Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jan. 31, 2019 | Mar. 07, 2019 | |
Entity Registrant Name | IDT CORP | |
Entity Central Index Key | 0001005731 | |
Amendment Flag | false | |
Trading Symbol | IDT | |
Current Fiscal Year End Date | --07-31 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Class A common stock | ||
Entity Common Stock Shares Outstanding | 1,574,326 | |
Class B common stock | ||
Entity Common Stock Shares Outstanding | 24,708,627 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2019 | Jul. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 74,445 | $ 68,089 |
Debt securities | 1,051 | 5,612 |
Trade accounts receivable, net of allowance for doubtful accounts of $3,037 at January 31, 2019 and $3,166 at July 31, 2018 | 50,164 | 69,481 |
Prepaid expenses | 20,432 | 19,550 |
Other current assets | 28,078 | 28,877 |
Assets held for sale | 167,083 | 137,272 |
Total current assets | 341,253 | 328,881 |
Property, plant and equipment, net | 36,186 | 36,068 |
Goodwill | 11,273 | 11,315 |
Other intangibles, net | 4,150 | 306 |
Equity investments | 7,754 | 6,633 |
Deferred income tax assets, net | 2,882 | 5,668 |
Other assets | 6,680 | 5,020 |
Assets held for sale | 5,962 | 5,706 |
Total assets | 416,140 | 399,597 |
Current liabilities: | ||
Trade accounts payable | 35,288 | 45,124 |
Accrued expenses | 119,206 | 129,818 |
Deferred revenue | 41,352 | 55,003 |
Other current liabilities | 6,557 | 8,269 |
Liabilities held for sale | 159,248 | 128,770 |
Total current liabilities | 361,651 | 366,984 |
Other liabilities | 853 | 768 |
Liabilities held for sale | 433 | 542 |
Total liabilities | 362,937 | 368,294 |
Commitments and contingencies | ||
IDT Corporation stockholders' equity: | ||
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued | ||
Additional paid-in capital | 271,959 | 294,047 |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 906 and 2,722 shares of Class B common stock at January 31, 2019 and July 31, 2018, respectively | (51,727) | (85,597) |
Accumulated other comprehensive loss | (4,455) | (4,972) |
Accumulated deficit | (163,366) | (173,103) |
Total IDT Corporation stockholders' equity | 52,700 | 30,664 |
Noncontrolling interests | 503 | 639 |
Total equity | 53,203 | 31,303 |
Total liabilities and equity | 416,140 | 399,597 |
Class A common stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | 33 | 33 |
Class B common stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | $ 256 | $ 256 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jan. 31, 2019 | Jul. 31, 2018 |
Allowance for doubtful accounts | $ 3,037 | $ 3,166 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | ||
Class A common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000 | 35,000 |
Common stock, shares issued | 3,272 | 3,272 |
Common stock, shares outstanding | 1,574 | 1,574 |
Treasury stock, common stock shares | 1,698 | 1,698 |
Class B common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 25,611 | 25,594 |
Common stock, shares outstanding | 24,705 | 22,872 |
Treasury stock, common stock shares | 906 | 2,722 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Consolidated Statements of Operations [Abstract] | ||||
Revenues | $ 349,473 | $ 395,883 | $ 711,789 | $ 789,438 |
Costs and expenses: | ||||
Direct cost of revenues (exclusive of depreciation and amortization) | 291,178 | 337,229 | 595,870 | 673,738 |
Selling, general and administrative | 50,900 | 52,358 | 101,452 | 102,429 |
Depreciation and amortization | 5,762 | 5,735 | 11,357 | 11,408 |
Severance | 195 | 635 | ||
Total costs and expenses | 347,840 | 395,517 | 708,679 | 788,210 |
Other operating expense, net | (90) | (846) | (285) | (1,625) |
Income (loss) from operations | 1,543 | (480) | 2,825 | (397) |
Interest income, net | 186 | 286 | 295 | 648 |
Other income (expense), net | 496 | 370 | (853) | (456) |
Income (loss) before income taxes | 2,225 | 176 | 2,267 | (205) |
(Provision for) benefit from income taxes | (1,736) | 1,514 | (2,926) | 99 |
Net income (loss) | 489 | 1,690 | (659) | (106) |
Net income attributable to noncontrolling interests | (300) | (174) | (601) | (470) |
Net income (loss) attributable to IDT Corporation | $ 189 | $ 1,516 | $ (1,260) | $ (576) |
Earnings (loss) per share attributable to IDT Corporation common stockholders: | ||||
Basic | $ 0.01 | $ 0.06 | $ (0.05) | $ (0.02) |
Diluted | $ 0.01 | $ 0.06 | $ (0.05) | $ (0.02) |
Weighted-average number of shares used in calculation of earnings (loss) per share: | ||||
Basic | 24,816 | 24,643 | 24,323 | 24,635 |
Diluted | 24,821 | 24,724 | 24,323 | 24,635 |
(i) Stock-based compensation included in selling, general and administrative expenses | $ 467 | $ 987 | $ 880 | $ 1,797 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 489 | $ 1,690 | $ (659) | $ (106) |
Other comprehensive (loss) income: | ||||
Change in unrealized loss on available-for-sale securities | 3 | (120) | 1 | (150) |
Foreign currency translation adjustments | (41) | 330 | 483 | (38) |
Other comprehensive (loss) income | (38) | 210 | 484 | (188) |
Comprehensive income (loss) | 451 | 1,900 | (175) | (294) |
Comprehensive income attributable to noncontrolling interests | (300) | (174) | (601) | (470) |
Comprehensive income (loss) attributable to IDT Corporation | $ 151 | $ 1,726 | $ (776) | $ (764) |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Noncontrolling Interests | IDT CorpAdditional Paid-In Capital | IDT CorpTreasury Stock | IDT CorpAccumulated Other Comprehensive Loss | IDT CorpAccumulated Deficit | IDT CorpClass A Common Stock | IDT CorpClass B Common Stock |
Beginning Balance at Jul. 31, 2017 | $ 154,557 | $ 8,823 | $ 394,462 | $ (83,304) | $ (2,343) | $ (163,370) | $ 33 | $ 256 |
Dividends declared | (9,440) | (9,440) | ||||||
Restricted Class B common stock purchased from employees | (61) | (61) | ||||||
Transfer of right to receive equity to Howard S. Jonas | (40) | (40) | ||||||
Consolidation of Lipomedix Pharmaceuticals Ltd. | 558 | 558 | ||||||
Stock-based compensation | 1,797 | 1,797 | ||||||
Distributions to noncontrolling interests | (717) | (717) | ||||||
Other comprehensive loss/income | (188) | (188) | ||||||
Net income (loss) | (106) | 470 | (576) | |||||
Ending Balance at Jan. 31, 2018 | 146,360 | 9,094 | 396,259 | (83,365) | (2,531) | (173,386) | 33 | 256 |
Beginning Balance at Oct. 31, 2017 | 148,050 | 8,739 | 395,272 | (83,327) | (2,741) | (170,182) | 33 | 256 |
Dividends declared | (4,720) | (4,720) | ||||||
Restricted Class B common stock purchased from employees | (38) | (38) | ||||||
Transfer of right to receive equity to Howard S. Jonas | (40) | (40) | ||||||
Consolidation of Lipomedix Pharmaceuticals Ltd. | 558 | 558 | ||||||
Stock-based compensation | 987 | 987 | ||||||
Distributions to noncontrolling interests | (337) | (337) | ||||||
Other comprehensive loss/income | 210 | 210 | ||||||
Net income (loss) | 1,690 | 174 | 1,516 | |||||
Ending Balance at Jan. 31, 2018 | 146,360 | 9,094 | 396,259 | (83,365) | (2,531) | (173,386) | 33 | 256 |
Beginning Balance at Jul. 31, 2018 | 31,303 | 639 | 294,047 | (85,597) | (4,972) | (173,103) | 33 | 256 |
Adjustment from the adoption of change in revenue recognition (see Note 2)/in accounting for equity investments (see Note 8) | ASU 2014-09 | 9,857 | 9,857 | ||||||
Adjustment from the adoption of change in revenue recognition (see Note 2)/in accounting for equity investments (see Note 8) | ASU 2016-01 | 1,173 | 33 | 1,140 | |||||
BALANCE at Jul. 31, 2018 | 42,333 | 639 | 294,047 | (85,597) | (4,939) | (162,106) | 33 | 256 |
Restricted Class B common stock purchased from employees | (16) | (16) | ||||||
Repurchases of Class B common stock through repurchase program | (3,854) | (3,854) | ||||||
Sale of Class B common stock to Howard S. Jonas | 14,772 | (22,968) | 37,740 | |||||
Stock-based compensation | 880 | 880 | ||||||
Distributions to noncontrolling interests | (737) | (737) | ||||||
Other comprehensive loss/income | 484 | 484 | ||||||
Net income (loss) | (659) | 601 | (1,260) | |||||
Ending Balance at Jan. 31, 2019 | 53,203 | 503 | 271,959 | (51,727) | (4,455) | (163,366) | 33 | 256 |
Beginning Balance at Oct. 31, 2018 | 37,927 | 601 | 294,460 | (89,451) | (4,417) | (163,555) | 33 | 256 |
Restricted Class B common stock purchased from employees | (16) | (16) | ||||||
Sale of Class B common stock to Howard S. Jonas | 14,772 | (22,968) | 37,740 | |||||
Stock-based compensation | 467 | 467 | ||||||
Distributions to noncontrolling interests | (398) | (398) | ||||||
Other comprehensive loss/income | (38) | (38) | ||||||
Net income (loss) | 489 | 300 | 189 | |||||
Ending Balance at Jan. 31, 2019 | $ 53,203 | $ 503 | $ 271,959 | $ (51,727) | $ (4,455) | $ (163,366) | $ 33 | $ 256 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | 6 Months Ended |
Jan. 31, 2018 | Jan. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared, per share | $ 0.19 | $ 0.38 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Operating activities | ||
Net loss | $ (659) | $ (106) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 11,357 | 11,408 |
Deferred income taxes | 2,785 | 3,212 |
Provision for doubtful accounts receivable | 620 | 696 |
Stock-based compensation | 880 | 1,797 |
Other | (78) | (68) |
Change in assets and liabilities: | ||
Trade accounts receivable | 17,333 | (4,568) |
Prepaid expenses, other current assets and other assets | 79 | (15,109) |
Trade accounts payable, accrued expenses, other current liabilities and other liabilities | (18,288) | (20,347) |
Customer deposits at IDT Financial Services Limited, our Gibraltar-based bank | 29,015 | 4,481 |
Deferred revenue | (4,997) | (4,710) |
Net cash provided by (used in) operating activities | 38,047 | (23,314) |
Investing activities | ||
Capital expenditures | (9,396) | (10,931) |
Payment for acquisition, net of cash acquired | (5,453) | |
Proceeds from redemption of investments | 1,000 | |
Cash used for purchase of investments | (500) | |
Proceeds from sale of interest in Straight Path IP Group Holding, Inc. | 6,000 | |
Purchase of IP Interest from Straight Path Communications Inc. | (6,000) | |
Purchases of marketable securities | (19,797) | |
Proceeds from maturities and sales of marketable securities | 4,555 | 31,610 |
Net cash (used in) provided by investing activities | (9,794) | 882 |
Financing activities | ||
Dividends paid | (9,440) | |
Distributions to noncontrolling interests | (737) | (717) |
Proceeds from sale of Class B common stock to Howard S. Jonas | 13,272 | |
Repayment of other liabilities acquired. | (615) | |
Proceeds from borrowings under revolving credit facility | 3,000 | 19,080 |
Repayments of borrowings under revolving credit facility | (3,000) | (19,080) |
Repurchases of Class B common stock | (3,870) | (61) |
Net cash provided by (used in) financing activities | 8,050 | (10,218) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents | (236) | 9,490 |
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents | 36,067 | (23,160) |
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period | 203,197 | 211,963 |
Cash, cash equivalents, and restricted cash and cash equivalents at end of period | 239,264 | 188,803 |
Supplemental schedule of non-cash financing activities | ||
Howard S. Jonas' advance payment used for sale of Class B common stock | $ 1,500 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jan. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1—Basis of Presentation The accompanying unaudited consolidated financial statements of IDT Corporation and its subsidiaries (the “Company” or “IDT”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended January 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2019. The balance sheet at July 31, 2018 has been derived from the Company’s audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2018, as filed with the U.S. Securities and Exchange Commission (“SEC”). The Company’s fiscal year ends on July 31 of each calendar year. Each reference below to a fiscal year refers to the fiscal year ending in the calendar year indicated (e.g., fiscal 2019 refers to the fiscal year ending July 31, 2019). |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jan. