IDT Corp. (IDT) filed Annual Report for the period ended 2009-07-31.
IDT Corporation through its IDT Telecom subsidiary is a facilities-based multinational carrier that provides a broad range of telecommunications services to retail and wholesale customers worldwide. IDT Telecom by means of its own national telecommunications backbone and fiber optic network infrastructure provides its customers with integrated and competitively priced international and domestic long distance and domestic all-distance telephony and prepaid calling cards. Idt Corp. has a market cap of $87.8 million; its shares were traded at around $3.61 with and P/S ratio of 0.1.
Highlight of Business Operations:
We completed an initial public offering of our common stock on March 15, 1996. Our common stock was quoted on the NASDAQ National Market until February 26, 2001, at which time it became listed on the New York Stock Exchange, where it now trades under the symbol “IDT.C.” On May 31, 2001, we distributed a stock dividend of one share of our Class B common stock for each outstanding share of our common stock, Class A common stock and Class B common stock. On June 1, 2001, our Class B common stock was listed on the New York Stock Exchange and now trades under the symbol “IDT.” On September 30, 2008 and October 8, 2008, we received notices from the New York Stock Exchange, or NYSE, that we were no longer in compliance with the NYSE’s $100 million market capitalization threshold and the $1.00 average closing price over a consecutive 30-day trading period requirement, respectively, required for continued listing. We submitted a plan to the NYSE to regain compliance with the market capitalization standard, and that plan was accepted. The NYSE monitors compliance with the plan and may commence delisting procedures if we fail to meet the milestones set forth in our plan. We have until March 2010 to regain compliance with the $100 million market capitalization standard. In addition, according to the rules of the NYSE, the NYSE will promptly initiate suspension and delisting procedures with respect to a listed company that is determined to have average global market capitalization over a consecutive 30 trading-day period of less than $25 million. As of October 26, 2009, we had a 30-day average market capitalization of $71.3 million. We are currently in compliance with this $25 million threshold, but not the $100 million threshold. On April 8, 2009, the NYSE notified us that the stock price for each of our listed equity securities was above the NYSE’s minimum requirement of a $1.00 average share price over the preceding 30 trading days and a $1.00 share price on the close of the last trading day of the six-month cure period (April 8, 2009), thus restoring our compliance with the minimum share price requirement for continued listing on the NYSE.
On June 24, 2009, we acquired the 49% interest in Union Telecard Alliance, LLC, or UTA, that we did not own in exchange for (a) $4.9 million in cash, (b) a promissory note in the principal amount of $1.2 million payable in thirty-six equal monthly installments, (c) the forgiveness of a note receivable in the amount of $1.2 million including principal and accrued interest, (d) the assignment of all of the interests in Union Telecard Dominicana, S.A., or UTA DR, held by UTA, (e) the assignment of an 80% ownership interest in Ethnic Grocery Brands LLC, or EGB, held by UTA, and (f) other consideration of $0.4 million. UTA retained a 10% ownership interest in EGB. In addition, the seller may receive up to an additional $1.7 million for post-closing
In fiscal 2009, IDT Telecom had revenues of $1,234.4 million, representing 80.2% of our total consolidated revenues from continuing operations, and an operating loss of $(27.2) million, as compared with revenues of $1,459.7 million and operating loss of $(26.7) million in fiscal 2008. Loss from operations in fiscal 2008 was partially offset by income from an arbitration award of $40.0 million including accrued interest, related to Altice One’s termination of cable telephony license agreements with Net2Phone that were entered into in November 2004.
During fiscal 2009, our Telecom Platform Services segment worldwide generated $1,180.7 million in revenues and had an operating loss of $(45.8) million, as compared with $1,379.2 million and $(48.5) million in fiscal 2008. Our prepaid products businesses accounted for over 48% of the revenues of our Telecom Platform Services segment in fiscal 2009. During fiscal 2009, we sold 80% of our prepaid products in the United States, as compared to 83% in fiscal 2008.
The Consumer Phone Services segment generated revenues of $53.7 million and operating income of $18.6 million in fiscal 2009, as compared to revenues of $80.5 million and operating income of $21.8 million in fiscal 2008.
In fiscal 2009, IDT Energy generated revenues of $264.7 million comprised of $157.2 million electric revenues and $107.5 million i
IDT is in the portfolios of Irving Kahn of Kahn Brothers & Company Inc..
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