Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Apr. 30, 2020 | Jun. 04, 2020 | |
Entity Registrant Name | IDT CORP | |
Entity Central Index Key | 0001005731 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --07-31 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 1-16371 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE | |
Class A common stock | ||
Entity Common Stock Shares Outstanding | 1,574,326 | |
Class B common stock | ||
Entity Common Stock Shares Outstanding | 24,974,837 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2020 | Jul. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 51,786 | $ 80,168 |
Restricted cash and cash equivalents | 114,667 | 177,031 |
Debt securities | 12,948 | 2,534 |
Equity investments | 5,716 | 5,688 |
Trade accounts receivable, net of allowance for doubtful accounts of $6,286 at April 30, 2020 and $5,444 at July 31, 2019 | 47,400 | 58,060 |
Prepaid expenses | 32,713 | 20,276 |
Other current assets | 26,686 | 24,704 |
Total current assets | 291,916 | 368,461 |
Property, plant and equipment, net | 30,436 | 34,355 |
Goodwill | 12,566 | 11,209 |
Other intangibles, net | 3,913 | 4,196 |
Equity investments | 8,569 | 9,319 |
Operating lease right-of-use assets | 10,307 | |
Deferred income tax assets, net | 1,795 | 4,589 |
Other assets | 12,108 | 11,574 |
Total assets | 371,610 | 443,703 |
Current liabilities: | ||
Trade accounts payable | 27,738 | 37,077 |
Accrued expenses | 118,065 | 127,834 |
Deferred revenue | 37,808 | 42,479 |
Customer deposits | 114,061 | 175,028 |
Other current liabilities | 10,860 | 6,652 |
Total current liabilities | 308,532 | 389,070 |
Operating lease liabilities | 8,109 | |
Other liabilities | 1,366 | 1,076 |
Total liabilities | 318,007 | 390,146 |
Commitments and contingencies | ||
IDT Corporation stockholders' equity: | ||
Preferred stock, $.01 par value; authorized shares-10,000; no shares issued | ||
Additional paid-in capital | 276,928 | 273,313 |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 986 and 908 shares of Class B common stock at April 30, 2020 and July 31, 2019, respectively | (52,217) | (51,739) |
Accumulated other comprehensive loss | (7,138) | (4,858) |
Accumulated deficit | (160,826) | (160,763) |
Total IDT Corporation stockholders' equity | 57,040 | 56,244 |
Noncontrolling interests | (3,437) | (2,687) |
Total equity | 53,603 | 53,557 |
Total liabilities and equity | 371,610 | 443,703 |
Class A common stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | 33 | 33 |
Class B common stock | ||
IDT Corporation stockholders' equity: | ||
Common stock, value | $ 260 | $ 258 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Apr. 30, 2020 | Jul. 31, 2019 |
Allowance for doubtful accounts | $ 6,286 | $ 5,444 |
Preferred stock, par value | $ .01 | $ .01 |
Preferred stock, authorized shares | 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 | 25,961 | 25,803 |
Common stock, shares outstanding | 24,975 | 24,895 |
Treasury stock, common stock shares | 986 | 908 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | ||
Income Statement [Abstract] | |||||
Revenues | $ 321,336 | $ 341,255 | $ 985,425 | $ 1,053,044 | |
Costs and expenses: | |||||
Direct cost of revenues (exclusive of depreciation and amortization) | 258,839 | 282,791 | 801,016 | 878,661 | |
Selling, general and administrative | [1] | 52,630 | 49,518 | 159,853 | 150,970 |
Depreciation and amortization | 5,239 | 5,524 | 15,718 | 16,881 | |
Severance | 602 | 553 | 1,714 | 553 | |
Total costs and expenses | 317,310 | 338,386 | 978,301 | 1,047,065 | |
Other operating expense, net (see Note 9) | (234) | (2,420) | (3,402) | (5,805) | |
Income from operations | 3,792 | 449 | 3,722 | 174 | |
Interest income, net | 56 | 177 | 525 | 472 | |
Other (expense) income, net | (2,144) | 360 | (1,360) | (494) | |
Income before income taxes | 1,704 | 986 | 2,887 | 152 | |
(Provision for) benefit from income taxes | (1,319) | 1,471 | (3,020) | (704) | |
Net income (loss) | 385 | 2,457 | (133) | (552) | |
Net loss (income) attributable to noncontrolling interests | 133 | (287) | 70 | (888) | |
Net income (loss) attributable to IDT Corporation | $ 518 | $ 2,170 | $ (63) | $ (1,440) | |
Earnings (loss) per share attributable to IDT Corporation common stockholders: | |||||
Basic | $ 0.02 | $ 0.08 | $ 0 | $ (0.06) | |
Diluted | $ 0.02 | $ 0.08 | $ 0 | $ (0.06) | |
Weighted-average number of shares used in calculation of earnings (loss) per share: | |||||
Basic | 26,371 | 26,263 | 26,323 | 24,970 | |
Diluted | 26,506 | 26,263 | 26,323 | 24,970 | |
(i) Stock-based compensation included in selling, general and administrative expenses | $ 810 | $ 332 | $ 3,341 | $ 1,212 | |
[1] | Stock-based compensation included in selling, general and administrative expenses |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 385 | $ 2,457 | $ (133) | $ (552) |
Other comprehensive (loss) income: | ||||
Change in unrealized loss on available-for-sale securities | 84 | 84 | 1 | |
Foreign currency translation adjustments | (647) | (10) | (2,364) | 473 |
Other comprehensive (loss) income | (563) | (10) | (2,280) | 474 |
Comprehensive (loss) income | (178) | 2,447 | (2,413) | (78) |
Comprehensive loss (income) attributable to noncontrolling interests | 133 | (287) | 70 | (888) |
Comprehensive (loss) income attributable to IDT Corporation | $ (45) | $ 2,160 | $ (2,343) | $ (966) |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | IDT Corporation StockholdersClass A Common Stock | IDT Corporation StockholdersClass B Common Stock | IDT Corporation StockholdersAdditional Paid-In Capital | IDT Corporation StockholdersTreasury Stock | IDT Corporation StockholdersAccumulated Other Comprehensive Loss | IDT Corporation StockholdersAccumulated Deficit | Noncontrolling Interests | Total |
Balance at Jul. 31, 2018 | $ 33 | $ 256 | $ 294,047 | $ (85,597) | $ (4,972) | $ (173,103) | $ 639 | $ 31,303 |
Adjustment from the adoption of change in revenue recognition | 9,064 | 9,064 | ||||||
Adjustment from the adoption of change in accounting for equity investments | 33 | 1,140 | 1,173 | |||||
BALANCE AT AUGUST 1, 2018 | 33 | 256 | 294,047 | (85,597) | (4,939) | (162,899) | 639 | 41,540 |
Repurchases of Class B common stock through repurchase program | (3,854) | (3,854) | ||||||
Sale of Class B common stock to Howard S. Jonas | (22,968) | 37,740 | 14,772 | |||||
Restricted Class B common stock purchased from employees | (28) | (28) | ||||||
Stock-based compensation | 1,212 | 1,212 | ||||||
Distributions to noncontrolling interests | (1,187) | (1,187) | ||||||
Other comprehensive (loss) income | 474 | 474 | ||||||
Net income (loss) | (1,440) | 888 | (552) | |||||
Balance at Apr. 30, 2019 | 33 | 256 | 272,291 | (51,739) | (4,465) | (164,339) | 340 | 52,377 |
Balance at Jan. 31, 2019 | 33 | 256 | 271,959 | (51,727) | (4,455) | (166,509) | 503 | 50,060 |
Restricted Class B common stock purchased from employees | (12) | (12) | ||||||
Stock-based compensation | 332 | 332 | ||||||
Distributions to noncontrolling interests | (450) | (450) | ||||||
Other comprehensive (loss) income | (10) | (10) | ||||||
Net income (loss) | 2,170 | 287 | 2,457 | |||||
Balance at Apr. 30, 2019 | 33 | 256 | 272,291 | (51,739) | (4,465) | (164,339) | 340 | 52,377 |
Balance at Jul. 31, 2019 | 33 | 258 | 273,313 | (51,739) | (4,858) | (160,763) | (2,687) | 53,557 |
Exercise of stock options | 276 | 276 | ||||||
Repurchases of Class B common stock through repurchase program | (212) | (212) | ||||||
Restricted Class B common stock purchased from employees | (266) | (266) | ||||||
Stock-based compensation | 2 | 3,339 | 3,341 | |||||
Distributions to noncontrolling interests | (680) | (680) | ||||||
Other comprehensive (loss) income | (2,280) | (2,280) | ||||||
Net income (loss) | (63) | (70) | (133) | |||||
Balance at Apr. 30, 2020 | 33 | 260 | 276,928 | (52,217) | (7,138) | (160,826) | (3,437) | 53,603 |
Balance at Jan. 31, 2020 | 33 | 260 | 276,118 | (52,005) | (6,575) | (161,344) | (3,094) | 53,393 |
Repurchases of Class B common stock through repurchase program | (212) | (212) | ||||||
Stock-based compensation | 810 | 810 | ||||||
Distributions to noncontrolling interests | (210) | (210) | ||||||
Other comprehensive (loss) income | (563) | (563) | ||||||
Net income (loss) | 518 | (133) | 385 | |||||
Balance at Apr. 30, 2020 | $ 33 | $ 260 | $ 276,928 | $ (52,217) | $ (7,138) | $ (160,826) | $ (3,437) | $ 53,603 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Operating activities | ||