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2—Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company applied ASC 606 only to those contracts that were not completed as of August 1, 2018. Results for the reporting periods beginning after August 1, 2018 are presented under ASC 606, while prior period results are not adjusted and continue to be reported in accordance with historic accounting under ASC Topic 605. Modified Retrospective Method of Adoption and Cumulative Effect Adjustment The Company adopted ASC 606 as of August 1, 2018, using the modified retrospective method. As this method requires that the cumulative effect of initially applying ASC 606 be recognized at the date of adoption, at August 1, 2018, the Company recorded an $8.6 million reduction to “Deferred revenue”, with an offsetting reduction to “Accumulated deficit”, for the cumulative effect of the adoption. This adjustment related to the change in accounting for breakage primarily from the Company’s Boss Revolution international calling service, traditional calling cards, and international and domestic mobile top-up. A customer’s nonrefundable prepayment gives the customer a right to receive a good or service in the future (and obliges the Company to stand ready to transfer that good or service). However, customers may not exercise all of their contractual rights to receive that good or service. Those unexercised rights are referred to as breakage. Prior to the adoption of ASC 606, the Company recorded breakage revenue when the likelihood of the customer exercising its remaining rights became remote. The Company generally deemed the likelihood remote after 12 or 24 months of no activity (depending on the revenue stream). Per ASC 606, if an entity expects to be entitled to a breakage amount, the entity should recognize the expected breakage amount as revenue in proportion to the pattern of rights exercised by the customer, but only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the breakage is subsequently resolved. The Company determined that $8.6 million included in its opening balance of “Deferred revenue” would have been recognized as breakage revenue under ASC 606 in prior periods, and accordingly, recorded the cumulative effect adjustment as of August 1, 2018. Corrected Cumulative Effect Adjustment ASC 606 changed the accounting for costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers are deferred and amortized consistent with the transfer of the related good or service. In the second quarter of fiscal 2019, the Company determined that the cumulative effect of initially applying ASC 606 to defer these costs related to its net2phone-UCaaS business was $1.3 million. Accordingly, the Company corrected its cumulative effect adjustment as of August 1, 2018 and recorded an increase in “Other current assets” of $0.6 million and an increase in “Other assets” of $0.7 million, with an offsetting reduction to “Accumulated deficit” of $1.3 million. Breakage Revenue: Methods, Inputs and Assumptions The Company’s inputs for recording breakage revenue was its aging of the deferred revenue balance for its Boss Revolution international calling service, traditional calling cards, international and domestic mobile top-up, and other revenue streams with deferred revenue balances. Upon the adoption of ASC 606, the Company’s method changed to an estimate of expected breakage revenue by revenue stream recorded each month, based on inputs and assumptions about usage of the deferred revenue balances. The Company used its historical deferred revenue usage data by revenue stream to calculate the percentage of deferred revenue by month that will become breakage. The historical data indicated that customers utilize a very high percentage of minutes purchased in the first three months. The Company reviews its estimates quarterly based on updated data and adjusts the monthly estimates accordingly. Contracts with Customers The Company earns revenue from contracts with customers, primarily through the provision of retail telecommunications and payment offerings as well as wholesale international long-distance traffic termination. The Company has two reportable business segments, Telecom & Payment Services and net2phone (formerly net2phone-Unified Communications as a Service (“UCaaS”)). The Telecom & Payment Services segment markets and distributes the following communications and payment services: (1) retail communications, which includes international long-distance calling products primarily to foreign-born communities, with its core markets in the United States; (2) wholesale carrier services terminating international long distance calls around the world for Tier 1 fixed line and mobile network operators, as well as other service providers; and (3) payment services, such as international and domestic mobile top-up, domestic bill payment and international money transfer, and National Retail Solutions, the Company’s merchant services offerings through point-of-sale terminals. The net2phone segment is comprised of (1) cloud-based communications services offered to enterprise customers mainly through value-added resellers, service providers, telecom agents and managed service providers, (2) Session Initiation Protocol (“SIP”) trunking, which supports inbound and outbound domestic and international calling from an IP PBX, and (3) cable telephony. The Company’s most significant revenue streams are from its Boss Revolution international calling service, international and domestic mobile top-up, and wholesale termination provided by its Carrier Services business. The Boss Revolution international calling service and international and domestic mobile top-up are sold direct-to-consumers and through distributors and retailers. Boss Revolution international calling service direct-to-consumers Boss Revolution international calling service direct-to-consumers is offered on a pay-as-you-go basis or in unlimited plans. The customer prepays for service in both cases, which results in a contract liability (deferred revenue). The contract term for pay-as-you-go plans is minute-to-minute that includes separate performance obligations for the series of material rights to renew the contract. The performance obligation is satisfied immediately after it arises, and the amount of consideration is known when the obligation is satisfied. Since the Company’s satisfaction of its performance obligation and the customer’s use of the service occur simultaneously, the Company recognizes revenue at the point in time when minutes are utilized, since the customer obtained control and the Company has a present right to payment. For unlimited plans, the Company has a stand ready obligation to provide service over time for an agreed upon term. Unlimited plans include fixed consideration over the term. Plan fees for unlimited plans are generally refundable up to three days after payment if there was no usage. Since the Company’s satisfaction of its performance obligation and the customer’s use of the service occur over the term, the Company recognizes revenue over a period of time as the service is rendered. The Company uses an output method as time elapses because it reflects the pattern by which the Company satisfies its performance obligation through the transfer of service to the customer. The fixed upfront consideration is recognized evenly over the service period, which is generally 24 hours, 7 days, or one month. Boss Revolution international calling service sold through distributors and retailers Boss Revolution international calling service sold through distributors and retailers is the same service as Boss Revolution international calling service direct-to-consumers. The Company sells capacity to international calling minutes to retailers, or to distributors who resell to retailers. The retailer or distributor is the Company’s customer in these transactions. The Company’s sales price to retailers and distributors is less than the end user rate for Boss Revolution international calling service minutes. The customer or the Company may terminate their agreement at any time upon thirty days written notice without penalty. Retailers may sell the Boss Revolution international calling service on a pay-as-you-go basis or in unlimited plans. As described above, for pay-as-you-go, the Company recognizes revenue at the point in time when minutes are utilized, and for unlimited plans, the Company recognizes revenue over a period of time as the service is rendered. Retailers and distributors also receive renewal commissions when certain end users subsequently purchase minutes directly from the Company. Renewal commission payments are accounted for as a reduction of the transaction price over time as the end user uses the service. International and domestic mobile top-up International and domestic mobile top-up is sold direct-to-consumers and through distributors and retailers in the same manner as the Boss Revolution international calling service. The Company does not terminate the minutes in its mobile top-up transactions. The Company’s performance obligation is to recharge (top-up) the airtime balance of a mobile account on behalf of the Company’s customer. The Company has contracts with various mobile operators or aggregators to provide the mobile top-up service. The Company determined that it is the principal in primarily all its mobile top-up transactions as the Company controls the service to top-up a mobile account on behalf of the Company’s customer. However, for a portion of its domestic mobile top-up business where the Company has no customer service responsibilities, no inventory risk, and does not establish the price, the Company determined that, as the Company is not considered to control the arrangement, it acts as an agent of the mobile operators. The Company records gross revenues based on the amount billed to the customer when it is the principal in the arrangement and records revenue net of the associated costs incurred when it acts as an agent in the arrangement. The performance obligation is satisfied, and revenue is recognized when the recharge of the mobile account occurs. Accordingly, transfer of control happens at the point in time that the airtime is recharged, which is when the Company has a right to payment and the customer has accepted the service. Carrier Services Carrier Services are offered to both postpaid and prepaid customers. Postpaid customers are billed in arrears and typically consist of credit-worthy companies such as Tier 1 carriers and mobile network operators. Prepaid customers are typically smaller communications companies and independent call aggregators. There is no performance obligation until the transport and termination of international long-distance calls commences. The initial contract durations range from six months to one year with successive extensions. During the initial term, the contract can only be terminated in certain instances (such as bankruptcy of either party, damage to the other party’s network, fraud, or breach of contract). However, no penalties exist if the agreement is terminated in the initial term. After the initial term has expired, either party may terminate the agreement with notice of 30 days to 60 days depending on the agreement. The term of the contract is essentially minute-to-minute as there is no penalty for an early termination and no obligation to send traffic. Each iteration is a separate optional purchase that is occurring over the contract duration (that is, minute-by-minute). The satisfaction of the performance obligation is occurring at a point in time (as the minutes are transferred) because the provision of the service and the satisfaction of the performance obligation are essentially occurring simultaneously. Revenue is recognized at the point in time upon delivery of the service. The Company has not generally entered into contracts that have retroactive pricing features. Additionally, as the performance obligations are considered minute-by-minute obligations in the original contract, any modification of the original contract that leads to a conclusion that there is a new contract would not result in any adjustment related to the original contract’s consideration. The Company provides discounts to its larger customers based on the expectation of a significant volume of minutes that are consistent with that class of customer in the wholesale carrier market. The discounts do not provide a material right to the customer because the customer receives the same pricing for all usage under the contract. Carrier Service’s contracts may include tiered pricing based on minute volumes. The Company determined that its retroactive tiered pricing should be accounted for as variable consideration because the final transaction price is unknown until the customer completes or fails to complete the specified threshold. Currently, contracts with retroactive tiered pricing are not material. The Company estimates the amount of variable consideration to include in the transaction price only to the extent that it is probable that a subsequent change in the estimate would not result in a significant revenue reversal. The Company enters into Notification of Reciprocal Transmission (“NORT”) transactions, in which the Company commits to purchase a specific number of wholesale carrier minutes to other specific destinations at specified rates, and the counterparty commits to purchase from the Company a specific number of minutes to specific destinations at specified rates. The number of minutes purchased and sold is not necessarily the same. The rates in these reciprocal transactions are generally not at prevailing market rates, and the amounts paid to the counterparty in excess of market rates are reflected as a reduction in revenue received from the customer. The initial terms of NORT contracts generally range from one month to six months. Since the arrangements include the promise of minimum guaranteed amounts of traffic, the performance obligation represents a stand ready obligation to provide the specified number of minutes over the contractual term. Since the Company’s satisfaction of its performance obligation of routing calls to their destination includes a minimum guaranteed amount of traffic, the