IDT (IDT) Q4 2005 earnings summary

Executive summary

• FY2005 revenue reached $2.47B, with record telecom minutes billed of 23.6B; net loss was $43.8M.

• Growth initiatives centered on Hispanic-focused products, energy deregulation, animated films, and fixed-wireless infrastructure.

Financial highlights

• Revenue was $2,468.5M, up from $2,216.9M in FY2004.

• Operating loss was $115.8M versus $121.9M; net loss was $43.8M versus $58.9M.

• Operating cash flow was negative $3.8M; capital expenditures were $112.3M and net investments and acquisitions were $1.7M.

• Year-end cash, marketable securities, and restricted cash and marketable securities totaled $952.4M; working capital was $713.1M.

Outlook and guidance

• Energy operations were expected to grow significantly in FY2006, with expansion planned as cost-effective service becomes available in additional localities and states.

• Plans included extending Hispanic customer offerings into education, finance, entertainment, gift cards, and money transfers, alongside Túyo Mobile.

• Yankee Irving was scheduled for theatrical release in August 2006; animation and live-action projects were also planned for broadcast and direct-to-video markets.

• Toucan expansion into European markets was underway, with a Netherlands launch announced.