Net loss | $ (133) | $ (552) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 15,718 | 16,881 |
Deferred income taxes | 2,912 | 699 |
Provision for doubtful accounts receivable | 2,282 | 1,218 |
Stock-based compensation | 3,341 | 1,212 |
Other | 814 | (700) |
Change in assets and liabilities: | ||
Trade accounts receivable | 8,374 | 14,045 |
Prepaid expenses, other current assets and other assets | (13,080) | 213 |
Trade accounts payable, accrued expenses, other current liabilities and other liabilities | (18,894) | (13,032) |
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank) | (67,273) | 33,086 |
Deferred revenue | (4,704) | (5,716) |
Net cash (used in) provided by operating activities | (70,643) | 47,354 |
Investing activities | ||
Capital expenditures | (11,861) | (13,724) |
Payments for acquisitions, net of cash acquired | (450) | (5,526) |
Purchases of debt securities and equity investments | (14,790) | (1,007) |
Proceeds from maturities and sales of debt securities and redemptions of equity investments | 4,317 | 6,312 |
Net cash used in investing activities | (22,784) | (13,945) |
Financing activities | ||
Distributions to noncontrolling interests | (680) | (1,187) |
Proceeds from sale of Class B common stock to Howard S. Jonas | 13,272 | |
Repayment of other liabilities. | (449) | (635) |
Proceeds from note payable | 10,000 | |
Repayment of note payable | (10,000) | |
Repayments of borrowings under revolving credit facility | (1,429) | (3,000) |
Proceeds from borrowings under revolving credit facility | 1,429 | 3,000 |
Proceeds from exercise of stock options | 276 | |
Repurchases of Class B common stock | (478) | (3,882) |
Net cash (used in) provided by financing activities | (1,331) | 7,568 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents | 4,012 | (2,000) |
Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents | (90,746) | 38,977 |
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period | 257,199 | 203,197 |
Cash, cash equivalents, and restricted cash and cash equivalents at end of period | 166,453 | 242,174 |
Supplemental schedule of non-cash investing and financing activities | ||
Liabilities incurred for acquisition | 375 | |
Howard S. Jonas' advance payment used for sale of Class B common stock | $ 1,500 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [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 notes 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 nine months ended April 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2020. The balance sheet at July 31, 2019 has been derived from the Company's audited financial statements at that date but does not include all of the information and notes 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, 2019, 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 2020 refers to the fiscal year ending July 31, 2020). |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Apr. 30, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Note 2—Revenue Recognition 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. The Telecom & Payment Services segment is comprised of Core and Growth verticals. Core includes BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the United States, Carrier Services, which provides international long-distance termination and outsourced traffic management solutions to telecoms worldwide, and Mobile Top-Up, which enables customers to transfer airtime and bundles of airtime, messaging and data credits to mobile accounts internationally and domestically. Core also includes smaller communications and payment offerings, many in harvest mode. Growth includes National Retail Solutions, which operates a point-of-sale terminal-based network for independent retailers, BOSS Revolution Money Transfer, an international money remittance service for customers in the United States, and BOSS Revolution Mobile, a mobile virtual network operator in the United States. The net2phone segment is comprised of net2phone-Unified Communications as a Service ("UCaaS"), a unified cloud-based communications service for businesses in North and South America and certain other international markets, and net2phone-Platform Services, which provides telephony services to cable operators and other businesses by leveraging a common technology platform. The Company's core operations are mostly minute-based, paid-voice communications services, and revenue is primarily recognized at a point in time. Telecom & Payment Services' growth initiatives and net2phone-UCaaS are technology-driven, synergistic businesses that leverage the Company's core assets, and revenue, in some cases, is recognized over time. The Company's most significant revenue streams are from BOSS Revolution Calling, Carrier Services, and Mobile Top-Up. BOSS Revolution Calling and Mobile Top-Up are sold direct-to-consumers and through distributors and retailers. Disaggregated Revenues The following table shows the Company's revenues disaggregated by business segment and service offered to customers: Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Core Operations: BOSS Revolution Calling $ 111,541 $ 120,455 $ 340,557 $ 366,114 Carrier Services 87,306 120,955 302,482 391,073 Mobile Top-Up 85,109 67,567 237,741 197,189 Other 10,127 12,202 32,484 43,730 Growth 14,707 7,659 34,078 20,531 Total Telecom & Payment Services 308,790 328,838 947,342 1,018,637 net2phone-UCaaS 8,137 6,651 23,298 17,483 net2phone-Platform Services 4,409 5,766 14,785 16,924 Total net2phone 12,546 12,417 38,083 34,407 Total $ 321,336 $ 341,255 $ 985,425 $ 1,053,044 The following table shows the Company's revenues disaggregated by geographic region, which is determined based on selling location: (in thousands) Telecom & Payment Services net2phone Total Three Months Ended April 30, 2020 United States $ 216,310 $ 8,344 $ 224,654 Outside the United States: United Kingdom 26,360 3 26,363 Netherlands 52,237 — 52,237 Other 13,883 4,199 18,082 Total outside the United States 92,480 4,202 96,682 Total $ 308,790 $ 12,546 $ 321,336 (in thousands) Telecom & Payment Services net2phone Total Three Months Ended April 30, 2019 United States $ 216,271 $ 8,833 $ 225,104 Outside the United States: United Kingdom 44,476 3 44,479 Netherlands 48,817 — 48,817 Other 19,274 3,581 22,855 Total outside the United States 112,567 3,584 116,151 Total $ 328,838 $ 12,417 $ 341,255 (in thousands) Telecom & Payment Services net2phone Total Nine Months Ended April 30, 2020 United States $ 645,909 $ 25,452 $ 671,361 Outside the United States: United Kingdom 98,304 10 98,314 Netherlands 156,870 — 156,870 Other 46,259 12,621 58,880 Total outside the United States 301,433 12,631 314,064 Total $ 947,342 $ 38,083 $ 985,425 (in thousands) Telecom & Payment Services net2phone Total Nine Months Ended April 30, 2019 United States $ 673,141 $ 24,857 $ 697,998 Outside the United States: United Kingdom 143,887 19 143,906 Netherlands 147,796 — 147,796 Other 53,813 9,531 63,344 Total outside the United States 345,496 9,550 355,046 Total $ 1,018,637 $ 34,407 $ 1,053,044 R emaining Performance Obligations The Company does not have any significant revenue from performance obligations satisfied or partially satisfied in previous reporting periods. The Company's remaining performance obligations at April 30, 2020 had an original expected duration of one year or less. Accounts Receivable and Contract Balances The timing of revenue recognition may differ from the time of billing to the Company's customers. Trade accounts receivable in the Company's 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 Calling, traditional calling cards, and Mobile Top-Up services. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in the Company's consolidated balance sheet as "Deferred revenue". The following table presents information about the Company's contract liability balance: Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period $ 23,600 $ 25,282 $ 31,306 $ 30,363 Deferred Customer Contract Acquisition and Fulfillment Costs The Company recognizes as an asset its incremental costs of obtaining a contract with a customer that it expects to recover. The Company charges its direct costs to fulfill contracts to expense as incurred. The Company's incremental costs of obtaining a contract with a customer 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 customer relationship period when it is expected to exceed one year. The Company's deferred customer contract acquisition costs were as follows: April 30, July 31, (in thousands) Deferred customer contract acquisition costs included in "Other current assets" $ 2,156 $ 1,474 Deferred customer contract acquisition costs included in "Other assets" 2,162 1,716 Total $ 4,318 $ 3,190 The Company's amortization of deferred customer contract acquisition costs during the periods were as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Amortization of deferred customer contract acquisition costs $ 616 $ 466 $ 1,781 $ 1,218 |
