, 2008 and July 31, 2008, respectively |
(288,430 | ) | (285,536 | ) | ||||
| Accumulated other comprehensive (loss) income | (1,967 | ) | 6,754 | |||||
| Accumulated deficit | (133,725 | ) | (96,467 | ) | ||||
| Total stockholders’ equity | 294,801 | 342,337 | ||||||
| Total liabilities and stockholders’ equity | $ | 867,995 | $ | 1,002,975 | ||||
|
IDT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||
| Three Months Ended October 31, |
||||||||
| 2008 | 2007 | |||||||
| (in thousands, except per share data) | ||||||||
| Revenues | $ | 441,354 | $ | 468,054 | ||||
| Costs and expenses: | ||||||||
| Direct cost of revenues (exclusive of depreciation and amortization) | 339,340 | 366,464 | ||||||
| Selling, general and administrative (i) | 94,944 | 115,008 | ||||||
| Depreciation and amortization | 14,029 | 17,819 | ||||||
| Bad debt | 1,900 | 2,307 | ||||||
| Research and development | 1,644 | 371 | ||||||
| Restructuring and severance charges | 2,017 | 1,743 | ||||||
| Total costs and expenses | 453,874 | 503,712 | ||||||
| Arbitration award income | — | 40,000 | ||||||
| (Loss) income from operations | (12,520 | ) | 4,342 | |||||
| Interest (expense) income, net | (932 | ) | 2,378 | |||||
| Other (expense) income, net | (21,202 | ) | 6,333 | |||||
|
(Loss) income from continuing operations before minority interests and income taxes |
(34,654 | ) | 13,053 | |||||
| Minority interests | 364 | (626 | ) | |||||
| Provision for income taxes | (2,968 | ) | (3,835 | ) | ||||
| (Loss) income from continuing operations | (37,258 | ) | 8,592 | |||||
| Discontinued operations, net of tax: | ||||||||
| Loss on sale of discontinued operations | — | (1,812 | ) | |||||
| Net (loss) income | $ | (37,258 | ) | $ | 6,780 | |||
| Earnings per share: | ||||||||
| Basic: | ||||||||
| (Loss) income from continuing operations | $ | (0.51 | ) | $ | 0.11 | |||
| Loss on sale of discontinued operations | — | (0.02 | ) | |||||
| Net (loss) income | $ | (0.51 | ) | $ | 0.09 | |||
|
Weighted-average number of shares used in calculation of basic earnings per share |
72,960 | 79,624 | ||||||
| Diluted: | ||||||||
| (Loss) income from continuing operations | $ | (0.51 | ) | $ | 0.10 | |||
| Loss on sale of discontinued operations | — | (0.02 | ) | |||||
| Net (loss) income | $ | (0.51 | ) | $ | 0.08 | |||
|
Weighted-average number of shares used in calculation of diluted earnings per share |
72,960 | 80,228 | ||||||
|
(i) Stock-based compensation included in selling, general and
|
$ | 1,337 | $ | 1,430 | ||||
|
IDT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
| Three Months Ended October 31, |
||||||||
| 2008 | 2007 | |||||||
| (in thousands) | ||||||||
| Net cash used in operating activities | $ | (53,029 | ) | $ | (55,397 | ) | ||
| Investing activities | ||||||||
| Capital expenditures | (2,891 | ) | (9,175 | ) | ||||
| Collection of notes receivable, net | 15 | 413 | ||||||
| Investments and acquisitions | — | (11,947 | ) | |||||
| Restricted cash and cash equivalents | (17,977 | ) | 174 | |||||
| Proceeds from redemptions of investments | 5,000 | — | ||||||
| Proceeds from sale of building | — | 5,388 | ||||||
| Purchase of debt portfolios | — | (36,871 | ) | |||||
| Principal collections and proceeds on resale of debt portfolios | 3,607 | 6,927 | ||||||
| Proceeds from sales and maturities of marketable securities | 52,312 | 419,912 | ||||||
