·Consolidated Revenues Increase 16.9% Year-over-Year, to a Record $527.0 Million
·Gross Profit Dollars Up 28.6% Year-over-Year, Reflecting 220 Basis Points Increase in Gross Margins
·IDT Entertainment Completes the Anchor Bay and Mainframe Acquisitions
NEWARK, N.J. — March 16, 2004 —IDT Corporation (NYSE: IDT, IDT.C) today reported record revenues of $527.0 million for the second quarter of its Fiscal Year 2004, the three months ended January 31, 2004. Revenues for the second quarter increased 2.7% sequentially and 16.9% year-over-year.
Gross profits for the second quarter of Fiscal Year 2004 was $130.9 million, or 24.8% of revenues, as compared to gross profits of $118.8 million or 23.2% of revenues, last quarter and gross profits of $101.8 million, or 22.6% of revenues, in the second quarter of Fiscal Year 2003.
Net income for the second quarter of Fiscal Year 2004 was $18.4 million, or $0.20 per diluted share, as compared to a net loss of $12.5 million, or ($0.16) per share, in the second quarter of Fiscal Year 2003.
Other income of $32.3 million includes a gain of $21.6 million from an arbitration award in the Telefonica litigation, and a $9.4 million gain on the sale of subsidiary stock as a result of Net2Phone’s follow-on offering in November 2003.
Cash balances and marketable securities stood at $1.09 billion, including $138.8 million held by Net2Phone, as of the close of the second quarter.
IDT narrowed its loss from operations, with a $16.2 million loss from operations for the second quarter of Fiscal Year 2004, down from losses from operations of $18.4 million and $30.7 million, for the first quarter of Fiscal Year 2004 and the second quarter of Fiscal Year 2003, respectively. Included in the loss from operations for the second quarter of Fiscal Year 2004 was $1.5 million in non-cash compensation relating to the amortization of deferred compensation resulting from the issuance during the second quarter of 1.1 million shares of restricted shares of IDT stock to employees.
Excluding the operating results of Net2Phone (IDT’s Voice over IP business segment)1, the loss from operations in the second quarter of Fiscal Year 2004 was $7.5 million, compared with a loss from operations of $20.7 million in the second quarter of Fiscal Year 2003, and a loss from operations of $10.8 million in the first quarter of Fiscal Year 2004.
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