Leases
Leases | 9 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 3—Leases On August 1, 2019, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) The Company elected to apply the optional ASC 842 transition provisions beginning on August 1, 2019. Accordingly, the Company will continue to apply Topic 840 prior to August 1, 2019, including Topic 840 disclosure requirements, in the comparative periods presented. The Company elected the package of practical expedients for all its leases that commenced before August 1, 2019. In addition, the Company elected not to apply the recognition requirements of ASC 842 for its short-term leases. The Company's leases primarily consist of operating leases for office space. These leases have remaining terms from one to six years. net2phone-UCaaS also has operating leases for office equipment. Certain of these leases include renewal options that may be exercised and/or options to terminate the lease. The Company has concluded that it is not reasonably certain that it would exercise the options to extend the lease or terminate the lease. The adoption of ASC 842 resulted in the recognition of operating lease liabilities of $12.4 million and operating ROU assets of the same amount as of August 1, 2019 based on the present value of the remaining minimum rental payments associated with the Company's leases. As the Company's leases do not provide an implicit rate, nor is one readily available, the Company used its incremental borrowing rate based on information available at August 1, 2019 to determine the present value of its future minimum rental payments. net2phone has equipment leases that were classified as capital leases under Topic 840 and are finance leases under ASC 842. net2phone is also the lessor in various equipment leases that were classified as sales-type capital leases under Topic 840, that are classified as sales-type finance leases under ASC 842. The assets and liabilities related to these finance leases are not material to the Company's consolidated balance sheets. On March 26, 2018, the Company completed a pro rata distribution of the common stock that the Company held in the Company's former subsidiary, Rafael Holdings, Inc. ("Rafael") to the Company's stockholders of record as of the close of business on March 13, 2018. The Company leases office space and parking in Rafael's building and parking garage located at 520 Broad St, Newark, New Jersey. The Company also leases office space in Israel from Rafael. The Newark lease expires in April 2025 and the Israel lease expires in July 2025. In the three months ended April 30, 2020 and 2019, the Company incurred lease costs of $0.5 million and $0.5 million, respectively, and in the nine months ended April 30, 2020 and 2019, the Company incurred lease costs of $1.4 million and $1.3 million, respectively, in connection with the Rafael leases, which is included in operating lease cost in the table below. Supplemental disclosures related to the Company's operating leases were as follows: Three Months Nine Months (in thousands) Operating lease cost $ 707 $ 2,130 Short-term lease cost 66 198 Total lease cost $ 773 $ 2,328 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 687 $ 2,056 April 30, Weighted-average remaining lease term-operating leases 4.4 years Weighted-average discount rate-operating leases 3.12 % The Company's aggregate operating lease liability was as follows: April 30, (in thousands) Operating lease liabilities included in "Other current liabilities" $ 2,400 Operating lease liabilities included in noncurrent liabilities 8,109 Total $ 10,509 Future minimum maturities of operating lease liabilities were as follows: Twelve-month period (in thousands) 2021 $ 2,691 2022 2,566 2023 2,237 2024 1,861 2025 1,896 Thereafter 41 Total lease payments 11,292 Less imputed interest (783 ) Total operating lease liabilities $ 10,509 |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | 9 Months Ended |
Apr. 30, 2020 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | Note 4—Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents reported in the consolidated balance sheet that equals the total of the same amounts reported in the consolidated statement of cash flows: April 30, July 31, (in thousands) Cash and cash equivalents $ 51,786 $ 80,168 Restricted cash and cash equivalents 114,667 177,031 Total cash, cash equivalents, and restricted cash and cash equivalents $ 166,453 $ 257,199 At April 30, 2020 and July 31, 2019, restricted cash and cash equivalents included $114.6 million and $176.8 million, respectively, in restricted cash and cash equivalents held by IDT Financial Services Limited, the Company's Gibraltar-based bank. |
Debt Securities
Debt Securities | 9 Months Ended |
Apr. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities | Note 5—Debt Securities The following is a summary of available-for-sale debt securities: Amortized Cost Gross Gross Fair Value (in thousands) April 30, 2020: Certificates of deposit* $ 12,864 $ 85 $ (1 ) $ 12,948 July 31, 2019: Certificates of deposit* $ 2,234 $ — $ — $ 2,234 Municipal bonds 300 — — 300 Total $ 2,534 $ — $ — $ 2,534 * 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. Proceeds from maturities and sales of debt securities and redemptions of equity investments were $1.6 million and $0.8 million in the three months ended April 30, 2020 and 2019, respectively, and $4.3 million and $6.3 million in the nine months ended April 30, 2020 and 2019, respectively. There were no realized gains or realized losses from sales of debt securities in the three and nine months ended April 30, 2020 and 2019. The Company uses the specific identification method in computing the realized gains and realized losses on the sales of debt securities. The contractual maturities of the Company's available-for-sale debt securities at April 30, 2020 were as follows: Fair Value (in thousands) Within one year $ 11,728 After one year through five years 1,220 After five years through ten years — After ten years — Total $ 12,948 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) April 30, 2020: Certificates of deposit $ 1 $ 384 July 31, 2019: Total $ — $ — At April 30, 2020 and July 31, 2019, there were no securities in a continuous unrealized loss position for 12 months or longer. |
Equity Investments
Equity Investments | 9 Months Ended |
Apr. 30, 2020 | |
Equity Investments [Abstract] | |
Equity Investments | Note 6—Equity Investments Equity investments consist of the following: April 30, July 31, (in thousands) Zedge, Inc. Class B common stock, 42,282 shares at April 30, 2020 and July 31, 2019 $ 47 $ 68 Rafael Holdings, Inc. Class B common stock, 27,419 shares at April 30, 2020 and July 31, 2019 387 567 Mutual funds 5,282 5,053 Current equity investments $ 5,716 $ 5,688 Visa Inc. Series C Convertible Participating Preferred Stock ("Visa Series C Preferred") $ 3,633 $ 3,619 Hedge funds 4,711 5,475 Other 225 225 Noncurrent equity investments $ 8,569 $ 9,319 On June 1, 2016, the Company completed a pro rata distribution of the common stock that the Company held in the Company's subsidiary Zedge, Inc. to the Company's stockholders of record as of the close of business on May 26, 2016. The Company received Zedge and Rafael shares in connection with the lapsing of restrictions on Zedge and Rafael restricted stock held by certain of the Company's employees and the Company's payment of taxes related thereto. In June 2016, upon the acquisition of Visa Europe Limited by Visa, Inc., IDT Financial Services Limited received 1,830 shares of Visa Series C Preferred among other consideration. Each share of Visa Series C Preferred is convertible into 13.884 shares of Visa Class A common stock, subject to certain conditions, starting in June 2020 and will be convertible at the holder's option beginning in June 2028. The changes in the carrying value of the Company's equity investments without readily determinable fair values for which the Company elected the measurement alternative was as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Balance, beginning of period $ 4,345 $ 3,045 $ 