IDT (IDT) Q4 2003 earnings summary

Executive summary

• FY03 revenue reached $1,834.5M, up 16% YoY; telecom operating income more than doubled, while reported net loss was $18.5M. Cash and marketable securities were $1,020.8M.

• Operations billed 16.46B telecom minutes and served customers through four divisions, with a global workforce of about 4,000.

Financial highlights

• FY03 total revenue was $1,834.5M versus $1,583.8M in FY02; management attributed most growth to telecom.

• Net loss was $18.5M, or $0.23 per share, versus a $303.3M loss, or $4.04 per share, in FY02.

• Operating loss before impairment charges and other narrowed to $118.2M from $182.8M in FY02.

• Operating cash flow was $44.4M, versus a $34.4M outflow in FY02.

Outlook and guidance

• Management said Q4 FY03 was profitable and expected materially stronger earnings going forward, citing minimal debt and preserved cash reserves.

• Consumer unlimited calling was available in NY, NJ, PA and MD, with plans to extend service nationwide.

• Cost reductions and integration of the Winstar and IDT networks were expected to continue at IDT Solutions.