IDT Corporation (IDT) swung to a net loss for the quarter ended Apr. 30, 2017. The company has made a net loss of $4.78 million, or $ 0.21 a share in the quarter, against a net profit of $4.24 million, or $0.19 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $6.50 million, or $0.28 a share compared with $8.60 million or $0.38 a share, a year ago. Revenue during the quarter grew 4.19 percent to $370.04 million from $355.15 million in the previous year period. Gross margin for the quarter contracted 249 basis points over the previous year period to 14.95 percent. Operating margin for the quarter stood at negative 1.76 percent as compared to a positive 1.60 percent for the previous year period.
Operating loss for the quarter was $6.50 million, compared with an operating income of $5.68 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.10 million compared with $10.30 million in the prior year period. At the same time, adjusted EBITDA margin contracted 44 basis points in the quarter to 2.46 percent from 2.90 percent in the last year period.
REMARKS BY SHMUEL JONAS, chief executive officer OF IDT CORPORATION "I am very pleased by the growth of our early stage business initiatives during the third quarter, even as we took steps to strengthen our core business offerings and further streamline operations. National Retail Solutions continues to expand rapidly and is developing new ways to leverage our point-of-sale network to create additional value for our retailers, consumer package good suppliers and our BR Club members. At net2phone, our cloud-based PBX offering is on track to double the number of seats it serves in the first six months of the year. We also successfully launched the offering in Brazil in January and in Argentina in May."
Operating cash flow drops significantly
IDT Corporation has generated cash of $0.51 million from operating activities during the nine month period, down 98.57 percent or $35.32 million, when compared with the last year period. The company has spent $35.29 million cash to meet investing activities during the nine month period as against cash outgo of $16.04 million in the last year period.
The company has spent $3.05 million cash to carry out financing activities during the nine month period as against cash outgo of $25.65 million in the last year period.
Cash and cash equivalents stood at $71.45 million as on Apr. 30, 2017, down 29.35 percent or $29.68 million from $101.14 million on Apr. 30, 2016.
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