3,919 $ 1,883 Adoption of change in accounting for equity investments — — — 1,213 Adjusted balance 4,345 3,045 3,919 3,096 Adjustment for observable transactions involving a similar investment from the same issuer (412 ) 599 14 550 Redemptions — — — (2 ) Impairments — — — — Balance, end of the period $ 3,933 $ 3,644 $ 3,933 $ 3,644 The Company decreased the carrying value of the 1,830 shares of Visa Series C Preferred it held by $0.4 million in the three months ended April 30, 2020, and increased the carrying value by $0.6 million in the three months ended April 30, 2019, and by $14,000 and $0.6 million in the nine months ended April 30, 2020 and 2019, respectively, based on the fair value of Visa Class A common stock and a discount for lack of current marketability. Unrealized gains and losses for all equity investments included the following: Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Net (losses) gains recognized during the period on equity investments $ (1,226 ) $ 623 $ (817 ) $ 704 Less: net gains and losses recognized during the period on equity investments redeemed during the period — — — — Unrealized (losses) gains recognized during the period on equity investments still held at the reporting date $ (1,226 ) $ 623 $ (817 ) $ 704 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7—Fair Value Measurements The following tables present the balance of assets and liabilities measured at fair value on a recurring basis: Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) April 30, 2020 Debt securities $ — $ 12,948 $ — $ 12,948 Equity investments included in current assets 5,716 — — 5,716 Equity investments included in noncurrent assets — — 3,633 3,633 Total $ 5,716 $ 12,948 $ 3,633 $ 22,297 Contingent consideration included in other noncurrent liabilities (see Note 8) $ — $ — $ 365 $ 365 July 31, 2019 Debt securities $ — $ 2,534 $ — $ 2,534 Equity investments included in current assets 5,688 — — 5,688 Equity investments included in noncurrent assets — — 3,619 3,619 Total $ 5,688 $ 2,534 $ 3,619 $ 11,841 (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 July 31, 2019, the Company did not have any liabilities measured at fair value on a recurring basis. At April 30, 2020 and July 31, 2019, the Company had $4.7 million and $5.5 million, respectively, in investments in hedge funds, which were included in noncurrent "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. 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). Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Balance, beginning of period $ 4,045 $ 2,745 $ 3,619 $ — Transfer into Level 3 from adoption of change in accounting for equity investments — — — 2,794 Total (losses) gains recognized in "Other (expense) income, net" (412 ) 599 14 550 Balance, end of period $ 3,633 $ 3,344 $ 3,633 $ 3,344 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ (412 ) $ 599 $ 14 $ 550 The following table summarizes the change in the balance of the Company's liabilities 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 nine months ended April 30, 2019. Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Balance, beginning of period $ 370 $ — $ — $ — Transfer into Level 3 from acquisition (see Note 8) — — 375 — Total losses recognized in "Foreign currency translation adjustments" (5 ) — (10 ) — Balance, end of period $ 365 $ — $ 365 $ — Change in unrealized gains or losses for the period included in earnings for liabilities held at the end of the period $ — $ — $ — $ — 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. |
Acquisitions
Acquisitions | 9 Months Ended |
Apr. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 8—Acquisitions Ringsouth Europa, S.L. On December 11, 2019, the Company's subsidiary, net2phone, Inc. acquired 100% of the outstanding shares of Ringsouth Europa, S.L. ("Ringsouth"), a business communications provider headquartered in Murcia, Spain. The acquisition expands net2phone's business into Spain. Ringsouth's operating results from the date of acquisition, which were not significant, are included in the Company's consolidated financial statements. The acquisition date fair value of the consideration consisted of the following (in thousands): Cash paid $ 450 Contingent consideration 375 Total fair value of consideration $ 825 The contingent consideration includes two potential payments to the seller of $0.4 million each, based on monthly recurring revenue targets to be achieved over a 36-month period and 48-month period. The second potential payment is not contingent upon meeting the target for the first payment. The fair value of the contingent consideration was estimated using discounted cash flow models and Monte Carlo simulations. This fair value measurement was based on significant inputs not observable in the market and therefore represents a Level 3 measurement. There was no change in the estimated fair value of the contingent consideration in the period from the acquisition date to April 30, 2020, although the balance changed due to foreign currency translation adjustments. The impact of the acquisition's preliminary purchase price allocations on the Company's consolidated balance sheet was as follows (in thousands): Trade accounts receivable $ 142 Other current assets 21 Property, plant and equipment 84 Goodwill 1,437 Non-compete agreement (4-year useful life) 50 Customer relationships (7-year useful life) 130 Tradename (2-year useful life) 30 Deferred income tax assets 118 Other assets 10 Trade accounts payable (302 ) Accrued expenses (136 ) Other current liabilities (408 ) Other liabilities (351 ) Net assets acquired $ 825 The goodwill was assigned to the net2phone segment and was attributable primarily to Ringsouth's assembled workforce and expected synergies from the business combination. The goodwill is expected to be deductible for income tax purposes. The Company's pro forma results of operations as if the Ringsouth acquisition occurred on August 1, 2018 were not materially different from the actual results of operations. Versature Corp. On September 14, 2018, the Company acquired 100% of the outstanding shares of Versature Corp., a UCaaS provider serving the Canadian market, for cash of $5.9 million. Versature's operating results from the date of acquisition, which were not significant, are included in the Company's consolidated financial statements. The Company's pro forma results of operations as if the Versature acquisition occurred on August 1, 2018 were not materially different from the actual results of operations. |
Other Operating Expense, Net
Other Operating Expense, Net | 9 Months Ended |
Apr. 30, 2020 | |
Other Operating Expense [Abstract] | |
Other Operating Expense, Net | Note 9—Other Operating Expense, Net The following table summarizes the other operating expense, net by business segment: Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Corporate—Straight Path Communications Inc. class action legal fees net of insurance proceeds $ 152 $ (120 ) $ (269 ) $ (645 ) net2phone—indemnification claim (386 ) — (920 ) — net2phone—other, net — — (63 ) 25 Telecom & Payment Services—accrual for non-income related taxes related to a foreign subsidiary — (2,300 ) (2,150 ) (5,400 ) Telecom & Payment Services—gain on sale of calling card business in Asia — — — 215 Total other operating expense, net $ (234 ) $ (2,420 ) $ (3,402 ) $ (5,805 ) Straight Path Communications Inc. Class Action 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. As discussed in Note 15, a putative class action on behalf of Straight Path's stockholders and derivative complaint was filed naming the Company, among others. The Company incurred legal fees of $1.2 million and $0.1 million in the three months ended April 30, 2020 and 2019, respectively, and $2.5 million and $0.6 million in the nine months ended April 30, 2020 and 2019, respectively, related to this action. Also, in the three and nine months ended April 30, 2020, the Company recorded a gain from insurance proceeds for this matter of $1.4 million and $2.2 million, respectively. Indemnification Claim In June 2019, as part of a commercial resolution, the Company indemnified a net2phone cable telephony customer related to patent infringement claims brought against the customer. Accrual for Non-Income Related Taxes In the fourth quarter of fiscal 2019, the Company recorded an $8.0 million accrual for non-income related taxes related to one of its foreign subsidiaries. A portion of the accrual related to each of the fiscal quarters in fiscal 2019. Accordingly, the