IDT Corporation (IDT) has reported a 78.47 percent plunge in profit for the quarter ended Jan. 31, 2017. The company has earned $0.88 million, or $0.04 a share in the quarter, compared with $4.06 million, or $0.18 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.10 million, or $0.27 a share compared with $9 million or $0.39 a share, a year ago. Revenue during the quarter dropped 3.90 percent to $367.56 million from $382.45 million in the previous year period. Gross margin for the quarter contracted 99 basis points over the previous year period to 15.41 percent. Total expenses were 99.15 percent of quarterly revenues, up from 98.33 percent for the same period last year. That has resulted in a contraction of 82 basis points in operating margin to 0.85 percent.
Operating income for the quarter was $3.13 million, compared with $6.38 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.30 million compared with $11.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 53 basis points in the quarter to 2.53 percent from 3.06 percent in the last year period.
SHMUEL JONAS, chief executive officer OF IDT CORPORATION commented "We made good progress in the second quarter building, deploying and scaling up the applications that will drive our growth going forward. We introduced the BOSS Revolution Money app including our flagship international money transfer service and released a major update of the BOSS Revolution calling app including messaging and free peer-to-peer calling. The two apps now work in tandem to provide a seamless user experience and convenient access to many of our consumer voice and payment offerings. We also continued rolling out the new Boss Revolution retailer portal across our nationwide network of stores. This upgrade makes it much easier for retailers to sell all BOSS Revolution products and services. "Our National Retail Solutions (NRS) and our net2phone UCaaS businesses are posting excellent results. NRS has increased the number of bodegas and retailers operating its POS terminals 10-fold over the past year, while net2phone quadrupled its customer base during the same period."
Operating cash flow turns negative
IDT Corporation has spent $0.81 million cash to meet operating activities during the first half as against cash inflow of $25.15 million in the last year period. The company has spent $21.04 million cash to meet investing activities during the first six months as against cash outgo of $9.94 million in the last year period.
The company has spent $9.34 million cash to carry out financing activities during the first six months as against cash outgo of $20.97 million in the last year period.
Cash and cash equivalents stood at $77.52 million as on Jan. 31, 2017, down 22.10 percent or $21.99 million from $99.51 million on Jan. 31, 2016.
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