Company recognizes revenue over a period of time as the service is rendered. The customer simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs. The Company uses an output method as the usage of minutes occur because it reflects the pattern by which the Company satisfies its performance obligation through the transfer of service to the customer. Disaggregated Revenues The Company’s core operations are mostly minute-based, paid-voice communications services, and revenue is primarily recognized at a point in time. The Company’s Telecom & Payment Services’ growth initiatives and net2phone-UCaaS are technology-driven, synergistic businesses that leverage the core assets, and revenue in some cases is recognized over time. The following table shows the Company’s revenues disaggregated by business segment and service offered to customers: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Core Operations: Boss Revolution Calling $ 122,146 $ 131,621 $ 245,659 $ 263,805 Carrier Services 127,896 170,804 270,118 339,634 Mobile Top-Up 64,276 62,131 129,623 123,615 Other 16,603 17,480 31,197 35,509 Growth 7,029 5,029 13,202 9,585 Total Telecom & Payment Services 337,950 387,065 689,799 772,148 net2phone-UCaaS 6,027 3,233 10,832 5,630 net2phone-Platform Services 5,496 5,066 11,158 10,457 Total net2phone 11,523 8,299 21,990 16,087 All Other — 519 — 1,203 Total $ 349,473 $ 395,883 $ 711,789 $ 789,438 The following tables show the Company’s revenues disaggregated by geographic region, which is determined based on selling location: (in thousands) Telecom & Payment Services net2phone All Other Total Three Months Ended January 31, 2019 United States $ 225,706 $ 8,094 $ — $ 233,800 Outside the United States: United Kingdom 49,075 8 — 49,083 Netherlands 48,057 — — 48,057 Other 15,112 3,421 — 18,533 Total outside the United States 112,244 3,429 — 115,673 Total $ 337,950 $ 11,523 $ — $ 349,473 (in thousands) Telecom & Payment Services net2phone All Other Total Three Months Ended January 31, 2018 United States $ 265,072 $ 6,463 $ 519 $ 272,054 Outside the United States: United Kingdom 54,782 — — 54,782 Netherlands 47,152 — — 47,152 Other 20,059 1,836 — 21,895 Total outside the United States 121,993 1,836 — 123,829 Total $ 387,065 $ 8,299 $ 519 $ 395,883 (in thousands) Telecom & Payment Services net2phone All Other Total Six Months Ended January 31, 2019 United States $ 453,596 $ 16,024 $ — $ 469,620 Outside the United States: United Kingdom 103,467 16 — 103,483 Netherlands 98,979 — — 98,979 Other 33,757 5,950 — 39,707 Total outside the United States 236,203 5,966 — 242,169 Total $ 689,799 $ 21,990 $ — $ 711,789 (in thousands) Telecom & Payment Services net2phone All Other Total Six Months Ended January 31, 2018 United States $ 522,269 $ 12,443 $ 1,203 $ 535,915 Outside the United States: United Kingdom 115,313 — — 115,313 Netherlands 96,861 — — 96,861 Other 37,705 3,644 — 41,349 Total outside the United States 249,879 3,644 — 253,523 Total $ 772,148 $ 16,087 $ 1,203 $ 789,438 Remaining Performance Obligations The Company’s revenue is generally recognized in the same period that its performance obligations are satisfied. The Company does not have any significant revenue from performance obligations satisfied or partially satisfied in previous reporting periods, or transaction price to be allocated to performance obligations that are unsatisfied (or partially unsatisfied) at the end of a reporting period. Accounts Receivable and Contract Balances The timing of revenue recognition may differ from the time of billing to our customers. Trade accounts receivable in our consolidated balance sheets represent unconditional rights to consideration. An entity records a contract asset when revenue is recognized in advance of the entity’s right to bill and receive consideration. The Company has not identified any contract assets. Contract liabilities arise when the Company receives consideration or bills its customers prior to providing the goods or services promised in the contract. The primary component of the Company’s contract liability balance is the payments received for its prepaid Boss Revolution international calling service, traditional calling cards, and international and domestic mobile top-up services. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in our consolidated balance sheet as “Deferred revenue”. The following table presents information about the Company’s contract liability balance: Three Months Ended Six Months Ended 2019 2019 (in thousands) Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period $ 16,488 $ 18,624 Deferred Customer Contract Acquisition and Fulfillment Costs ASC 606 changed the accounting for costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers are deferred and amortized consistent with the transfer of the related good or service. The Company’s incremental costs of obtaining a customer contract are sales commissions paid to acquire customers. For Telecom & Payment Services, the Company applies the practical expedient whereby the Company primarily charges these costs to expense when incurred because the amortization period would be one year or less for the asset that would have been recognized from deferring these costs. For net2phone-UCaaS sales, employees and third parties receive commissions on sales to end users. The Company amortizes the deferred costs over the expected life of the contract with the customer when the contract is expected to exceed one year. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | 6 Months Ended |
Jan. 31, 2019 | |
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | Note 3—Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents On August 1, 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230) January 31, July 31, (in thousands) Cash and cash equivalents $ 74,445 $ 68,089 Restricted cash included in other current assets 566 285 Cash and cash equivalents included in current assets held for sale (see Note 4) 5,372 5,892 Restricted cash and cash equivalents included in current assets held for sale (see Note 4) 158,881 128,931 Total cash, cash equivalents, and restricted cash and cash equivalents $ 239,264 $ 203,197 |
IDT Financial Services Holding
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale | 6 Months Ended |
Jan. 31, 2019 | |
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale [Abstract] | |
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale | Note 4—IDT Financial Services Holding Limited Assets and Liabilities Held for Sale On June 22, 2017, the Company’s wholly-owned subsidiary IDT Telecom, Inc. (“IDT Telecom”) entered into a Share Purchase Agreement with JAR Fintech Limited (“JAR Fintech”) and JAR Capital Limited to sell the capital stock of IDT Financial Services Holding Limited, a company incorporated under the laws of Gibraltar and a wholly-owned subsidiary of IDT Telecom (“IDTFS Holding”), to JAR Fintech. IDTFS Holding is the sole shareholder of IDT Financial Services Limited (“IDTFS”), a Gibraltar-based bank and e-money issuer, providing prepaid card solutions across the European Economic Area. The sale was subject to regulatory approval and other conditions. On October 25, 2018, JAR Fintech notified the Company that it considers the agreement terminated by the effluxion of time. All parties have indicated that they remain interested in consummating a transaction regarding the sale of IDTFS Holding, provided that they are waiting until there is greater certainty around the effects of Brexit on IDTFS Holding, to negotiate certain changes to the terms of the sale. The proposed sale of IDTFS Holding did not meet the criteria to be reported as a discontinued operation and accordingly, its results of operations and cash flows have not been reclassified. The IDTFS Holding assets and liabilities held for sale included the following: January 31, July 31, (in thousands) Current assets held for sale: Cash and cash equivalents $ 5,372 $ 5,892 Restricted cash and cash equivalents 158,881 128,931 Trade accounts receivable, net of allowance for doubtful accounts of $1,715 and $2,192 at January 31, 2019 and July 31, 2018, respectively 2,110 1,265 Prepaid expenses 487 1,016 Other current assets 233 168 Total current assets held for sale $ 167,083 $ 137,272 Noncurrent assets held for sale: Property, plant and equipment, net $ 4 $ 12 Other intangibles, net 176 190 Other assets 5,782 5,504 Total noncurrent assets held for sale $ 5,962 $ 5,706 Current liabilities held for sale: Trade accounts payable $ 631 $ 776 Accrued expenses 279 407 Deferred revenue 58 12 Customer deposits 158,272 127,571 Other current liabilities 8 4 Total current liabilities held for sale $ 159,248 $ 128,770 Noncurrent liabilities held for sale: Other liabilities $ 433 $ 542 Total noncurrent liabilities held for sale $ 433 $ 542 IDTFS Holding is included in the Telecom & Payment Services segment. IDTFS Holding’s loss before income taxes and loss before income taxes attributable to the Company, which is included in the accompanying consolidated statements of operations, were as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Loss before income taxes $ (437 ) $ (559 ) $ (470 ) $ (1,009 ) Loss before income taxes attributable to IDT Corporation $ (437 ) $ (559 ) $ (470 ) $ (1,009 ) |
Acquisition of Versature Corp
Acquisition of Versature Corp | 6 Months Ended |
Jan. 31, 2019 | |
Acquisition of Versature Corp [Abstract] | |
Acquisition of Versature Corp. | Note 5—Acquisition of Versature Corp. On September 14, 2018, the Company acquired 100% of the outstanding shares of Versature Corp., a software as a service (“SaaS”) business communications solutions and hosted voice over Internet Protocol (“VoIP”) provider serving the Canadian market, for cash of $5.9 million. The acquisition expands the Company’s UCaaS business into Canada. Versature’s operating results from the date of acquisition, which were not significant, are included in the Company’s consolidated financial statements. The impact of the acquisition’s purchase price allocations on the Company’s consolidated balance sheet and the acquisition date fair value of the total consideration transferred were as follows (in thousands): Trade accounts receivable $ 370 Prepaid expenses 65 Property, plant and equipment 1,826 Non-compete agreement 600 Customer relationships 2,930 Tradename 490 Other assets 486 Trade accounts payable (81 ) Accrued expenses (523 ) Other liabilities (710 ) Net assets excluding cash acquired $ 5,453 Supplemental information: Cash paid $ 5,870 Cash acquired (417 ) Total consideration, net of cash acquired $ 5,453 The following table presents unaudited pro forma information of the Company as if the acquisition occurred on August 1, 2017: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Revenues $ 349,473 $ 397,362 $ 712,673 $ 792,284 Net income (loss) $ 489 $ 1,641 $ (867 ) $ (319 ) |
Rafael Holdings, Inc. Spin-Off
Rafael Holdings, Inc. Spin-Off | 6 Months Ended |
Jan. 31, 2019 | |
Rafael Holdings, Inc. Spin-Off [Member] | |
Rafael Holdings, Inc. Spin-Off | Note 6—Rafael Holdings, Inc. Spin-Off On March 26, 2018, the Company completed a pro rata distribution of the common stock that the Company held in the Company’s subsidiary, Rafael Holdings, Inc. (“Rafael”), to the Company’s stockholders of record as of the close of business on March 13, 2018 (the “Rafael Spin-Off”). The disposition of Rafael did not meet the criteria to be reported as a discontinued operation and accordingly, Rafael’s assets, liabilities, results of operations and cash flows have not been reclassified. At the time of the Rafael Spin-Off, Rafael owned the commercial real estate assets and interests in two clinical stage pharmaceutical companies that were previously held by the Company. The commercial real estate holdings consisted of the Company’s headquarters building and its associated public garage in Newark, New Jersey, an office/data center building in Piscataway, New Jersey and a portion of a building in Israel that hosts offices for the Company and certain affiliates. The pharmaceutical holdings included debt interests and warrants in Rafael Pharmaceuticals, Inc., which is a clinical stage, oncology-focused pharmaceutical company committed to the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells, and a majority equity interest in Lipomedix Pharmaceuticals Ltd., a pharmaceutical development company based in Israel. Rafael’s loss before income taxes and loss before income taxes attributable to the Company, which was included in the accompanying consolidated statements of operations, were as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Loss before income taxes $ — $ (680 ) $ — $ (1,220 ) Loss before income taxes attributable to IDT Corporation $ — $ (548 ) $ — $ (1,046 ) |
Debt Securities
Debt Securities | 6 Months Ended |
Jan. 31, 2019 | |
Debt Securities [Abstract] | |
