IDT Corporation Reports 3rd Quarter Fiscal Year 2019 Results.

NEWARK, N.J: IDT Corporation (NYSE: IDT) reported EPS of $0.15 and Non-GAAP EPS* of $0.20 on revenue of $341.3 million for the third quarter of FY 2019, the three months ended April 30, 2019.

3Q19 HIGHLIGHTS

(3Q19 results are compared to 3Q18)

Consolidated Results

Revenue decreased to $341.3 million from $365.4 million;

Revenue less direct cost of revenue increased to $58.5 million from $58.2 million. Increased margin contributions from IDT's growth initiatives more than offset the margin impact of decreased revenue from IDT's core offerings;

Income from operations increased to $2.7 million from a loss from operations of $1.7 million;

Adjusted EBITDA* increased to $8.9 million from $8.1 million;

EPS increased to $0.15 from a loss per share of $0.14;

Non-GAAP EPS increased to $0.20 from $0.07.

Growth Initiatives

net2phone's unified communications as a service (UCaaS) revenue increased 80% to $6.7 million including the impact of the acquisition of Versature, a Canadian UCaaS provider, in 1Q19;

National Retail Solutions (NRS) revenue increased 32% to $1.5 million. NRS operated approximately 7,200 active terminals at April 30, 2019 compared to roughly 4,600 a year earlier;

BOSS Revolution international money transfer revenue increased 34% to $6.1 million. Revenue from its direct-to-consumer channel increased 98% to $3.9 million.

REMARKS BY SHMUEL JONAS, CEO OF IDT CORPORATION

"IDT's third quarter results were consistent with recent trends. While our revenue was down substantially, we were able to maintain gross profit while continuing to invest in our growth initiatives.

"Adjusted EBITDA increased 10% year over year to $8.9 million in the third quarter, and income from operations increased to $2.7 million from a loss from operations of $1.7 million in the year ago quarter.

"Our growth initiatives continued to perform well. Net2phone's unified communications business generated $6.7 million in revenue this quarter compared to $3.7 million a year ago. As of April 30th, net2phone served 89,000 seats. National Retail Solutions revenue increased 32% year over year to $1.5 million, and our POS network now serves over 7000 independent retailers around the country. BOSS Revolution money transfer revenue increased 34% year over year to $6.1 million. Direct-to-consumer revenue increased 98% year over year and we are now executing well over 300,000 transactions per month from all channels. Our MVNO continues to emphasize online acquisition.

"Overall, we head into the fourth quarter in a strong position. We still face challenges on multiple fronts, but our team deserves great credit for the considerable progress we have made diversifying our sources of revenue and margin."

3Q19 CONSOLIDATED RESULTS

Results

(in millions, except EPS)

3Q19

2Q19

3Q18

3Q19 - 3Q18

Change (%/$)

Revenue

$341.3

$349.5

$365.4

(6.6)%

Direct cost of revenue

$282.8

$291.2

$307.2

(7.9)%

Revenue less direct cost of revenue

$58.5

$58.3

$58.2

+0.4%

Direct cost...