IDT Corporation (IDT) has reported a 422.73 percent jump in profit for the quarter ended Oct. 31, 2016. The company has earned $21.92 million, or $0.96 a share in the quarter, compared with $4.19 million, or $0.18 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $10.10 million, or $0.44 a share compared with $8.10 million or $0.35 a share, a year ago.
Revenue during the quarter dropped 5.49 percent to $369.15 million from $390.58 million in the previous year period. Gross margin for the quarter contracted 171 basis points over the previous year period to 15.20 percent. Total expenses were 98.60 percent of quarterly revenues, up from 97.97 percent for the same period last year. That has resulted in a contraction of 62 basis points in operating margin to 1.40 percent.
Operating income for the quarter was $5.19 million, compared with $7.92 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.70 million compared with $13 million in the prior year period. At the same time, adjusted EBITDA margin contracted 43 basis points in the quarter to 2.90 percent from 3.33 percent in the last year period.
Shmuel Jonas, IDT's chief executive officer, said, "IDT's financial results for the first quarter fiscal 2017 include a year over year decline in revenue and a decrease in SG&A expense. Our continuing efforts to reduce overhead expense and streamline our operations mitigated the impact of the revenue loss on our bottom line. Our net income was impacted positively by a one-time benefit from income taxes among other factors."
Operating cash flow drops significantly
IDT Corporation has generated cash of $5.49 million from operating activities during the quarter, down 60.65 percent or $ 8.46 million, when compared with the last year period.
The company has spent $18.49 million cash to meet investing activities during the quarter as against cash outgo of $6.78 million in the last year period.
The company has spent $3.13 million cash to carry out financing activities during the quarter as against cash outgo of $11.18 million in the last year period.
Cash and cash equivalents stood at $91.93 million as on Oct. 31, 2016, down 12.84 percent or $13.54 million from $105.47 million on Oct. 31, 2015.
Working capital remains negative
Working capital of IDT Corporation was negative $1.49 million on Oct. 31, 2016 compared with negative $3.88 million on Oct. 31, 2015. Current ratio was at 1 as on Oct. 31, 2016, up from 0.99 on Oct. 31, 2015.
Days sales outstanding were almost stable at 16 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding was almost stable at 9 days for the quarter, when compared with the previous year period.
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