Debt Securities | Note 7—Debt Securities The following is a summary of marketable debt securities: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Available-for-sale securities: January 31, 2019: U.S. Treasury notes $ 749 $ — $ — $ 749 Municipal bonds 302 — — 302 Total $ 1,051 $ — $ — $ 1,051 July 31, 2018: Certificates of deposit* $ 3,032 $ — $ — $ 3,032 U.S. Treasury notes 1,693 — (1 ) 1,692 Municipal bonds 888 — — 888 Total $ 5,613 $ — $ (1 ) $ 5,612 * Each of the Company’s certificates of deposit had a CUSIP, was purchased in the secondary market through a broker, and may be sold in the secondary market. Equity securities with a fair value of $0.4 million at July 31, 2018 were reclassified to “Other current assets” to conform to the current year presentation (see Note 8). Proceeds from maturities and sales of available-for-sale securities were $1.2 million and $12.1 million in the three months ended January 31, 2019 and 2018, respectively, and $4.6 million and $31.6 million in the six months ended January 31, 2019 and 2018, respectively. There were no gross realized gains that were included in earnings as a result of sales in the three and six months ended January 31, 2019 and 2018. There were no gross realized losses that were included in earnings as a result of sales in the three and six months ended January 31, 2019. The gross realized losses that were included in earnings as a result of sales were $16,000 and $9,000 in the three and six months ended January 31, 2018, respectively. The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of marketable securities. The contractual maturities of the Company’s available-for-sale debt securities at January 31, 2019 were as follows: Fair Value (in thousands) Within one year $ 1,051 After one year through five years — After five years through ten years — After ten years — Total $ 1,051 The following available-for-sale debt securities were in an unrealized loss position for which other-than-temporary impairments have not been recognized: Unrealized Losses Fair Value (in thousands) January 31, 2019: Total $ — $ — July 31, 2018: U.S. Treasury notes $ 1 $ 1,692 At January 31, 2019 and July 31, 2018, there were no securities in a continuous unrealized loss position for 12 months or longer. |
Equity Investments
Equity Investments | 6 Months Ended |
Jan. 31, 2019 | |
Equity Investments [Abstract] | |
Equity Investments | Note 8—Equity Investments On August 1, 2018, the Company adopted ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10) At January 31, 2019 and July 31, 2018, the Company owned 42,282 shares of Zedge, Inc. Class B common stock that had a fair value of $0.1 million. In addition, at January 31, 2019 and July 31, 2018, the Company owned 26,587 and 25,803 shares, respectively, of Rafael Class B common stock that had a fair value of $0.4 million and $0.2 million, respectively. The aggregate fair value of these shares was included in “Other current assets” in the accompanying consolidated balance sheets. The changes in the carrying value of the Company’s equity investments for which the Company elected the measurement alternative was as follows: Three Months Ended Six Months Ended (in thousands) Balance, beginning of period $ 3,118 $ 1,883 Adoption of change in accounting for equity investments — 1,213 Adjusted balance, beginning of period 3,118 3,096 Adjustment for observable transactions involving a similar investment from the same issuer (71 ) (49 ) Redemptions (2 ) (2 ) Impairments — — Balance, end of period $ 3,045 $ 3,045 In the three and six months ended January 31, 2019, the Company decreased the carrying value of its 1,830 shares of Visa Series C Preferred by $71,000 and $49,000, respectively, based on the fair value of Visa Class A common stock and a discount for lack of current convertibility. Each share of Visa Series C Preferred is convertible into 13.886 shares of Visa Class A common stock at Visa’s option starting in June 2020 and will be convertible at the holder’s option beginning in June 2028. Unrealized gains and losses for all equity investments included the following: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Net gains recognized during the period on equity investments $ 128 $ 3 $ 81 $ 23 Less: net gains and losses recognized during the period on equity investments redeemed during the period — — — — Unrealized gains recognized during the period on equity investments still held at the reporting date $ 128 $ 3 $ 81 $ 23 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jan. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 9—Fair Value Measurements In the first quarter of fiscal 2019, the Company adopted ASU No. 2018-13, Fair Value Measurement (Topic 820) The following tables present the balance of assets measured at fair value on a recurring basis: Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) January 31, 2019 Debt securities $ 749 $ 302 $ — $ 1,051 Equity securities included in other current assets 497 — — 497 Equity securities included in equity investments — — 2,745 2,745 Total $ 1,246 $ 302 $ 2,745 $ 4,293 July 31, 2018 Debt securities $ 1,692 $ 3,920 $ — $ 5,612 Equity securities included in other current assets 360 — — 360 Total $ 2,052 $ 3,920 $ — $ 5,972 (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market At January 31, 2019 and July 31, 2018, the Company did not have any liabilities measured at fair value on a recurring basis. The following table summarizes the change in the balance of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3). There were no liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) in the three and six months ended January 31, 2019 and 2018. Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Balance, beginning of period $ 2,816 $ 6,300 $ — $ 6,300 Transfer into Level 3 from adoption of change in accounting for equity investments — — 2,794 — Total losses recognized in “Other income (expense), net” (71 ) — (49 ) — Balance, end of period $ 2,745 $ 6,300 $ 2,745 $ 6,300 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ (71 ) $ — $ (49 ) $ — At January 31, 2019 and July 31, 2018, the Company had $4.8 million in investments in hedge funds, which were included in “Equity investments” in the accompanying consolidated balance sheets. The Company’s investments in hedge funds were accounted for using the equity method, therefore they were not measured at fair value. Fair Value of Other Financial Instruments The estimated fair value of the Company’s other financial instruments was determined using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting these data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange. Cash and cash equivalents, restricted cash and cash equivalents, other current assets, customer deposits and other current liabilities. Other assets and other liabilities. |
Equity
Equity | 6 Months Ended |
Jan. 31, 2019 | |
Equity [Abstract] | |
Equity | Note 10—Equity Sale of Class B Common Stock to Howard S. Jonas On December 21, 2018, the Company sold 2,546,689 shares of its Class B common stock that were held in treasury to Howard S. Jonas, the Chairman of the Board of the Company, for aggregate consideration of $14.8 million. The price per share of $5.89 was equal to the closing price of the Company’s Class B common stock on April 16, 2018, the last closing price before approval of the sale by the Company’s Board of Directors and its Corporate Governance Committee. On May 31, 2018, Mr. Jonas paid $1.5 million of the purchase price, and he paid the balance of the purchase price on December 21, 2018 after approval of the sale by the Company’s stockholders at the 2018 annual meeting of stockholders. The purchase price was reduced by approximately $0.2 million, which was the amount of dividends paid on 2,546,689 shares of the Company’s Class B common stock whose record date was between April 16, 2018 and the issuance of the shares. Stock Repurchases The Company has an existing stock repurchase program authorized by its Board of Directors for the repurchase of up to an aggregate of 8.0 million shares of the Company’s Class B common stock. In the six months ended January 31, 2019, the Company repurchased 729,110 shares of Class B common stock for an aggregate purchase price of $3.9 million. There were no repurchases under the program in the six months ended January 31, 2018. At January 31, 2019, 6.9 million shares remained available for repurchase under the stock repurchase program. In the six months ended January 31, 2019 and 2018, the Company paid $16,000 and $0.1 million, respectively, to repurchase 2,036 shares and 5,170 shares, respectively, of Class B common stock that were tendered by employees of the Company to satisfy the employees’ tax withholding obligations in connection with the lapsing of restrictions on awards of restricted stock. Such shares were repurchased by the Company based on their fair market value on the trading day immediately prior to the vesting date. 2015 Stock Option and Incentive Plan On December 13, 2018, the Company’s stockholders approved an amendment to the Company’s 2015 Stock Option and Incentive Plan to increase the number of shares of the Company’s Class B common stock available for the grant of awards thereunder by an additional 0.1 million shares. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jan. 31, 2019 | |
Earnings (Loss) Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 11—Earnings (Loss) Per Share Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive. The weighted-average number of shares used in the calculation of basic and diluted earnings (loss) per share attributable to the Company’s common stockholders consists of the following: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Basic weighted-average number of shares 24,816 24,643 24,323 24,635 Effect of dilutive securities: Stock options — 10 — — Non-vested restricted Class B common stock 5 71 — — Diluted weighted-average number of shares 24,821 24,724 24,323 24,635 The following shares were excluded from the diluted earnings per share computation: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Stock options 1,243 1,160 1,243 1,273 Non-vested restricted Class B common stock — — 20 191 Shares excluded from the calculation of diluted earnings per share 1,243 1,160 1,263 1,464 In the three months ended January 31, 2019 and 2018, stock options with an exercise price that was greater than the average market price of the Company’s stock during the period were excluded from the diluted earnings per share computation. In the six months ended January 31, 2019 and 2018, the diluted loss per share computation equals basic loss per share because the Company had a net loss and the impact of the assumed exercise of stock options and the vesting of restricted stock would have been anti-dilutive. |
Revolving Credit Facility
Revolving Credit Facility | 6 Months Ended |
Jan. 31, 2019 | |
Revolving Credit Facility [Abstract] | |
Revolving Credit Facility | Note 12—Revolving Credit Facility As of October 31, 2018, IDT Telecom entered into a credit agreement with TD Bank, N.A. for a line of credit facility for up to a maximum principal amount of $25.0 million. IDT Telecom may use the proceeds to finance working capital requirements, acquisitions and for other general corporate purposes. The line of credit facility is secured by primarily all of IDT Telecom’s assets. The principal outstanding bears interest per annum at the LIBOR rate adjusted by the Regulation D maximum reserve requirement plus 125 basis points. Interest is payable monthly, and all outstanding principal and any accrued and unpaid interest is due on the maturity date of July 15, 2019. At January 31, 2019, there was no amount outstanding under the facility. IDT Telecom pays a quarterly unused commitment fee of 0.3% per annum on the average daily balance of the unused portion of the $25.0 million commitment. IDT Telecom is required to comply with various affirmative and negative covenants as well as maintain certain financial targets and ratios during the term of the facility, including IDT Telecom may not pay any dividend on its capital stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jan. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 13—Accumulated Other Comprehensive Loss The accumulated balances for each classification of other comprehensive loss were as follows: Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss (in thousands) Balance, July 31, 2018 $ (34 ) $ (4,938 ) $ (4,972 ) Adjustment from the adoption of change in accounting for equity investments (see Note 8) 33 — 33 Adjusted balance, August 1, 2018 (1 ) (4,938 ) (4,939 ) Other comprehensive income attributable to IDT Corporation 1 483 484 Balance, January 31, 2019 $ — $ (4,455 ) $ (4,455 ) |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jan. 31, 2019 | |
Business Segment Information [Abstract] | |