Company corrected its consolidated financial statements for the three months ended October 31, 2018, January 31, 2019, and April 30, 2019 to include the accrued expense and the related income tax benefit. The Company has determined that the adjustments were not material to its previously issued quarterly financial statements. The impact of the correction on the Company's previously issued consolidated financial statements for the three and nine months ended April 30, 2019 was as follows: Three Months Ended April 30, 2019 Previously Reported Error Correction As Adjusted (in thousands, except per share data) Consolidated Statement of Operations: Other operating expense, net $ (120 ) $ (2,300 ) $ (2,420 ) Benefit from income taxes $ 871 $ 600 $ 1,471 Net income $ 4,157 $ (1,700 ) $ 2,457 Net income attributable to IDT Corporation $ 3,870 $ (1,700 ) $ 2,170 Earnings per share attributable to IDT Corporation common stockholders: Basic $ 0.15 $ (0.07 ) $ 0.08 Diluted $ 0.15 $ (0.07 ) $ 0.08 Nine Months Ended April 30, 2019 Previously Reported Error Correction As Adjusted (in thousands, except per share data) Consolidated Statement of Operations: Other operating expense, net $ (405 ) $ (5,400 ) $ (5,805 ) Provision for income taxes $ (2,054 ) $ 1,350 $ (704 ) Net income (loss) $ 3,498 $ (4,050 ) $ (552 ) Net income (loss) attributable to IDT Corporation $ 2,610 $ (4,050 ) $ (1,440 ) Earnings (loss) per share attributable to IDT Corporation common stockholders: Basic $ 0.10 $ (0.16 ) $ (0.06 ) Diluted $ 0.10 $ (0.16 ) $ (0.06 ) |
Equity
Equity | 9 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Equity | Note 10—Equity Stock Repurchases The Company has an existing stock repurchase program authorized by its Board of Directors for the repurchase of shares of the Company's Class B common stock. The Board of Directors authorized the repurchase of up to 8.0 million shares in the aggregate. In the nine months ended April 30, 2020, the Company repurchased 40,763 shares of Class B common stock for an aggregate purchase price of $0.2 million. In the nine months ended April 30, 2019, the Company repurchased 729,110 shares of Class B common stock for an aggregate purchase price of $3.9 million. At April 30, 2020, 6.9 million shares remained available for repurchase under the stock repurchase program. In the nine months ended April 30, 2020 and 2019, the Company paid $0.3 million and $28,000, respectively, to repurchase 37,348 and 3,748 shares, respectively, of the Company's 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 deferred stock units ("DSUs") and 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. Deferred Stock Units Equity Incentive Program The Company has an existing equity incentive program in the form of DSUs that, upon vesting, will entitle the grantees to receive shares of the Company's Class B common stock. On January 6, 2020, the first vesting date under the program, in accordance with the program and based on certain elections made by grantees, the Company issued 100,284 shares of its Class B common stock for vested DSUs. Based on those elections, vesting for 38,024 DSUs was delayed until January 5, 2021. At April 30, 2020, there were 314,516 unvested DSUs outstanding. 2015 Stock Option and Incentive Plan In the nine months ended April 30, 2020, the Company received proceeds from the exercise of stock options of $0.3 million for which the Company issued 32,551 shares of its Class B common stock. There were no stock option exercises in the nine months ended April 30, 2019. On December 12, 2019, 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 0.4 million shares. At April 30, 2020, the Company had 0.6 million shares available for future grants under its 2015 Stock Option and Incentive Plan. Fiscal 2019 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. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Apr. 30, 2020 | |
Earnings 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 Nine Months Ended 2020 2019 2020 2019 (in thousands) Basic weighted-average number of shares 26,371 26,263 26,323 24,970 Effect of dilutive securities: Stock options — — — — Non-vested restricted Class B common stock 135 — — — Diluted weighted-average number of shares 26,506 26,263 26,323 24,970 The following shares were excluded from the diluted loss per share computations: Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Stock options 1,126 1,223 1,126 1,223 Non-vested restricted Class B common stock — — 520 16 Shares excluded from the calculation of diluted earnings per share 1,126 1,223 1,646 1,239 In the three months ended April 30, 2020 and 2019, 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. The diluted loss per share equals basic loss per share in the nine months ended April 30, 2020 and 2019 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. |
Note Payable and Revolving Cred
Note Payable and Revolving Credit Loan Payable | 9 Months Ended |
Apr. 30, 2020 | |
Revolving Credit Facility [Abstract] | |
Note payable and Revolving Credit Loan Payable | Note 12—Note Payable and Revolving Credit Loan Payable Note Payable On April 20, 2020, IDT Domestic Telecom, Inc. ("IDT DT"), a subsidiary of the Company, received loan proceeds of $10.0 million (the "PPP Loan") from TD Bank, N.A, pursuant to the Paycheck Protection Program (the "PPP") under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") administered by the U.S. Small Business Administration. On April 29, 2020, IDT DT returned all $10.0 million in proceeds from the PPP Loan. In light of the oversubscription of applications for loans under the PPP, and despite IDT DT's need for the funds to support its operations, IDT DT returned the loan proceeds in order to make those funds available to other borrowers that may be in greater need than IDT DT. Revolving Credit Loan Payable As of October 31, 2019, the Company's subsidiary, IDT Telecom, Inc., 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 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, 2020. At April 30, 2020, 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 | 9 Months Ended |
Apr. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [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 Foreign Accumulated (in thousands) Balance, July 31, 2019 $ — $ (4,858 ) $ (4,858 ) Other comprehensive income (loss) attributable to IDT Corporation 84 (2,364 ) (2,280 ) Balance, April 30, 2020 $ 84 $ (7,222 ) $ (7,138 ) |
Business Segment Information
Business Segment Information | 9 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [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. The Telecom & Payment Services segment provides retail telecommunications and payment offerings as well as wholesale international long-distance traffic termination. The net2phone segment provides unified cloud communications and telephony services to business customers. 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. 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 Corporate Total Three Months Ended April 30, 2020 Revenues $ 308,790 $ 12,546 $ — $ 321,336 Income (loss) from operations 9,934 (3,932 ) (2,210 ) 3,792 Other operating expense, net — (386 ) 152 (234 ) Three Months Ended April 30, 2019 Revenues $ 328,838 $ 12,417 $ — $ 341,255 Income (loss) from operations 4,245 (1,266 ) (2,530 ) 449 Other operating expense, net (2,300 ) — (120 ) (2,420 ) Nine Months Ended April 30, 2020 Revenues $ 947,342 $ 38,083 $ — $ 985,425 Income (loss) from operations 21,441 (10,512 ) (7,207 ) 3,722 Other operating expense, net (2,150 ) (983 ) (269 ) (3,402 ) Nine Months Ended April 30, 2019 Revenues $ 1,018,637 $ 34,407 $ — $ 1,053,044 Income (loss) from operations 12,605 (4,663 ) (7,768 ) 174 Other operating expense, net (5,185 ) 25 (645 ) (5,805 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15—Commitments and Contingencies Coronavirus Disease (COVID-19) During the first and second quarters of calendar 2020, the world experienced the unprecedented impacts of the coronavirus disease 2019 (COVID-19) pandemic. There are many uncertainties regarding the impacts of the COVID-19 pandemic, and the Company is monitoring those impacts on all aspects of its business, including how it will impact its customers, employees, suppliers, vendors, and business partners. Operationally, the Company's employees transitioned to work-from-home during the fiscal quarter. In particular, the Company's salespeople and delivery employees continued to serve the Company's independent retailers and channel