| Purchases of marketable securities | (19,890 | ) | (293,891 | ) | ||||
| Net cash provided by investing activities | 20,176 | 80,930 | ||||||
| Financing activities | ||||||||
| Distributions to minority shareholders of subsidiaries | (639 | ) | (1,088 | ) | ||||
| Proceeds from sale of stock of subsidiary | 987 | — | ||||||
| Repayments of capital lease obligations | (2,259 | ) | (4,538 | ) | ||||
| Repayments of borrowings | (507 | ) | (681 | ) | ||||
| Repurchases of common stock and Class B common stock | (2,894 | ) | (38,190 | ) | ||||
| Net cash used in financing activities | (5,312 | ) | (44,497 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (4,320 | ) | 1,790 | |||||
| Net decrease in cash and cash equivalents | (42,485 | ) | (17,174 | ) | ||||
| Cash and cash equivalents, beginning of period | 164,886 | 151,404 | ||||||
| Cash and cash equivalents, end of period | $ | 122,401 | $ | 134,230 | ||||
| Supplemental schedule of non-cash investing activities | ||||||||
|
Purchases of property, plant and equipment through capital lease obligations |
$ | 95 | $ | 234 | ||||
| SELECTED CONSOLIDATED FINANCIAL DATA | ||||||||||||||||||||||||||||||||
|
THREE MONTHS ENDED OCTOBER 31, 2009 |
||||||||||||||||||||||||||||||||
| Figures may not foot or cross-foot due to rounding | ||||||||||||||||||||||||||||||||
| Total IDT | Wholesale | Calling Cards | CPS | IDT | IDT | IDT | ||||||||||||||||||||||||||
| (In thousands) | Corporation | Telecom | Telecom | Telecom | Carmel | Energy | Capital | Corporate | ||||||||||||||||||||||||
| STATEMENT OF OPERATIONS DATA | ||||||||||||||||||||||||||||||||
| Revenues | $ 441,354 | $ | 160,517 | $ | 175,243 | $ | 17,779 | $ | 8,852 | $ | 67,160 | $ | 11,803 | $ | – | |||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||||||||
| Direct cost of revenues (exclusive of depreciation and amortization) | 339,340 | 136,872 | 135,785 | 8,389 | 6,984 | 46,967 | 4,344 | – | ||||||||||||||||||||||||
| Selling, general and administrative | 94,944 | 19,401 | 39,907 | 4,496 | 1,794 | 8,703 | 9,592 | 11,050 | ||||||||||||||||||||||||
| Bad debt | 1,900 | 528 | 1,721 | (1,044 | ) | 243 | 340 | 112 | – | |||||||||||||||||||||||
| Research and development | 1,644 | – | 849 | – | – | – | 795 | – | ||||||||||||||||||||||||
| Depreciation and amortization | 14,029 | 2,890 | 8,346 | 325 | 152 | 30 | 1,952 | 334 | ||||||||||||||||||||||||
| Restructuring and severance charges | 2,017 | (22 | ) | (722 | ) | (36 | ) | 389 | 15 | 1,065 | 1,328 | |||||||||||||||||||||
| Total costs and expenses | 453,874 | 159,669 | 185,886 | 12,130 | 9,562 | 56,055 | 17,860 | 12,712 | ||||||||||||||||||||||||
| (Loss) income from operations | (12,520 | ) | $ | 848 | $ | (10,643 | ) | $ | 5,649 | $ | (710 | ) | $ | 11,105 | $ | (6,057 | ) | $ | (12,712 | ) | ||||||||||||
| Interest expense, net | (932 | ) | ||||||||||||||||||||||||||||||
| Other expense, net | (21,202 | ) | ||||||||||||||||||||||||||||||
| Loss before minority interests and income taxes | (34,654 | ) | ||||||||||||||||||||||||||||||
| Minority interests | 364 | |||||||||||||||||||||||||||||||
| Provision for income taxes | (2,968 | ) | ||||||||||||||||||||||||||||||
| Net (loss) | $ (37,258 | ) | ||||||||||||||||||||||||||||||
IDT Corporation Investor Relations
Bill Ulrey, 973-438-3838
william.ulrey@idt.net