Business Segment Information | Note 14—Business Segment Information The Company has two reportable business segments, Telecom & Payment Services and net2phone. The Company’s reportable segments are distinguished by types of service, customers and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker. The accounting policies of the segments are the same as the accounting policies of the Company as a whole. The Company evaluates the performance of its business segments based primarily on income (loss) from operations. In fiscal 2019, the Company modified the way it reports its business verticals within its Telecom & Payment Services and net2phone segments to align more closely with its business strategy and operational structure. The modification to the business verticals did not change the reportable business segments. The Telecom & Payment Services segment provides retail telecommunications and payment offerings as well as wholesale international long-distance traffic termination. The net2phone segment is comprised of (1) cloud-based communications services offered to enterprise customers mainly through value-added resellers, service providers, telecom agents and managed service providers, (2) SIP trunking, which supports inbound and outbound domestic and international calling from an IP PBX, and (3) cable telephony. Depreciation and amortization are allocated to Telecom & Payment Services and net2phone because the related assets are not tracked separately by segment. There are no other significant asymmetrical allocations to segments. Operating segments not reportable individually are included in All Other, which included the real estate holdings and other investments that were included in the Rafael Spin-Off. Corporate costs include compensation, consulting fees, treasury and accounts payable, tax and accounting services, human resources and payroll, corporate purchasing, corporate governance including Board of Directors’ fees, internal and external audit, investor relations, corporate insurance, corporate legal, business development, charitable contributions, travel and other corporate-related general and administrative expenses. Corporate does not generate any revenues, nor does it incur any direct cost of revenues. Operating results for the business segments of the Company are as follows: (in thousands) Telecom net2phone All Other Corporate Total Three Months Ended January 31, 2019 Revenues $ 337,950 $ 11,523 $ — $ — $ 349,473 Income (loss) from operations 6,191 (1,897 ) — (2,751 ) 1,543 Other operating income (expense), net 215 25 — (330 ) (90 ) Three Months Ended January 31, 2018 Revenues $ 387,065 $ 8,299 $ 519 $ — $ 395,883 Income (loss) from operations 4,450 (790 ) (915 ) (3,225 ) (480 ) Severance 195 — — — 195 Other operating expense — — — (846 ) (846 ) Six Months Ended January 31, 2019 Revenues $ 689,799 $ 21,990 $ — $ — $ 711,789 Income (loss) from operations 11,460 (3,397 ) — (5,238 ) 2,825 Other operating income (expense), net 215 25 — (525 ) (285 ) Six Months Ended January 31, 2018 Revenues $ 772,148 $ 16,087 $ 1,203 $ — $ 789,438 Income (loss) from operations 8,873 (1,464 ) (1,462 ) (6,344 ) (397 ) Severance 605 — — 30 635 Other operating expense — — — (1,625 ) (1,625 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 15—Commitments and Contingencies Legal Proceedings On May 21, 2018, Erik Dennis filed a putative class action against IDT Telecom and the Company in the U.S. District Court for the Northern District of Georgia alleging violations of Do Not Call Regulations promulgated by the U.S. Federal Trade Commission. The Company is evaluating the claim, and at this stage, is unable to estimate its potential liability, if any. On August 13, 2018, IDT Telecom and the Company filed a motion to dismiss or in the alternative to strike class allegations. The plaintiff opposed the motion. The motion to dismiss was denied. IDT Telecom and the Company intend to vigorously defend this matter. On May 2, 2018, Jean Carlos Sanchez filed a putative class action against IDT Telecom in the U.S. District Court for the Northern District of Illinois alleging that the Company sent unauthorized marketing messages to cellphones in violation of the Telephone Consumer Protection Act of 1991. On July 26, 2018, the parties filed a stipulation of dismissal. The Company is evaluating the claim, and at this stage, is unable to estimate its potential liability, if any. The Company intends to vigorously defend this matter. On April 24, 2018, Sprint Communications Company L.P. filed a patent infringement claim against the Company and certain of its affiliates in the U.S. District Court for the District of Delaware alleging infringement of U.S. Patent Nos. 6,298,064; 6,330,224; 6,343,084; 6,452,932; 6,463,052; 6,473,429; 6,563,918; 6,633,561; 6,697,340; 6,999,463; 7,286,561; 7,324,534; 7,327,728; 7,505,454; and 7,693,131. Plaintiff was seeking damages and injunctive relief. On June 28, 2018, Sprint dismissed the complaint without prejudice. The Company is evaluating the underlying claim, and at this stage, is unable to estimate its potential liability, if any. The Company intends to vigorously defend any claim of infringement of the listed patents. On July 31, 2013, the Company completed a pro rata distribution of the common stock of the Company’s subsidiary Straight Path Communications Inc. (“Straight Path”) to the Company’s stockholders of record as of the close of business on July 25, 2013 (the “Straight Path Spin-Off”). On July 5, 2017, plaintiff JDS1, LLC, on behalf of itself and all other similarly situated stockholders of Straight Path, and derivatively on behalf of Straight Path as nominal defendant, filed a putative class action and derivative complaint in the Court of Chancery of the State of Delaware against the Company, The Patrick Henry Trust (a trust formed by Howard S. Jonas that held record and beneficial ownership of certain shares of Straight Path he formerly held), Howard S. Jonas, and each of Straight Path’s directors. The complaint alleges that the Company aided and abetted Straight Path Chairman of the Board and Chief Executive Officer Davidi Jonas, and Howard S. Jonas in his capacity as controlling stockholder of Straight Path, in breaching their fiduciary duties to Straight Path in connection with the settlement of claims between Straight Path and the Company related to potential indemnification claims concerning Straight Path’s obligations under the Consent Decree it entered into with the Federal Communications Commission (“FCC”), as well as the sale of Straight Path’s subsidiary Straight Path IP Group, Inc. to the Company in connection with that settlement. That action was consolidated with a similar action that was initiated by The Arbitrage Fund. The Plaintiffs are seeking, among other things, (i) a declaration that the action may be maintained as a class action or in the alternative, that demand on the Straight Path Board is excused; (ii) that the term sheet is invalid; (iii) awarding damages for the unfair price stockholders received in the merger between Straight Path and Verizon Communications Inc. for their shares of Straight Path’s Class B common stock; and (iv) ordering Howard S. Jonas, Davidi Jonas, and the Company to disgorge any profits for the benefit of the class Plaintiffs. On August 28, 2017, the Plaintiffs filed an amended complaint. On September 24, 2017, the Company filed a motion to dismiss the amended complaint. Following closing of the transaction, the Delaware Chancery Court denied the motion to dismiss. On February 22, 2019, the Delaware Supreme Court affirmed the denial of the motion to dismiss. The Company intends to vigorously defend this matter. In the three months ended January 31, 2019 and 2018, the Company incurred legal fees of $0.3 million and $0.2 million, respectively, and in the six months ended January 31, 2019 and 2018, the Company incurred legal fees of $0.5 million and $1.0 million, respectively, related to this putative class action, which is included in “Other operating expense, net” in the accompanying consolidated statements of operations. At this stage, the Company is unable to estimate its potential liability, if any. On May 5, 2004, the Company filed a complaint in the Supreme Court of the State of New York, County of New York, seeking injunctive relief and damages against Tyco Group, S.A.R.L., Tyco Telecommunications (US) Inc. (f/k/a TyCom (US) Inc.), Tyco International, Ltd., Tyco International (US) Inc., and TyCom Ltd. (collectively “Tyco”). The Company alleged that Tyco breached a settlement agreement that it had entered into with the Company to resolve certain disputes and civil actions among the parties. The Company alleged that Tyco did not provide the Company, as required under the settlement agreement, free of charge and for the Company’s exclusive use, a 15-year indefeasible right to use four Wavelengths in Ring Configuration (as defined in the settlement agreement) on a global undersea fiber optic network that Tyco was deploying at that time. After extensive proceedings, including several decisions and appeals, the New York Court of Appeals affirmed a lower court decision to dismiss the Company’s claim and denied the Company’s motion for re-argument of that decision. On June 23, 2015, the Company filed a new summons and complaint against Tyco in the Supreme Court of the State of New York, County of New York alleging that Tyco breached the settlement agreement. In September 2015, Tyco filed a motion to dismiss the complaint, which the Company opposed. Oral argument was held on March 9, 2016. On October 17, 2016, the judge granted Tyco’s motion and dismissed the complaint. In August 2017, the Company filed an appeal, which Tyco opposed. On November 22, 2017, oral argument was held on the appeal. On December 21, 2017, the Company’s appeal was denied. On January 22, 2018, the Company filed a motion for leave to appeal to the New York Court of Appeals. On February 6, 2018, Tyco opposed the Company’s motion. The First Department denied the Company’s motion for leave to appeal to the New York Court of Appeals. On May 3, 2018, the Company filed a motion for leave directly to the Court of Appeals. On June 28, 2018, the motion was denied. In addition to the foregoing, the Company is subject to other legal proceedings that have arisen in the ordinary course of business and have not been finally adjudicated. Although there can be no assurance in this regard, the Company believes that none of the other legal proceedings to which the Company is a party will have a material adverse effect on the Company’s results of operations, cash flows or financial condition. Regulatory Fees Audit The Company’s 2017 FCC Form 499-A, which reports its calendar year 2016 revenue, related to payments due to the FCC, is currently under audit by the Internal Audit Division of the Universal Service Administrative Company. At January 31, 2019 and July 31, 2018, the Company’s accrued expenses included $45.0 million and $43.9 million, respectively, for these regulatory fees for the year covered by the audit, as well as prior and subsequent years. Purchase Commitments The Company had purchase commitments of $22.9 million at January 31, 2019, including the aggregate commitment of $20.1 million under the Reciprocal Services Agreement described below. Reciprocal Services Agreement In August 2017, the Company entered into a Reciprocal Services Agreement with a telecom operator in Central America for a full range of services, including, but not limited to, termination of inbound and outbound international long-distance voice calls. The Company has committed to pay such telecom operator monthly committed amounts during the term of the agreement. In addition, under certain limited circumstances, the parties may renegotiate the amount of the monthly payments. In the event the parties do not agree on re-pricing terms after good faith negotiations, then either party has the right to terminate the agreement. Pursuant to the agreement, the Company deposited $9.2 million into an escrow account as security for the benefit of the telecom operator, which is included in “Other current assets” in the accompanying consolidated balance sheet based on the terms and conditions of the agreement. Performance Bonds The Company has performance bonds issued through third parties for the benefit of various states in order to comply with the states’ financial requirements for money remittance licenses and telecommunications resellers. At January 31, 2019, the Company had aggregate performance bonds of $17.1 million outstanding. Substantially Restricted Cash and Cash Equivalents The Company treats unrestricted cash and cash equivalents held by IDT Payment Services, which provides the Company’s international money transfer services in the United States, as substantially restricted and unavailable for other purposes. At January 31, 2019 and July 31, 2018, “Cash and cash equivalents” in the Company’s consolidated balance sheets included an aggregate of $13.9 million and $10.7 million, respectively, held by IDT Payment Services that was unavailable for other purposes. Indemnification Claims Two customers of the Company have sought indemnification from the Company related to patent infringement claims brought against those customers by a third party. FCC Investigation of Straight Path Communications Inc. On September 20, 2016, the Company received a letter of inquiry from the Enforcement Bureau of the FCC requesting certain information and materials related to an investigation of potential violations by Straight Path Spectrum LLC (formerly a subsidiary of the Company and currently a subsidiary of Straight Path) in connection with licenses to operate on the 28 GHz and 39 GHz bands of the Fixed Microwave Services. The Company has cooperated with the FCC in this matter and has responded to the letter of inquiry. If the FCC were to pursue separate action against the Company, the FCC could seek to fine or impose regulatory penalties or civil liability on the Company related to activities during the period of ownership by the Company. |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Jan. 31, 2019 | |
