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IDT Corporation (IDT)
F2Q10 (Qtr End 01/31/10) Earnings Call
March 11, 2010 5:30 pm ET
Bill Ulrey – IR
Howard Jonas – CEO and Chairman
Bill Pereira – CFO and Treasurer
Previous Statements by IDT
» IDT Corporation F1Q10 (Qtr End 10/31/09) Earnings Call Transcript
» IDT Corporation F4Q09 (Qtr End 7/31/09) Earnings Call Transcript
» IDT F3Q09 (Qtr End 4/30/09) Earnings Call Transcript
This quarter we are following the same format we used in prior quarters. Our earnings release is available on the Investor Relations page of IDT Corporation’s website at www.IDT.net. We have also filed the release on a Form 8-K with the SEC.
These remarks are pre-recorded. If you have any questions after listening to them and reading the company’s earnings release, please e-mail them to us at the following address: email@example.com. We will accept questions through the close of business tomorrow, March 12th. Please include your name and firm name, if applicable, in your e-mail. If we can constructively answer your question, we will post your question, along with your name and your firm’s name and our answer on the Investor Relations page of IDT’s website as early as next Wednesday, March 17th, after market close or soon thereafter.
We will also file a Form 8-K with the SEC containing the questions and the answers. If you have any questions or suggestions regarding our Q&A process, please e-mail us at the same address.
Throughout this webcast, any forward-looking statements made during this webcast or in the written Q&A, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which we anticipate. These risks and uncertainties include, but are not limited to, specific risks and uncertainties discussed in the reports that we file periodically with the SEC. We assume no obligation to update any forward-looking statements that we have made or may make or to update you on the factors that may cause actual results to differ materially from those that we forecast.
In the prepared remarks, you will hear today and also possibly in our written responses to questions thereafter, we will make reference to adjusted EBITDA, earnings before income taxes, depreciation and amortization. Adjusted EBITDA for all periods discussed during our remarks is a non-GAAP measure, representing operating income or loss exclusive of depreciation and amortization, and restructuring and impairment charges.
Adjusted EBITDA is one of several key financial metrics management uses to evaluate the company’s and the different segments’ operating performances. The schedule provided in the earnings release reconciles adjusted EBITDA to the nearest corresponding GAAP measure, income from operations, for each of our segments and to both income from operations and to net income for the company as a whole.
Now to begin the discussion of our financial and operating results, here's IDT Corporation's Chairman and Chief Executive Officer, Howard Jonas.
Thank you, Bill. Good afternoon to everyone. I am Howard Jonas, Chairman and CEO of IDT. Let me begin with the black bottom lin. IDT attained profitability this quarter, generating positive income from operations of $7.6 million and net income attributable to IDT of $3.7 million. Compared to a year ago, when our loss from operations was $6.2 million and our net loss was $62 million, it is a dramatic improvement. I want to take a moment here to thank and congratulate all the IDT employees listening. This turnaround was a direct result of your efforts. I very much appreciate your hard work and believe that if we continue to apply ourselves, great things are in store for all of us at IDT.
What is more, we now have positive net income for the first-half of fiscal 2010, and all of us here at IDT are focused in keeping it that way for the remainder of the year and beyond. Bill Pereira is going to get into the details of our results for the quarter, but I want to make two big picture points before turning the call over to him.
The first point is that we have broadened our strategic outlook beyond cost-cutting, and are working on initiatives that will grow our core businesses. At IDT telecom, our minutes of use were up by 13% year-over-year and by 10% compared to a prior quarter, and revenues increased by $14.8 million compared to the first quarter of the fiscal year. That is not only a seasonal improvement. In fact when you compare telecom’s quarterly revenues in fiscal 2009 to the prior quarter, you'll find that revenues did not increase at all. In fact they declined by $27.5 million. So we're generating real revenue growth.
In the United States this expansion is driven by the consolidation of IDT retail with UTA, our distribution company, and has been helped by aggressive pricing of our services. But we have also increased telecom retail revenue in Europe and Asia by double-digit percentages year-over-year. Globally, we will continue growing our retail businesses by improving the scope and reach of our distribution networks and by developing new and innovative products to meet the needs of our customers.
Also within telecom our Fabric [ph] TV initiative is showing real famous. As you may recall, Fabric was developed a highly innovative, proprietary video content delivery and storage platform, enabling cable operators, telecommunication providers and ISPs to provide a wide range of video application, including next generation video on demand and remote storage capabilities.