IDT Corporation (NYSE: IDT, IDT.C) announces operating results for the first quarter of fiscal 2008, the three months ended October 31, 2007.
- Q1 Revenues: $468.1 million, down 10.4% year-over-year.
- Q1 Net income: $6.8 million, versus net income of $213.9 million one year ago, of which $191 million was attributed to discontinued operations.
- Q1 Pretax income from continuing operations was $10.6 million, compared with $24.4 million in the year-ago period.
- Q1 Net income per share of $0.09, or $0.08 diluted, versus net income per share of $2.51 one year ago, or $2.43 per diluted share.
- Cash, cash equivalents, marketable securities, and investments totaled $542.1 million as of the end of the fiscal first quarter.
The following table summarizes the operating performance of IDT‘s continuing businesses:
|$ millions||Revenues||Income (Loss) from Operations|
|Consumer Phone Services||25.2||30.0||53.8||5.2||9.8||43.6|
|IDT Telecom Total||402.6||431.9||471.2||31.4||(71.3||)||39.7|
Columns in table may not add due to rounding.
Income from operations in our Wholesale Telecom segment in Q1 2008 includes a $40.0 million arbitration award described below. Income from operations in our Consumer Phone Services segment in Q1 2007 includes a $41.8 million gain on the sale of our U.K.-based consumer phone services business, Toucan.
- On November 26, 2007 we announced that our Net2Phone Cable Telephony subsidiary had been awarded approximately €23 million, plus interest from November 2005, in an arbitration proceeding against Altice One S.A. and certain of its affiliates. The arbitration proceedings related to Altice’s termination of cable telephony license agreements Net2Phone had entered into in November 2004. We recorded a gain of $40.0 million for this arbitration award, including accrued interest, in our Wholesale Telecommunications Services segment in Q1 2008.
- On October 26, 2007 we announced that Stephen R. Brown, our former CFO and Treasurer, and the former co-Chairman of IDT Entertainment, was appointed as our Chief Operating Officer. Mr. Brown replaces Mr. Lichtenstein, who has assumed the position of CEO of IDT Telecom.
- During the first quarter we purchased an aggregate of 4.9 million shares of our Class B Common Stock for $38.2 million under our stock buy back program. As of October 31, 2007, 18.0 million shares of Class B Common Stock or Common Stock remained available for repurchase under the stock repurchase program. As of December 10, 2007, we had acquired another 0.4 million shares of our Class B Common Stock and Common Stock, for $3.6 million.
- On September 19, 2007 we entered into an agreement for the purchase of our headquarters office building for approximately $22.8 million in cash and the assumption of the remainder of the existing mortgage on the premises, for a total purchase price of $50 million. The purchase is subject to customary conditions and contingencies. We expect the closing of the purchase to occur during our second or third fiscal quarter in fiscal 2008.
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