Other Income (Expense), Net [Abstract] | |
Other Income (Expense), Net | Note 16—Other Income (Expense), Net Other income (expense), net consists of the following: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Foreign currency transaction gains (losses) $ 370 $ 169 $ (835 ) $ (559 ) Loss on sale of debt securities — (16 ) — (9 ) Gain on investments 128 179 81 59 Other (2 ) 38 (99 ) 53 Total other income (expense), net $ 496 $ 370 $ (853 ) $ (456 ) |
The Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act | 6 Months Ended |
Jan. 31, 2019 | |
The Tax Cuts and Jobs Act [Abstract] | |
The Tax Cuts and Jobs Act | Note 17—The Tax Cuts and Jobs Act On December 22, 2017, the U.S. government enacted “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018”, which is commonly referred to as “The Tax Cuts and Jobs Act” (the “Tax Act”). The Tax Act reduces the U.S. federal statutory corporate tax rate from 35.0% to 21.0% effective January 1, 2018, requires companies to pay a one-time repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred (“transition tax”), and makes other changes to the U.S. income tax code. Due to the Company’s July 31 fiscal year-end, the lower corporate income tax rate is phased in, resulting in a blended U.S. federal statutory tax rate of approximately 26.9% for the Company’s fiscal 2018, and 21.0% for the Company’s fiscal years thereafter. The Company has completed its accounting for the income tax effects of the Tax Act. The transition tax is based on total post-1986 earnings and profits which were previously deferred from U.S. income taxes. In fiscal 2018, the Company estimated that it will utilize $12 million of federal net operating loss carryforwards to offset the transition tax that it expects it will incur. In fiscal 2019, the Company adjusted this amount to $11 million of federal net operating loss carryforwards usage. These net operating loss carryforwards have a full valuation allowance and as such there is no impact on the Company’s results of operations. The global intangible low taxed income (“GILTI”) and base erosion anti-abuse tax (“BEAT”) became effective on August 1, 2018. The Company reviewed the proposed guidance that was issued by the Internal Revenue Service in September 2018. As a result of its fully reserved net operating losses in the United States, the Company concluded there will be no material impact on its tax provision as a result of GILTI. The Company currently believes there will be no impact from the BEAT. The Company anticipates that its assumptions may change as a result of future guidance and interpretation from the Internal Revenue Service, the SEC, the FASB, and various other taxing jurisdictions, and any additional adjustments will be made at that time. |
Recently Issued Accounting Stan
Recently Issued Accounting Standard Not Yet Adopted | 6 Months Ended |
Jan. 31, 2019 | |
Recently Issued Accounting Standard Not Yet Adopted [Abstract] | |
Recently Issued Accounting Standard Not Yet Adopted | Note 18—Recently Issued Accounting Standard Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In June 2016, the FASB issued an ASU that changes the impairment model for most financial assets and certain other instruments. For receivables, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except the losses will be recognized as allowances instead of reductions in the amortized cost of the securities. In addition, an entity will have to disclose significantly more information about allowances, credit quality indicators and past due securities. The new provisions will be applied as a cumulative-effect adjustment to retained earnings. The Company will adopt the new standard on August 1, 2020. The Company is evaluating the impact that the new standard will have on its consolidated financial statements. In August 2017, the FASB issued an ASU intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the ASU includes certain targeted improvements to simplify the application of hedge accounting guidance in U.S. GAAP. The amendments in this ASU are effective for the Company on August 1, 2019. Early application is permitted. Entities will apply the amendments to cash flow and net investment hedge relationships that exist on the date of adoption using a modified retrospective approach. The presentation and disclosure requirements will be applied prospectively. The Company is evaluating the impact that this ASU will have on its consolidated financial statements. In June 2018, the FASB issued an ASU to simplify several aspects of the accounting for nonemployee share-based payment transactions by expanding the scope of Topic 718, Compensation—Stock Compensation Revenue from Contracts with Customers |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jan. 31, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of revenues disaggregated by business segment and service offered to customers | Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Core Operations: Boss Revolution Calling $ 122,146 $ 131,621 $ 245,659 $ 263,805 Carrier Services 127,896 170,804 270,118 339,634 Mobile Top-Up 64,276 62,131 129,623 123,615 Other 16,603 17,480 31,197 35,509 Growth 7,029 5,029 13,202 9,585 Total Telecom & Payment Services 337,950 387,065 689,799 772,148 net2phone-UCaaS 6,027 3,233 10,832 5,630 net2phone-Platform Services 5,496 5,066 11,158 10,457 Total net2phone 11,523 8,299 21,990 16,087 All Other — 519 — 1,203 Total $ 349,473 $ 395,883 $ 711,789 $ 789,438 |
Schedule of revenues disaggregated by geographic region | (in thousands) Telecom & Payment Services net2phone All Other Total Three Months Ended January 31, 2019 United States $ 225,706 $ 8,094 $ — $ 233,800 Outside the United States: United Kingdom 49,075 8 — 49,083 Netherlands 48,057 — — 48,057 Other 15,112 3,421 — 18,533 Total outside the United States 112,244 3,429 — 115,673 Total $ 337,950 $ 11,523 $ — $ 349,473 (in thousands) Telecom & Payment Services net2phone All Other Total Three Months Ended January 31, 2018 United States $ 265,072 $ 6,463 $ 519 $ 272,054 Outside the United States: United Kingdom 54,782 — — 54,782 Netherlands 47,152 — — 47,152 Other 20,059 1,836 — 21,895 Total outside the United States 121,993 1,836 — 123,829 Total $ 387,065 $ 8,299 $ 519 $ 395,883 (in thousands) Telecom & Payment Services net2phone All Other Total Six Months Ended January 31, 2019 United States $ 453,596 $ 16,024 $ — $ 469,620 Outside the United States: United Kingdom 103,467 16 — 103,483 Netherlands 98,979 — — 98,979 Other 33,757 5,950 — 39,707 Total outside the United States 236,203 5,966 — 242,169 Total $ 689,799 $ 21,990 $ — $ 711,789 (in thousands) Telecom & Payment Services net2phone All Other Total Six Months Ended January 31, 2018 United States $ 522,269 $ 12,443 $ 1,203 $ 535,915 Outside the United States: United Kingdom 115,313 — — 115,313 Netherlands 96,861 — — 96,861 Other 37,705 3,644 — 41,349 Total outside the United States 249,879 3,644 — 253,523 Total $ 772,148 $ 16,087 $ 1,203 $ 789,438 |
Schedule of information about contract liability balance | Three Months Ended Six Months Ended 2019 2019 (in thousands) Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period $ 16,488 $ 18,624 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jan. 31, 2019 | |
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents [Abstract] | |
Schedule of cash, cash equivalents, and restricted cash and cash equivalents | January 31, July 31, (in thousands) Cash and cash equivalents $ 74,445 $ 68,089 Restricted cash included in other current assets 566 285 Cash and cash equivalents included in current assets held for sale (see Note 4) 5,372 5,892 Restricted cash and cash equivalents included in current assets held for sale (see Note 4) 158,881 128,931 Total cash, cash equivalents, and restricted cash and cash equivalents $ 239,264 $ 203,197 |
IDT Financial Services Holdin_2
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale (Tables) - IDTFS Holding [Member] | 6 Months Ended |
Jan. 31, 2019 | |
Assets and Liabilities Held for Sale | |
Schedule of assets and liabilities held for sale | January 31, July 31, (in thousands) Current assets held for sale: Cash and cash equivalents $ 5,372 $ 5,892 Restricted cash and cash equivalents 158,881 128,931 Trade accounts receivable, net of allowance for doubtful accounts of $1,715 and $2,192 at January 31, 2019 and July 31, 2018, respectively 2,110 1,265 Prepaid expenses 487 1,016 Other current assets 233 168 Total current assets held for sale $ 167,083 $ 137,272 Noncurrent assets held for sale: Property, plant and equipment, net $ 4 $ 12 Other intangibles, net 176 190 Other assets 5,782 5,504 Total noncurrent assets held for sale $ 5,962 $ 5,706 Current liabilities held for sale: Trade accounts payable $ 631 $ 776 Accrued expenses 279 407 Deferred revenue 58 12 Customer deposits 158,272 127,571 Other current liabilities 8 4 Total current liabilities held for sale $ 159,248 $ 128,770 Noncurrent liabilities held for sale: Other liabilities $ 433 $ 542 Total noncurrent liabilities held for sale $ 433 $ 542 |
Schedule of consolidated statements of operations | Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Loss before income taxes $ (437 ) $ (559 ) $ (470 ) $ (1,009 ) Loss before income taxes attributable to IDT Corporation $ (437 ) $ (559 ) $ (470 ) $ (1,009 ) |
Acquisition of Versature Corp (
Acquisition of Versature Corp (Tables) | 6 Months Ended |
Jan. 31, 2019 | |
Acquisition of Versature Corp [Abstract] | |
Schedule of consolidated balance sheet and acquisition date fair value of total consideration transferred | Trade accounts receivable $ 370 Prepaid expenses 65 Property, plant and equipment 1,826 Non-compete agreement 600 Customer relationships 2,930 Tradename 490 Other assets 486 Trade accounts payable (81 ) Accrued expenses (523 ) Other liabilities (710 ) Net assets excluding cash acquired $ 5,453 Supplemental information: Cash paid $ 5,870 Cash acquired (417 ) Total consideration, net of cash acquired $ 5,453 |
Schedule of business acquisition pro forma information | Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Revenues $ 349,473 $ 397,362 $ 712,673 $ 792,284 Net income (loss) $ 489 $ 1,641 $ (867 ) $ (319 ) |
Rafael Holdings, Inc. Spin-Off
Rafael Holdings, Inc. Spin-Off (Tables) | 6 Months Ended |
Jan. 31, 2019 | |
Rafael Holdings, Inc. Spin-Off [Member] | |
Schedule of consolidated statements of operations | Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Loss before income taxes $ — $ (680 ) $ — $ (1,220 ) Loss before income taxes attributable to IDT Corporation $ — $ (548 ) $ — $ (1,046 ) |
Debt Securities (Tables)
Debt Securities (Tables) | 6 Months Ended |
Jan. 31, 2019 | |
Debt Securities [Abstract] | |
Summary of marketable debt securities | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Available-for-sale securities: January 31, 2019: U.S. Treasury notes $ 749 $ — $ — $ 749 Municipal bonds 302 — — 302 Total $ 1,051 $ — $ — $ 1,051 July 31, 2018: Certificates of deposit* $ 3,032 $ — $ — $ 3,032 U.S. Treasury notes 1,693 — (1 ) 1,692 Municipal bonds 888 — — 888 Total $ 5,613 $ — $ (1 ) $ 5,612 * Each of the Company’s certificates of deposit had a CUSIP, was purchased in the secondary market through a broker, and may be sold in the secondary market. |
Summary of available-for-sale debt securities | Fair Value (in thousands) Within one year $ 1,051 After one year through five years — After five years through ten years — After ten years — Total $ 1,051 |
Summary of available-for-sale securities, unrealized loss position | Unrealized Losses Fair Value (in thousands) January 31, 2019: Total $ — $ — July 31, 2018: U.S. Treasury notes $ 1 $ 1,692 |
Equity Investments (Tables)
Equity Investments (Tables) | 6 Months Ended |
Jan. 31, 2019 | |
Equity Investments [Abstract] | |
Summary of carrying value of equity investments | Three Months Ended Six Months Ended (in thousands) Balance, beginning of period $ 3,118 $ 1,883 Adoption of change in accounting for equity investments — 1,213 Adjusted balance, beginning of period 3,118 3,096 Adjustment for observable transactions involving a similar investment from the same issuer (71 ) (49 ) Redemptions (2 ) (2 ) Impairments — — Balance, end of period $ 3,045 $ 3,045 |
Summary of unrealized gains and losses for all equity investments | Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Net gains recognized during the period on equity investments $ 128 $ 3 $ 81 $ 23 Less: net gains and losses recognized during the period on equity investments redeemed during the period — — — — Unrealized gains recognized during the period on equity investments still held at the reporting date $ 128 $ 3 $ 81 $ 23 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jan. 31, 2019 | |
Fair Value Measurements [Abstract] | |