partners with minimal interruption. COVID-19 had a mixed financial impact on the Company during the three months ended April 30, 2020. The COVID-19 pandemic drove significant increases in demand for the Company's consumer offerings through digital channels. Conversely, sales originating through retailers and channel partners slowed in March and April before beginning to rebound in May. COVID-19 related demand helped to boost Mobile Top-Up and BOSS Revolution Money Transfer revenues and slowed the rate of decline in BOSS Revolution Calling revenues. net2phone-UCaaS' customer base growth slowed in the second half of the Company's third fiscal quarter as sales became increasingly difficult as the pandemic spread in key markets. Carrier Services' revenue was impacted by the closure of corporate offices and the decline of commerce globally. As of the date of this filing, management believes that the Company continues to have sufficient liquidity and capital resources for the foreseeable future. Looking ahead, current economic conditions, if enduring, will create additional hardship for many of the Company's customers. Over the longer term, sustained levels of high unemployment along with declining economic activity and less favorable foreign exchange market conditions could materially and adversely impact the Company by dampening demand for both its consumer and business-to-business offerings. The situation remains fluid and the Company cannot predict with certainty the potential impact of COVID-19 on its business, results of operations, financial condition and cash flows. Legal Proceedings On April 12, 2019, Scarleth Samara filed a putative class action against IDT Telecom in the U.S. District Court for the Eastern District of Louisiana alleging certain violations of the Telephone Consumer Protection Act of 1991. Plaintiff alleges that in October of 2017, IDT Telecom sent unauthorized marketing messages to her cellphone. IDT Telecom filed a motion to compel arbitration. On or about August 19, 2019, the plaintiff agreed to dismiss the pending court action and the parties intend to proceed with arbitration. At this stage, the Company is unable to estimate its potential liability, if any. The Company intends to vigorously defend the claim. On January 22, 2019, Jose Rosales filed a putative class action against IDT America, IDT Domestic Telecom and IDT International in California state court alleging certain violations of employment law. Plaintiff alleges that these companies failed to compensate members of the putative class in accordance with California law. The Company is evaluating the claims, and at this stage, is unable to estimate its potential liability, if any. The Company intends to vigorously defend the claims. In August 2019, the Company filed a cross complaint against Rosales alleging trade secret and other violations. 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 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 parties are engaged in discovery. The Company intends to vigorously defend this matter (see Note 9). At this stage, the Company is unable to estimate its potential liability, if any. 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. Sales Tax Contingency On June 21, 2018, the United States Supreme Court rendered a decision in South Dakota v. Wayfair, Inc., holding that a state may require a remote seller with no physical presence in the state to collect and remit sales tax on goods and services provided to purchasers in the state, overturning certain existing court precedent. The Company is evaluating its state tax filings with respect to the Wayfair decision and is in the process of reviewing its collection practices. It is possible that one or more jurisdictions may assert that the Company has liability for periods for which it has not collected sales, use or other similar taxes, and if such an assertion or assertions were successful it could materially and adversely affect the Company's business, financial position and operating results. One or more jurisdictions may change their laws or policies to apply their sales, use or other similar taxes to the Company's operations, and if such changes were made it could materially and adversely affect the Company's business, financial position and operating results. Regulatory Fee 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 April 30, 2020 and July 31, 2019, the Company's accrued expenses included $40.0 million and $44.7 million, respectively, for these regulatory fees for the years covered by the audit, as well as prior and subsequent years. Purchase Commitments At April 30, 2020, the Company had purchase commitments of $8.7 million, including the aggregate commitment of $5.7 million under the Memorandum of Understanding ("MOU") described below. Telecom Services Commitments In May 2019, the Company entered into a MOU with a telecom operator in Central America for among other things, termination of inbound and outbound international long-distance voice calls. The MOU is effective until June 30, 2020 unless superseded by the execution of a definitive agreement. The Company has committed to pay such telecom operator monthly committed amounts during the term of the MOU. The parties intend to draft and execute a definitive agreement as soon as practicable. In August 2017, the Company entered into a Reciprocal Services Agreement, as amended, 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. This agreement was terminated on April 30, 2020. Pursuant to the agreement, the Company deposited $9.2 million into an escrow account as security for the benefit of the telecom operator, which was included in "Other current assets" in the accompanying consolidated balance sheet based on the terms and conditions of the agreement. On May 11, 2020, the $9.2 million security deposit was released from escrow and returned to the Company. 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 April 30, 2020, the Company had aggregate performance bonds of $18.0 million outstanding. Company 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 April 30, 2020 and July 31, 2019, "Cash and cash equivalents" in the Company's consolidated balance sheets included an aggregate of $6.6 million and $13.2 million, respectively, held by IDT Payment Services that was unavailable for other purposes. FCC Investigation of Straight Path Spectrum LLC 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 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 (Expense) Income, Net
Other (Expense) Income, Net | 9 Months Ended |
Apr. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other (Expense) Income, Net | Note 16—Other (Expense) Income, Net Other (expense) income, net consists of the following: Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Foreign currency transaction (losses) gains $ (774 ) $ (3 ) $ 175 $ (838 ) (Loss) gain on investments (1,226 ) 623 (817 ) 704 Other (144 ) (260 ) (718 ) (360 ) Total other (expense) income, net $ (2,144 ) $ 360 $ (1,360 ) $ (494 ) |
Defined Contribution Plan
Defined Contribution Plan | 9 Months Ended |
Apr. 30, 2020 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | Note 17—Defined Contribution Plan The Company maintains a 401(k) Plan available to all employees meeting certain eligibility criteria. The Plan permits participants to contribute up to 20% of their salary, not to exceed the limits established by the Internal Revenue Code. The Plan provides for discretionary matching contributions of 50%, up to the first 6% of compensation. The discretionary matching contributions vest over the first five years of employment. The Plan permits the discretionary matching contributions to be granted as of December 31 of each year. All contributions made by participants vest immediately into the participant's account. On April 23, 2020, the Company paid cash of $1.0 million for calendar year 2019 matching contributions. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards Not Yet Adopted | 9 Months Ended |
Apr. 30, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards Not Yet Adopted | Note 18—Recently Issued Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments, In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes, In January 2020, the FASB issued ASU No. 2020-01, Investments—Equity Securities (Topic 321) Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of revenues disaggregated by business segment and service offered to customers | Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Core Operations: BOSS Revolution Calling $ 111,541 $ 120,455 $ 340,557 $ 366,114 Carrier Services 87,306 120,955 302,482 391,073 Mobile Top-Up 85,109 67,567 237,741 197,189 Other 10,127 12,202 32,484 43,730 Growth 14,707 7,659 34,078 20,531 Total Telecom & Payment Services 308,790 328,838 947,342 1,018,637 net2phone-UCaaS 8,137 6,651 23,298 17,483 net2phone-Platform Services 4,409 5,766 14,785 16,924 Total net2phone 12,546 12,417 38,083 34,407 Total $ 321,336 $ 341,255 $ 985,425 $ 1,053,044 |
