IDT Corp. (IDT) Reports Q2 EPS of $0.04 on Revenues of $58.3M

IDT Corp. (NYSE: IDT) reported Q2 EPS of $0.04, versus $0.00 reported last year. Revenue for the quarter came in at $58.3 million, versus $58.7 million reported last year.

Consolidated Results

• Revenue less direct cost of revenue decreased to $58.3 million from $58.7 million;
• Income from operations increased to $1.5 million from a loss from operations of $480 thousand;
• Adjusted EBITDA* increased to $7.4 million from $6.3 million;
• EPS of $0.01 compared to $0.06;
• Non-GAAP EPS increased to $0.04 from $0.00.

Growth Initiatives

• net2phone's unified communications as a service (UCaaS) revenue increased 86% to $6.0 million including Versature, the Canadian UCaaS provider acquired in 1Q19;
• National Retail Solutions (NRS) revenue increased 56% to $1.5 million. NRS operated 6,600 active terminals at January 31, 2019 compared to 3,800 a year earlier;
• BOSS Revolution international money transfer revenue increased 35% to $5.4 million. Revenue from its direct-to-consumer channel increased 145% to $3.3 million.

REMARKS BY SHMUEL JONAS, CEO OF IDT CORPORATION

"IDT's technology-driven growth initiatives performed well in the second quarter.

"Revenue generated by net2phone's unified communications as a service offering increased by 86% compared to the year ago quarter and achieved an annual run rate of over $24 million. We performed ahead of plan in our South American markets – most notably in Brazil. Operationally, our priority continues to be the incremental deployment of net2phone's proprietary technology platform. Reviews and feedback from customers on the new platform have been positive and enthusiastic. Also, within net2phone, we are focused on developing a robust direct-to-consumer channel in all of our markets worldwide.

"National Retail Solutions revenue increased 56% in the second quarter to an annual run rate of over 6 million dollars, and its point-of-sale network now comprises over 6,600 active terminals. We have only begun to tap the potential of this business, and are building-out and optimizing the offerings that will more fully monetize the network's capabilities.

"Our international money transfer business surpassed $20 million in annualized-run-rate revenue this quarter. Direct to consumer sales increased 145% year over year as we expanded our international disbursement network, enhanced our transaction fulfillment technology and intensified marketing.

"We continue to focus on enhancing our profitability while investing in our growth initiatives. Consolidated revenue decreased by $46.4 million compared to the second quarter 2018 primarily because of a reduction in Carrier Services traffic on marginally profitable routes. The revenue decrease had a limited impact on margin contribution, and was offset by increased margin contributions from our growth initiatives and by reductions in SG&A expense – primarily generated from within our core business operations. As a result, we increased income from operations and Adjusted EBITDA compared to both the year ago quarter and the first quarter of this year."

For earnings history and earnings-related data on IDT Corp. (IDT) click here.

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