IDT (IDT) Q4 2002 earnings summary

Executive summary

• FY02 revenue rose 24% to $1,531.6M, driven mainly by Telecom; total minutes billed reached 11.3B.

• Cash and marketable securities exceeded $1B; long-term debt was $45.4M, with management describing the balance sheet as virtually debt-free.

Financial highlights

• Net loss was $303.3M, or $4.04 per share, versus net income of $532.4M, or $7.79 per share, in FY01.

• Telecom revenue was $1,430.7M; retail contributed $1,121.7M and wholesale $309.0M.

• Telecom EBITDA was $88.7M; Telecom operating income before impairment charges was $34.0M, versus a $103.6M loss in FY01.

• Operating cash flow was $21.7M; purchases of property, plant and equipment were $39.2M.

Outlook and guidance

• Wholesale expansion into Asia and the subcontinent was expected to support growth in the coming year.

• Winstar initiatives targeted lower operating costs, customer growth, deeper existing-customer relationships and sales-force upgrades.

• Management cited continued revenue growth, improving margins and a strong cash position as priorities for the coming years.