Schedule of revenues disaggregated by geographic region | (in thousands) Telecom & Payment Services net2phone Total Three Months Ended April 30, 2020 United States $ 216,310 $ 8,344 $ 224,654 Outside the United States: United Kingdom 26,360 3 26,363 Netherlands 52,237 — 52,237 Other 13,883 4,199 18,082 Total outside the United States 92,480 4,202 96,682 Total $ 308,790 $ 12,546 $ 321,336 (in thousands) Telecom & Payment Services net2phone Total Three Months Ended April 30, 2019 United States $ 216,271 $ 8,833 $ 225,104 Outside the United States: United Kingdom 44,476 3 44,479 Netherlands 48,817 — 48,817 Other 19,274 3,581 22,855 Total outside the United States 112,567 3,584 116,151 Total $ 328,838 $ 12,417 $ 341,255 (in thousands) Telecom & Payment Services net2phone Total Nine Months Ended April 30, 2020 United States $ 645,909 $ 25,452 $ 671,361 Outside the United States: United Kingdom 98,304 10 98,314 Netherlands 156,870 — 156,870 Other 46,259 12,621 58,880 Total outside the United States 301,433 12,631 314,064 Total $ 947,342 $ 38,083 $ 985,425 (in thousands) Telecom & Payment Services net2phone Total Nine Months Ended April 30, 2019 United States $ 673,141 $ 24,857 $ 697,998 Outside the United States: United Kingdom 143,887 19 143,906 Netherlands 147,796 — 147,796 Other 53,813 9,531 63,344 Total outside the United States 345,496 9,550 355,046 Total $ 1,018,637 $ 34,407 $ 1,053,044 |
Schedule of information about contract liability balance | Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period $ 23,600 $ 25,282 $ 31,306 $ 30,363 |
Schedule of deferred customer contract acquisition costs | April 30, July 31, (in thousands) Deferred customer contract acquisition costs included in "Other current assets" $ 2,156 $ 1,474 Deferred customer contract acquisition costs included in "Other assets" 2,162 1,716 Total $ 4,318 $ 3,190 |
Schedule of amortization of deferred customer contract acquisition costs | Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Amortization of deferred customer contract acquisition costs $ 616 $ 466 $ 1,781 $ 1,218 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Schedule of supplemental disclosures related to the Company's operating leases | Three Months Nine Months (in thousands) Operating lease cost $ 707 $ 2,130 Short-term lease cost 66 198 Total lease cost $ 773 $ 2,328 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 687 $ 2,056 April 30, Weighted-average remaining lease term-operating leases 4.4 years Weighted-average discount rate-operating leases 3.12 % |
Schedule of aggregate operating lease liability | April 30, (in thousands) Operating lease liabilities included in "Other current liabilities" $ 2,400 Operating lease liabilities included in noncurrent liabilities 8,109 Total $ 10,509 |
Schedule of future minimum maturities of operating lease liabilities | Twelve-month period (in thousands) 2021 $ 2,691 2022 2,566 2023 2,237 2024 1,861 2025 1,896 Thereafter 41 Total lease payments 11,292 Less imputed interest (783 ) Total operating lease liabilities $ 10,509 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Schedule of cash, cash equivalents, and restricted cash and cash equivalents | April 30, July 31, (in thousands) Cash and cash equivalents $ 51,786 $ 80,168 Restricted cash and cash equivalents 114,667 177,031 Total cash, cash equivalents, and restricted cash and cash equivalents $ 166,453 $ 257,199 |
Debt Securities (Tables)
Debt Securities (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of marketable debt securities | Amortized Cost Gross Gross Fair Value (in thousands) April 30, 2020: Certificates of deposit* $ 12,864 $ 85 $ (1 ) $ 12,948 July 31, 2019: Certificates of deposit* $ 2,234 $ — $ — $ 2,234 Municipal bonds 300 — — 300 Total $ 2,534 $ — $ — $ 2,534 * 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. |
Schedule of available-for-sale debt securities | Fair Value (in thousands) Within one year $ 11,728 After one year through five years 1,220 After five years through ten years — After ten years — Total $ 12,948 |
Schedule of available-for-sale debt securities, unrealized loss position | Unrealized Losses Fair Value (in thousands) April 30, 2020: Certificates of deposit $ 1 $ 384 July 31, 2019: Total $ — $ — |
Equity Investments (Tables)
Equity Investments (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Equity Investments [Abstract] | |
Schedule of equity investments | April 30, July 31, (in thousands) Zedge, Inc. Class B common stock, 42,282 shares at April 30, 2020 and July 31, 2019 $ 47 $ 68 Rafael Holdings, Inc. Class B common stock, 27,419 shares at April 30, 2020 and July 31, 2019 387 567 Mutual funds 5,282 5,053 Current equity investments $ 5,716 $ 5,688 Visa Inc. Series C Convertible Participating Preferred Stock ("Visa Series C Preferred") $ 3,633 $ 3,619 Hedge funds 4,711 5,475 Other 225 225 Noncurrent equity investments $ 8,569 $ 9,319 |
Schedule of carrying value of equity investments | Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Balance, beginning of period $ 4,345 $ 3,045 $ 3,919 $ 1,883 Adoption of change in accounting for equity investments — — — 1,213 Adjusted balance 4,345 3,045 3,919 3,096 Adjustment for observable transactions involving a similar investment from the same issuer (412 ) 599 14 550 Redemptions — — — (2 ) Impairments — — — — Balance, end of the period $ 3,933 $ 3,644 $ 3,933 $ 3,644 |
Schedule of unrealized gains and losses for all equity investments | Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Net (losses) gains recognized during the period on equity investments $ (1,226 ) $ 623 $ (817 ) $ 704 Less: net gains and losses recognized during the period on equity investments redeemed during the period — — — — Unrealized (losses) gains recognized during the period on equity investments still held at the reporting date $ (1,226 ) $ 623 $ (817 ) $ 704 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of balance of assets measured at fair value on a recurring basis | Level 1 (1) Level 2 (2) Level 3 (3) Total (in thousands) April 30, 2020 Debt securities $ — $ 12,948 $ — $ 12,948 Equity investments included in current assets 5,716 — — 5,716 Equity investments included in noncurrent assets — — 3,633 3,633 Total $ 5,716 $ 12,948 $ 3,633 $ 22,297 Contingent consideration included in other noncurrent liabilities (see Note 8) $ — $ — $ 365 $ 365 July 31, 2019 Debt securities $ — $ 2,534 $ — $ 2,534 Equity investments included in current assets 5,688 — — 5,688 Equity investments included in noncurrent assets — — 3,619 3,619 Total $ 5,688 $ 2,534 $ 3,619 $ 11,841 (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 |
Schedule of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Balance, beginning of period $ 4,045 $ 2,745 $ 3,619 $ — Transfer into Level 3 from adoption of change in accounting for equity investments — — — 2,794 Total (losses) gains recognized in "Other (expense) income, net" (412 ) 599 14 550 Balance, end of period $ 3,633 $ 3,344 $ 3,633 $ 3,344 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ (412 ) $ 599 $ 14 $ 550 |
Schedule of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Balance, beginning of period $ 370 $ — $ — $ — Transfer into Level 3 from acquisition (see Note 8) — — 375 — Total losses recognized in "Foreign currency translation adjustments" (5 ) — (10 ) — Balance, end of period $ 365 $ — $ 365 $ — Change in unrealized gains or losses for the period included in earnings for liabilities held at the end of the period $ — $ — $ — $ — |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of acquisition date fair value of consideration | Cash paid $ 450 Contingent consideration 375 Total fair value of consideration $ 825 |
Schedule of impact of the acquisition's preliminary purchase price allocations on consolidated balance sheet | Trade accounts receivable $ 142 Other current assets 21 Property, plant and equipment 84 Goodwill 1,437 Non-compete agreement (4-year useful life) 50 Customer relationships (7-year useful life) 130 Tradename (2-year useful life) 30 Deferred income tax assets 118 Other assets 10 Trade accounts payable (302 ) Accrued expenses (136 ) Other current liabilities (408 ) Other liabilities (351 ) Net assets acquired $ 825 |
