Q2 2011 Earnings Call
March 15, 2011 5:15 pm ET
Howard Jonas - Founder, Chairman, Chief Executive Officer and Chairman of Nominating Committee
Bill Ulrey - Vice President of Investor Relations & External Affairs
Jonathan Reich - Chief Executive Officer - Net2Phone Global Services LLC
Previous Statements by IDT
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Today, you'll hear from Jonathan Reich, Vice President for Sales and Business Development at Fabrix. He will speak following Howard Jonas. Both this audio file, consisting of management's prerecorded remarks, and our earnings release are available on the Investor Relations page of the IDT Corporation website, www.idt.net. The earnings release has also been filed on a Form 8-K with the SEC.
If, after listening to management’s presentation and reading the company’s earnings release, you have any questions for management related to the announced results, please email them to us at the following address, firstname.lastname@example.org, no later than the close of business on Friday, March 18. Please include your name and firm name, if applicable, in your email. If we can constructively answer your question, we will post your question along with your name, your firm’s name and our answer on the IDT Investor Relations page as early as next Wednesday, March 23, after market close. We will also file a Form 8-K with the SEC containing the questions and answers.
Any forward-looking statements made during this audio presentation 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 either to update any forward-looking statements that we have made or may make or to update the factors that may cause actual results to differ materially from those that we forecast.
In this presentation and in our written responses to questions thereafter, we may make references to adjusted EBITDA. Adjusted EBITDA for all periods discussed during our remarks is a non-GAAP measure, representing operating income or loss from operations, exclusive of depreciation and amortization, severance and other charges and other operating gains net. Adjusted EBITDA is one of several key financial metrics management uses to evaluate the operating performances of the company and its segments. A 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 net income for the company as a whole. Now, to begin the discussion of our financial and operating results, here is IDT Corporation's Chairman and CEO, Howard Jonas.
As some of you listening in know, we held an Investor's Day in New York in February. I thought our management team did a wonderful job discussing all the great work being done in the company, and I want to thank and congratulate them. If you haven't listened to their Investor Day presentations nor seen the slides, do yourself a favor and go to the IDT website and get them. After listening to the presentations, you can't help but conclude that IDT is doing extremely well and has great upside potential. There is no better example of that than Fabrix. Jonathan Reich, a Senior Executive of Fabrix, is going to talk to you in greater detail about the company and the opportunity after I'm done with my remarks.
By way of background, Fabrix has developed groundbreaking video management software that is changing the way video is stored, delivered and optimized. For example, Fabrix software is now being used to power major North American cable operators' cloud-based DVR offering. We're eliminating the need for cable MSOs to provide and service DVR boxes in the home.
Fabrix also won a second contract from another large North American cable provider, who is using the Fabrix platform to greatly expand its video storage library so it can compete with the likes of Netflix and Hulu. Fabrix offers world-class technology and has outperformed the established players in this market to win business for major MSOs. The potential market is enormous, and it is not limited to cable operators. Telcos, satellites, over-the-top providers, as well as other industries with heavy video management requirements, are in our target market, including players in the life sciences, oil and gas, motion picture and surveillance industries. All can benefit from our technology. And I should also point out that other players in this market, with less established credentials and forward solutions, have sold for hundreds of millions of dollars and more in recent years.
Another IDT business that's on the verge of doing great things is Zedge. Here again, there is a tremendous opportunity. Zedge has a huge base of just under 40 million unique visitors a month and is growing its global use of base very rapidly. But most importantly, Zedge will soon be getting into new areas to leverage and monetize all this traffic.