Summary of balance of assets measured at fair value on a recurring basis | Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) January 31, 2019 Debt securities $ 749 $ 302 $ — $ 1,051 Equity securities included in other current assets 497 — — 497 Equity securities included in equity investments — — 2,745 2,745 Total $ 1,246 $ 302 $ 2,745 $ 4,293 July 31, 2018 Debt securities $ 1,692 $ 3,920 $ — $ 5,612 Equity securities included in other current assets 360 — — 360 Total $ 2,052 $ 3,920 $ — $ 5,972 (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market |
Summary of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Balance, beginning of period $ 2,816 $ 6,300 $ — $ 6,300 Transfer into Level 3 from adoption of change in accounting for equity investments — — 2,794 — Total losses recognized in “Other income (expense), net” (71 ) — (49 ) — Balance, end of period $ 2,745 $ 6,300 $ 2,745 $ 6,300 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ (71 ) $ — $ (49 ) $ — |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jan. 31, 2019 | |
Earnings (Loss) Per Share [Abstract] | |
Schedule of weighted-average number of shares used in the calculation of basic and diluted earnings (loss) per share | Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Basic weighted-average number of shares 24,816 24,643 24,323 24,635 Effect of dilutive securities: Stock options — 10 — — Non-vested restricted Class B common stock 5 71 — — Diluted weighted-average number of shares 24,821 24,724 24,323 24,635 |
Summary of shares excluded from the diluted earnings per share | Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Stock options 1,243 1,160 1,243 1,273 Non-vested restricted Class B common stock — — 20 191 Shares excluded from the calculation of diluted earnings per share 1,243 1,160 1,263 1,464 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jan. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of accumulated balances for each classification of other comprehensive income (loss) | Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss (in thousands) Balance, July 31, 2018 $ (34 ) $ (4,938 ) $ (4,972 ) Adjustment from the adoption of change in accounting for equity investments (see Note 8) 33 — 33 Adjusted balance, August 1, 2018 (1 ) (4,938 ) (4,939 ) Other comprehensive income attributable to IDT Corporation 1 483 484 Balance, January 31, 2019 $ — $ (4,455 ) $ (4,455 ) |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jan. 31, 2019 | |
Business Segment Information [Abstract] | |
Schedule of operating results of business segments | (in thousands) Telecom net2phone All Other Corporate Total Three Months Ended January 31, 2019 Revenues $ 337,950 $ 11,523 $ — $ — $ 349,473 Income (loss) from operations 6,191 (1,897 ) — (2,751 ) 1,543 Other operating income (expense), net 215 25 — (330 ) (90 ) Three Months Ended January 31, 2018 Revenues $ 387,065 $ 8,299 $ 519 $ — $ 395,883 Income (loss) from operations 4,450 (790 ) (915 ) (3,225 ) (480 ) Severance 195 — — — 195 Other operating expense — — — (846 ) (846 ) Six Months Ended January 31, 2019 Revenues $ 689,799 $ 21,990 $ — $ — $ 711,789 Income (loss) from operations 11,460 (3,397 ) — (5,238 ) 2,825 Other operating income (expense), net 215 25 — (525 ) (285 ) Six Months Ended January 31, 2018 Revenues $ 772,148 $ 16,087 $ 1,203 $ — $ 789,438 Income (loss) from operations 8,873 (1,464 ) (1,462 ) (6,344 ) (397 ) Severance 605 — — 30 635 Other operating expense — — — (1,625 ) (1,625 ) |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Jan. 31, 2019 | |
Other Income (Expense), Net [Abstract] | |
Schedule of other income (expense), net | Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Foreign currency transaction gains (losses) $ 370 $ 169 $ (835 ) $ (559 ) Loss on sale of debt securities — (16 ) — (9 ) Gain on investments 128 179 81 59 Other (2 ) 38 (99 ) 53 Total other income (expense), net $ 496 $ 370 $ (853 ) $ (456 ) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenue from External Customer [Line Items] | ||||
Revenues, Total | $ 349,473 | $ 395,883 | $ 711,789 | $ 789,438 |
Telecom & Payment Services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 337,950 | 387,065 | 689,799 | 772,148 |
Total net2phone [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 11,523 | 8,299 | 21,990 | 16,087 |
All Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 519 | 1,203 | ||
Boss Revolution Calling [Member] | Telecom & Payment Services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 122,146 | 131,621 | 245,659 | 263,805 |
Carrier Services [Member] | Telecom & Payment Services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 127,896 | 170,804 | 270,118 | 339,634 |
Mobile Top-Up [Member] | Telecom & Payment Services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 64,276 | 62,131 | 129,623 | 123,615 |
Other [Member] | Telecom & Payment Services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 16,603 | 17,480 | 31,197 | 35,509 |
Growth [Member] | Telecom & Payment Services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 7,029 | 5,029 | 13,202 | 9,585 |
net2phone-UCaaS [Member] | Total net2phone [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 6,027 | 3,233 | 10,832 | 5,630 |
net2phone-Platform Services [Member] | Total net2phone [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | $ 5,496 | $ 5,066 | $ 11,158 | $ 10,457 |
Revenue Recognition (Details 1)
Revenue Recognition (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Outside the United States: | ||||
Total outside the United States | $ 115,673 | $ 123,829 | $ 242,169 | $ 253,523 |
Revenues, Total | 349,473 | 395,883 | 711,789 | 789,438 |
United States [Member] | ||||
Outside the United States: | ||||
Revenues, Total | 233,800 | 272,054 | 469,620 | 535,915 |
United Kingdom [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 49,083 | 54,782 | 103,483 | 115,313 |
Netherlands [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 48,057 | 47,152 | 98,979 | 96,861 |
Other [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 18,533 | 21,895 | 39,707 | 41,349 |
Telecom & Payment Services [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 112,244 | 121,993 | 236,203 | 249,879 |
Revenues, Total | 337,950 | 387,065 | 689,799 | 772,148 |
Telecom & Payment Services [Member] | United States [Member] | ||||
Outside the United States: | ||||
Revenues, Total | 225,706 | 265,072 | 453,596 | 522,269 |
Telecom & Payment Services [Member] | United Kingdom [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 49,075 | 54,782 | 103,467 | 115,313 |
Telecom & Payment Services [Member] | Netherlands [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 48,057 | 47,152 | 98,979 | 96,861 |
Telecom & Payment Services [Member] | Other [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 15,112 | 20,059 | 33,757 | 37,705 |
Total net2phone [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 3,429 | 1,836 | 5,966 | 3,644 |
Revenues, Total | 11,523 | 8,299 | 21,990 | 16,087 |
Total net2phone [Member] | United States [Member] | ||||
Outside the United States: | ||||
Revenues, Total | 8,094 | 6,463 | 16,024 | 12,443 |
Total net2phone [Member] | United Kingdom [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 8 | 16 | ||
Total net2phone [Member] | Netherlands [Member] | ||||
Outside the United States: | ||||
Total outside the United States | ||||
Total net2phone [Member] | Other [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 3,421 | 1,836 | 5,950 | 3,644 |
All Other [Member] | ||||
Outside the United States: | ||||
Total outside the United States | ||||
Revenues, Total | 519 | 1,203 | ||
All Other [Member] | United States [Member] | ||||
Outside the United States: | ||||
Total outside the United States | ||||
Revenues, Total | 519 | 1,203 | ||
All Other [Member] | United Kingdom [Member] | ||||
Outside the United States: | ||||
Total outside the United States | ||||
All Other [Member] | Netherlands [Member] | ||||
Outside the United States: | ||||
Total outside the United States | ||||
All Other [Member] | Other [Member] | ||||
Outside the United States: | ||||
Total outside the United States |
Revenue Recognition (Details 2)
Revenue Recognition (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jan. 31, 2019 | Jan. 31, 2019 | |
Contract Liability [Member] | ||
Offsetting Liabilities [Line Items] | ||
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period | $ 16,488 | $ 18,624 |
Revenue Recognition (Details Te
Revenue Recognition (Details Textual) - ASC 606 [Member] $ in Millions | 6 Months Ended |
Jan. 31, 2019USD ($) | |
Revenue Recognition (Textual) | |
Deferred revenue | $ 8.6 |
Accumulated deficit [Member] | |
Revenue Recognition (Textual) | |
Deferred Customer Contract Acquisition Costs | 1.3 |
Other current assets [Member] | |
Revenue Recognition (Textual) | |
Defer costs | 0.6 |
Other assets [Member] | |
Revenue Recognition (Textual) | |
Defer costs | $ 0.7 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2018 | Jul. 31, 2017 |
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 74,445 | $ 68,089 | ||
Restricted cash included in other current assets | 566 | 285 | ||
Cash and cash equivalents included in current assets held for sale (see Note 4) | 5,372 | 5,892 | ||
Restricted cash and cash equivalents included in current assets held for sale (see Note 4) | 158,881 | 128,931 | ||
Total cash, cash equivalents, and restricted cash and cash equivalents | $ 239,264 | $ 203,197 | $ 188,803 | $ 211,963 |
IDT Financial Services Holdin_3
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jul. 31, 2018 |
Current assets held for sale: | ||
Cash and cash equivalents | $ 5,372 | $ 5,892 |
Restricted cash and cash equivalents | 158,881 | 128,931 |
Total current assets held for sale | 167,083 | 137,272 |
Noncurrent assets held for sale: | ||
Other assets | 5,962 | 5,706 |
Current liabilities held for sale: | ||
Total current liabilities held for sale | 159,248 | 128,770 |
Noncurrent liabilities held for sale: | ||
Total noncurrent liabilities held for sale | 433 | 542 |
IDTFS Holding [Member] | ||
Current assets held for sale: | ||
Cash and cash equivalents | 5,372 | 5,892 |
Restricted cash and cash equivalents | 158,881 | 128,931 |
Trade accounts receivable, net of allowance for doubtful accounts of $1,715 and $2,192 at January 31, 2019 and July 31, 2018, respectively | 2,110 | 1,265 |
Prepaid expenses | 487 | 1,016 |
Other current assets | 233 | 168 |
Total current assets held for sale | 167,083 | 137,272 |
Noncurrent assets held for sale: | ||
Property, plant and equipment, net | 4 | 12 |
Other intangibles, net | 176 | 190 |
Other assets | 5,782 | 5,504 |
Total noncurrent assets held for sale | 5,962 | 5,706 |
Current liabilities held for sale: | ||
Trade accounts payable | 631 | 776 |
Accrued expenses | 279 | 407 |
Deferred revenue | 58 | 12 |
Customer deposits | 158,272 | 127,571 |
Other current liabilities | 8 | 4 |
Total current liabilities held for sale | 159,248 | 128,770 |
Noncurrent liabilities held for sale: | ||
Other liabilities | 433 | 542 |
Total noncurrent liabilities held for sale | $ 433 | $ 542 |
IDT Financial Services Holdin_4
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss before income taxes | $ 2,225 | $ 176 | $ 2,267 | $ (205) |
IDT Financial Services Holding Limited [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss before income taxes | (437) | (559) | (470) | (1,009) |
Loss before income taxes attributable to IDT Corporation | $ (437) | $ (559) | $ (470) | $ (1,009) |
IDT Financial Services Holdin_5
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale (Details Textual) - USD ($) $ in Thousands | Jan. 31, 2019 | Jul. 31, 2018 |
IDT Financial Services Holding Limited Assets and Liabilities Held for Sale (Textual) | ||
Allowance for doubtful accounts | $ 1,715 | $ 2,192 |
Acquisition of Versature Corp_2
Acquisition of Versature Corp (Details) $ in Thousands | Sep. 14, 2018USD ($) |
Acquisition of Versature Corp [Abstract] | |
Trade accounts receivable | $ 370 |
Prepaid expenses | 65 |
Property, plant and equipment | 1,826 |
Non-compete agreement | 600 |
Customer relationships | 2,930 |
Tradename | 490 |
Other assets | 486 |
Trade accounts payable | (81) |
Accrued expenses | (523) |
Other liabilities | (710) |
Net assets excluding cash acquired | 5,453 |
Supplemental information: | |
Cash paid | 5,870 |
Cash acquired | (417) |
Total consideration, net of cash acquired | $ 5,453 |
Acquisition of Versature Corp_3
Acquisition of Versature Corp (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Acquisition of Versature Corp [Abstract] | ||||
Revenues | $ 349,473 | $ 397,362 | $ 712,673 | $ 792,284 |
Net income (loss) | $ 489 | $ 1,641 | $ (867) | $ (319) |
Acquisition of Versature Corp_4
Acquisition of Versature Corp (Details Textual) $ in Thousands | Sep. 14, 2018USD ($) |
Acquisition of Versature Corp (Textual) | |
Cash paid | $ 5,870 |
Acquired outstanding shares percentage | 100.00% |
Rafael Holdings, Inc. Spin-Of_2
Rafael Holdings, Inc. Spin-Off (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss before income taxes | $ 2,225 | $ 176 | $ 2,267 | $ (205) |
Rafael Holdings, Inc. Spin-Off [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss before income taxes | (680) | (1,220) | ||
Loss before income taxes attributable to IDT Corporation | $ (548) | $ (1,046) |
Debt Securities (Details)
Debt Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jul. 31, 2018 | |
Available-for-sale securities: | |||
