Mon, Jun 10, 8:44 PM (89 days ago)
IDT Corporation's Form 10-Q for the quarterly period ending April 30, 2024, reports a mixed performance across its business segments. The company recorded total revenues of $299.6 million for Q3 FY2024, a slight increase from $299.3 million in Q3 FY2023. Gross profit improved to $97.0 million from $87.6 million, reflecting a better gross margin of 32.4%, up from 29.3%. Operating income increased to $11.4 million from $10.4 million, driven by higher revenues in the National Retail Solutions (NRS) and Fintech segments, despite increased operating expenses. NRS revenues surged by 42.3% to $25.7 million, supported by growth in merchant services and POS network expansion. Fintech revenues grew by 44.7% to $31.5 million, primarily due to increased transaction volumes in BOSS Money. However, the Traditional Communications segment saw an 8.0% decline in revenues to $221.7 million, impacted by market-wide trends and a decline in IDT Global's international voice and SMS termination services. The company reported a net income of $6.3 million, down from $7.7 million in the same quarter last year, attributed to higher other expenses, including foreign currency losses and equity method investment losses. Cash flow from operations was strong at $49.3 million, up from $28.7 million, and IDT ended the quarter with $232.8 million in cash, cash equivalents, and restricted cash. Overall, while IDT demonstrated growth in specific segments, challenges in the Traditional Communications segment and increased operating expenses moderated overall performance.