Amortized Cost | $ 1,051 | $ 5,613 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | (1) | ||
Fair Value | 1,051 | 5,612 | |
Certificates of deposit [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | [1] | 3,032 | |
Gross Unrealized Gains | [1] | ||
Gross Unrealized Losses | [1] | ||
Fair Value | [1] | 3,032 | |
U.S. Treasury notes [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | 749 | 1,693 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | (1) | ||
Fair Value | 749 | 1,692 | |
Municipal bonds [Member] | |||
Available-for-sale securities: | |||
Amortized Cost | 302 | 888 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | |||
Fair Value | $ 302 | $ 888 | |
[1] | Each of the Company's certificates of deposit has a CUSIP, was purchased in the secondary market through a broker, and may be sold in the secondary market. |
Debt Securities (Details 1)
Debt Securities (Details 1) $ in Thousands | Jan. 31, 2019USD ($) |
Debt Securities [Abstract] | |
Within one year | $ 1,051 |
After one year through five years | |
After five years through ten years | |
After ten years | |
Total | $ 1,051 |
Debt Securities (Details 2)
Debt Securities (Details 2) - USD ($) $ in Thousands | Jan. 31, 2019 | Jul. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | ||
Fair Value | ||
U.S. Treasury notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Losses | $ 1 | |
Fair Value | $ 1,692 |
Debt Securities (Details Textua
Debt Securities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | Jul. 31, 2018 | |
Debt Securities (Textual) | |||||
Equity securities, fair value | $ 400 | ||||
Proceeds from maturities and sales of available-for-sale securities | $ 1,200 | $ 12,100 | $ 4,600 | $ 31,600 | |
Realized losses from sales of available-for-sale securities | $ 16,000 | $ 9,000 |
Equity Investments (Details)
Equity Investments (Details) - Equity investments [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jan. 31, 2019 | Jan. 31, 2019 | |
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Balance, beginning of period | $ 3,118 | $ 1,883 |
Adoption of change in accounting for equity investments | 1,213 | |
Adjusted balance, beginning of period | 3,118 | 3,096 |
Adjustment for observable transactions involving a similar investment from the same issuer | (71) | (49) |
Redemptions | (2) | (2) |
Impairments | ||
Balance, end of period | $ 3,045 | $ 3,045 |
Equity Investments (Details 1)
Equity Investments (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||||
Net gains recognized during the period on equity investments | $ 128 | $ 3 | $ 81 | $ 23 |
Less: net gains and losses recognized during the period on equity investments redeemed during the period | ||||
Unrealized gains recognized during the period on equity investments still held at the reporting date | $ 128 | $ 3 | $ 81 | $ 23 |
Equity Investments (Details Tex
Equity Investments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | |
August 1, 2018 [Member] | |||
Equity Investments (Textual) | |||
Cumulative effect of adopting this ASU increase in equity investments | $ 1,200 | $ 1,200 | |
Accumulated other comprehensive loss [Member] | August 1, 2018 [Member] | |||
Equity Investments (Textual) | |||
Cumulative effect of adopting this ASU increase in equity investments | 33,000 | 33,000 | |
Accumulated deficit [Member] | August 1, 2018 [Member] | |||
Equity Investments (Textual) | |||
Cumulative effect of adopting this ASU increase in equity investments | $ 1,100 | $ 1,100 | |
Visa Series C Convertible Participating Preferred Stock [Member] | |||
Equity Investments (Textual) | |||
Owned shares | 1,830 | 1,830 | |
Shares owned fair value | $ 71,000 | $ 49,000 | |
Convertible shares | 13.886 | 13.886 | |
Zedge [Member] | Class B common stock [Member] | |||
Equity Investments (Textual) | |||
Owned shares | 42,282 | 42,282 | 42,282 |
Shares owned fair value | $ 100 | $ 100 | $ 100 |
Rafael [Member] | Class B common stock [Member] | |||
Equity Investments (Textual) | |||
Owned shares | 26,587 | 26,587 | 25,803 |
Shares owned fair value | $ 400 | $ 400 | $ 200 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jul. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities | $ 1,051 | $ 5,612 | |
Equity securities included in other current assets | 497 | 360 | |
Equity securities included in equity investments | 2,745 | ||
Total | 4,293 | 5,972 | |
Fair Value Measurements, Recurring basis [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities | [1] | 749 | 1,692 |
Equity securities included in other current assets | [1] | 497 | 360 |
Equity securities included in equity investments | [1] | ||
Total | [1] | 1,246 | 2,052 |
Fair Value Measurements, Recurring basis [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities | [2] | 302 | 3,920 |
Equity securities included in other current assets | [2] | ||
Equity securities included in equity investments | [2] | ||
Total | [2] | 302 | 3,920 |
Fair Value Measurements, Recurring basis [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities | [3] | ||
Equity securities included in other current assets | [3] | ||
Equity securities included in equity investments | [3] | 2,745 | |
Total | [3] | $ 2,745 | |
[1] | quoted prices in active markets for identical assets or liabilities | ||
[2] | observable inputs other than quoted prices in active markets for identical assets and liabilities | ||
[3] | no observable pricing inputs in the market |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | $ 2,816 | $ 6,300 | $ 6,300 | |
Transfer into Level 3 from adoption of change in accounting for equity investments | 2,794 | |||
Total losses recognized in "Other income (expense), net" | (71) | (49) | ||
Balance, end of period | 2,745 | 6,300 | 2,745 | 6,300 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period | $ (71) | $ (49) |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details Textual) - USD ($) $ in Millions | Jan. 31, 2019 | Jul. 31, 2018 |
Fair Value Measurements (Textual) | ||
Fair value of investments in hedge funds | $ 4.8 | $ 4.8 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 13, 2018 | Dec. 21, 2018 | May 31, 2018 | Apr. 16, 2018 | Jan. 31, 2019 | Jan. 31, 2018 |
Equity (Textual) | ||||||
Aggregate purchase price | $ 13,272 | |||||
Common Class B [Member] | Howard S. Jonas [Member] | ||||||
Equity (Textual) | ||||||
Aggregate purchase price | $ 14,800 | $ 1,500 | ||||
Agreed to purchase shares of common stock | 2,546,689 | 2,546,689 | ||||
Purchase price per share | $ 5.89 | |||||
Purchase price reduced | $ 200 | |||||
Stock Repurchase Program [Member] | Common Class B [Member] | ||||||
Equity (Textual) | ||||||
Repurchase of aggregate shares | 8,000,000 | |||||
Aggregate purchase price of shares repurchased | $ 3,900 | |||||
Class B common stock shares repurchased | 729,110 | |||||
Shares remained available for repurchase under the stock repurchase program | 6,900,000 | |||||
Stock Repurchase Program [Member] | Common Class B [Member] | Employee [Member] | ||||||
Equity (Textual) | ||||||
Aggregate purchase price of shares repurchased | $ 16,000 | $ 100 | ||||
Class B common stock shares repurchased | 2,036 | 5,170 | ||||
2015 Stock Option and Incentive Plan [Member] | Common Class B [Member] | ||||||
Equity (Textual) | ||||||
Common stock available for grant of awards | 100,000 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Weighted-average number of shares used in the calculation of basic and diluted earnings (loss) per share [Abstract] | ||||
Basic weighted-average number of shares | 24,816 | 24,643 | 24,323 | 24,635 |
Effect of dilutive securities: | ||||
Stock options | 10 | |||
Non-vested restricted Class B common stock | 5 | 71 | ||
Diluted weighted-average number of shares | 24,821 | 24,724 | 24,323 | 24,635 |
Earnings (Loss) Per Share (De_2
Earnings (Loss) Per Share (Details 1) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Shares were excluded from the diluted earnings per share computations | ||||
Shares excluded from the calculation of diluted earnings per share | 1,243 | 1,160 | 1,263 | 1,464 |
Stock options [Member] | ||||
Shares were excluded from the diluted earnings per share computations | ||||
Shares excluded from the calculation of diluted earnings per share | 1,243 | 1,160 | 1,243 | 1,273 |
Non-vested restricted Class B common stock [Member] | ||||
Shares were excluded from the diluted earnings per share computations | ||||
Shares excluded from the calculation of diluted earnings per share | 20 | 191 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Oct. 31, 2018 | Jan. 31, 2019 | |
Revolving Credit Facility (Textual) | ||
Maximum principal amount of credit agreement | $ 25 | |
Unused outstanding amount | $ 25 | |
Line of credit termination date | Jul. 15, 2019 | |
Average percentage of commitment fee per annum | 0.30% | |
Interest rate, description | The principal outstanding bears interest per annum at the LIBOR rate adjusted by the Regulation D maximum reserve requirement plus 125 basis points. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Beginning balance | $ (4,972) | |||
Other comprehensive income attributable to IDT Corporation | $ (38) | $ 210 | 484 | $ (188) |
Ending balance | (4,455) | (4,455) | ||
Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Beginning balance | (34) | |||
Adjustment from the adoption of change in accounting for equity investments (see Note 8) | 33 | |||
Adjusted balance, August 1, 2018 | (1) | |||
Other comprehensive income attributable to IDT Corporation | 1 | |||
Ending balance | ||||
Foreign Currency Translation [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Beginning balance | (4,938) | |||
Adjustment from the adoption of change in accounting for equity investments (see Note 8) | ||||
Adjusted balance, August 1, 2018 | (4,938) | |||
Other comprehensive income attributable to IDT Corporation | 483 | |||
Ending balance | (4,455) | (4,455) | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive income (loss) | ||||
Beginning balance | (4,972) | |||
Adjustment from the adoption of change in accounting for equity investments (see Note 8) | 33 | |||
Adjusted balance, August 1, 2018 | (4,939) | |||
Other comprehensive income attributable to IDT Corporation | 484 | |||
Ending balance | $ (4,455) | $ (4,455) |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 349,473 | $ 395,883 | $ 711,789 | $ 789,438 |
Income (loss) from operations | 1,543 | (480) | 2,825 | (397) |
Severance | 195 | 635 | ||
Other operating income (expense), net | (90) | (846) | (285) | (1,625) |
Operating Segments [Member] | Telecom & Payment Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 337,950 | 387,065 | 689,799 | 772,148 |
Income (loss) from operations | 6,191 | 4,450 | 11,460 | 8,873 |
Severance | 195 | 605 | ||
Other operating income (expense), net | 215 | 215 | ||
Operating Segments [Member] | net2phone [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 11,523 | 8,299 | 21,990 | 16,087 |
Income (loss) from operations | (1,897) | (790) | (3,397) | (1,464) |
Severance | ||||
Other operating income (expense), net | 25 | 25 | ||
Operating Segments [Member] | All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 519 | 1,203 | ||
Income (loss) from operations | (915) | (1,462) | ||
Severance | ||||
Other operating income (expense), net | ||||
Operating Segments [Member] | Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | ||||
Income (loss) from operations | (2,751) | (3,225) | (5,238) | (6,344) |
Severance | 30 | |||
Other operating income (expense), net | $ (330) | $ (846) | $ (525) | $ (1,625) |
Business Segment Information _2
Business Segment Information (Details Textual) | 6 Months Ended |
Jan. 31, 2019Customer | |
Business Segment Information (Textual) | |
Number of reportable segments | 2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | Jul. 31, 2018 | Aug. 31, 2017 | |
Commitments and Contingencies (Textual) | ||||||
Accrued expenses | $ 45 | $ 45 | $ 43.9 | |||
Purchase commitment of company | 22.9 | 22.9 | ||||
Aggregate commitment | 20.1 | 20.1 | ||||
Escrow deposit | $ 9.2 | |||||
Performance bonds outstanding | 17.1 | 17.1 | ||||
Cash and cash equivalents | 13.9 | 13.9 | $ 10.7 | |||
Legal fees | $ 0.3 | $ 0.2 | $ 0.5 | $ 1 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Schedule of other (expense) income, net | ||||
Foreign currency transaction gains (losses) | $ 370 | $ 169 | $ (835) | $ (559) |
(Loss) gain on sale of debt securities | (16) | (9) | ||
Gain on investments | 128 | 179 | 81 | 59 |
Other | (2) | 38 | (99) | 53 |
Total other income (expense), net | $ 496 | $ 370 | $ (853) | $ (456) |
The Tax Cuts and Jobs Act (Deta
The Tax Cuts and Jobs Act (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Dec. 22, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | |
The Tax Cuts and Jobs Act (Textual) | |||
U.S. federal statutory corporate tax rate | 26.90% | ||
U.S. federal statutory tax rate, thereafter | 21.00% | ||
Federal net operating loss carryforwards | $ 11 | $ 12 | |
Minimum [Member] | |||
The Tax Cuts and Jobs Act (Textual) | |||
U.S. federal statutory corporate tax rate | 21.00% | ||
Maximum [Member] | |||
The Tax Cuts and Jobs Act (Textual) | |||
U.S. federal statutory corporate tax rate | 35.00% |