Other Operating Expense, Net (T
Other Operating Expense, Net (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Other Operating Expense [Abstract] | |
Schedule of other operating gains (expense) | Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Corporate—Straight Path Communications Inc. class action legal fees net of insurance proceeds $ 152 $ (120 ) $ (269 ) $ (645 ) net2phone—indemnification claim (386 ) — (920 ) — net2phone—other, net — — (63 ) 25 Telecom & Payment Services—accrual for non-income related taxes related to a foreign subsidiary — (2,300 ) (2,150 ) (5,400 ) Telecom & Payment Services—gain on sale of calling card business in Asia — — — 215 Total other operating expense, net $ (234 ) $ (2,420 ) $ (3,402 ) $ (5,805 ) |
Schedule of correction on the Company's previously issued consolidated financial statements | Three Months Ended April 30, 2019 Previously Reported Error Correction As Adjusted (in thousands, except per share data) Consolidated Statement of Operations: Other operating expense, net $ (120 ) $ (2,300 ) $ (2,420 ) Benefit from income taxes $ 871 $ 600 $ 1,471 Net income $ 4,157 $ (1,700 ) $ 2,457 Net income attributable to IDT Corporation $ 3,870 $ (1,700 ) $ 2,170 Earnings per share attributable to IDT Corporation common stockholders: Basic $ 0.15 $ (0.07 ) $ 0.08 Diluted $ 0.15 $ (0.07 ) $ 0.08 Nine Months Ended April 30, 2019 Previously Reported Error Correction As Adjusted (in thousands, except per share data) Consolidated Statement of Operations: Other operating expense, net $ (405 ) $ (5,400 ) $ (5,805 ) Provision for income taxes $ (2,054 ) $ 1,350 $ (704 ) Net income (loss) $ 3,498 $ (4,050 ) $ (552 ) Net income (loss) attributable to IDT Corporation $ 2,610 $ (4,050 ) $ (1,440 ) Earnings (loss) per share attributable to IDT Corporation common stockholders: Basic $ 0.10 $ (0.16 ) $ (0.06 ) Diluted $ 0.10 $ (0.16 ) $ (0.06 ) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Earnings 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 Nine Months Ended 2020 2019 2020 2019 (in thousands) Basic weighted-average number of shares 26,371 26,263 26,323 24,970 Effect of dilutive securities: Stock options — — — — Non-vested restricted Class B common stock 135 — — — Diluted weighted-average number of shares 26,506 26,263 26,323 24,970 |
Schedule of shares excluded from the diluted earnings per share | Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Stock options 1,126 1,223 1,126 1,223 Non-vested restricted Class B common stock — — 520 16 Shares excluded from the calculation of diluted earnings per share 1,126 1,223 1,646 1,239 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated balances for each classification of other comprehensive loss | Unrealized Foreign Accumulated (in thousands) Balance, July 31, 2019 $ — $ (4,858 ) $ (4,858 ) Other comprehensive income (loss) attributable to IDT Corporation 84 (2,364 ) (2,280 ) Balance, April 30, 2020 $ 84 $ (7,222 ) $ (7,138 ) |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of operating results of business segments | (in thousands) Telecom net2phone Corporate Total Three Months Ended April 30, 2020 Revenues $ 308,790 $ 12,546 $ — $ 321,336 Income (loss) from operations 9,934 (3,932 ) (2,210 ) 3,792 Other operating expense, net — (386 ) 152 (234 ) Three Months Ended April 30, 2019 Revenues $ 328,838 $ 12,417 $ — $ 341,255 Income (loss) from operations 4,245 (1,266 ) (2,530 ) 449 Other operating expense, net (2,300 ) — (120 ) (2,420 ) Nine Months Ended April 30, 2020 Revenues $ 947,342 $ 38,083 $ — $ 985,425 Income (loss) from operations 21,441 (10,512 ) (7,207 ) 3,722 Other operating expense, net (2,150 ) (983 ) (269 ) (3,402 ) Nine Months Ended April 30, 2019 Revenues $ 1,018,637 $ 34,407 $ — $ 1,053,044 Income (loss) from operations 12,605 (4,663 ) (7,768 ) 174 Other operating expense, net (5,185 ) 25 (645 ) (5,805 ) |
Other (Expense) Income, Net (Ta
Other (Expense) Income, Net (Tables) | 9 Months Ended |
Apr. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other (expense) income, net | Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands) Foreign currency transaction (losses) gains $ (774 ) $ (3 ) $ 175 $ (838 ) (Loss) gain on investments (1,226 ) 623 (817 ) 704 Other (144 ) (260 ) (718 ) (360 ) Total other (expense) income, net $ (2,144 ) $ 360 $ (1,360 ) $ (494 ) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenue from External Customer [Line Items] | ||||
Revenues, Total | $ 321,336 | $ 341,255 | $ 985,425 | $ 1,053,044 |
Total Telecom & Payment Services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 308,790 | 328,838 | 947,342 | 1,018,637 |
Total Telecom & Payment Services [Member] | BOSS Revolution Calling [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 111,541 | 120,455 | 340,557 | 366,114 |
Total Telecom & Payment Services [Member] | Carrier Services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 87,306 | 120,955 | 302,482 | 391,073 |
Total Telecom & Payment Services [Member] | Mobile Top-Up [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 85,109 | 67,567 | 237,741 | 197,189 |
Total Telecom & Payment Services [Member] | Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 10,127 | 12,202 | 32,484 | 43,730 |
Total Telecom & Payment Services [Member] | Growth [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 14,707 | 7,659 | 34,078 | 20,531 |
Total net2phone [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 12,546 | 12,417 | 38,083 | 34,407 |
Total net2phone [Member] | net2phone-UCaaS [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 8,137 | 6,651 | 23,298 | 17,483 |
Total net2phone [Member] | Net2phone-Platform Services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | $ 4,409 | $ 5,766 | $ 14,785 | $ 16,924 |
Revenue Recognition (Details 1)
Revenue Recognition (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Outside the United States: | ||||
Total outside the United States | $ 96,682 | $ 116,151 | $ 314,064 | $ 355,046 |
Revenues, Total | 321,336 | 341,255 | 985,425 | 1,053,044 |
United States [Member] | ||||
Outside the United States: | ||||
Revenues, Total | 224,654 | 225,104 | 671,361 | 697,998 |
United Kingdom [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 26,363 | 44,479 | 98,314 | 143,906 |
Netherlands [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 52,237 | 48,817 | 156,870 | 147,796 |
Other [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 18,082 | 22,855 | 58,880 | 63,344 |
Telecom & Payment Services [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 92,480 | 112,567 | 301,433 | 345,496 |
Revenues, Total | 308,790 | 328,838 | 947,342 | 1,018,637 |
Telecom & Payment Services [Member] | United States [Member] | ||||
Outside the United States: | ||||
Revenues, Total | 216,310 | 216,271 | 645,909 | 673,141 |
Telecom & Payment Services [Member] | United Kingdom [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 26,360 | 44,476 | 98,304 | 143,887 |
Telecom & Payment Services [Member] | Netherlands [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 52,237 | 48,817 | 156,870 | 147,796 |
Telecom & Payment Services [Member] | Other [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 13,883 | 19,274 | 46,259 | 53,813 |
net2phone [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 4,202 | 3,584 | 12,631 | 9,550 |
Revenues, Total | 12,546 | 12,417 | 38,083 | 34,407 |
net2phone [Member] | United States [Member] | ||||
Outside the United States: | ||||
Revenues, Total | 8,344 | 8,833 | 25,452 | 24,857 |
net2phone [Member] | United Kingdom [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 3 | 3 | 10 | 19 |
net2phone [Member] | Netherlands [Member] | ||||
Outside the United States: | ||||
Total outside the United States | ||||
net2phone [Member] | Other [Member] | ||||
Outside the United States: | ||||
Total outside the United States | $ 4,199 | $ 3,581 | $ 12,621 | $ 9,531 |
Revenue Recognition (Details 2)
Revenue Recognition (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Contract Liabilities [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period | $ 23,600 | $ 25,282 | $ 31,306 | $ 30,363 |
Revenue Recognition (Details 3)
Revenue Recognition (Details 3) - USD ($) $ in Thousands | Apr. 30, 2020 | Jul. 31, 2019 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Deferred customer contract acquisition costs included in "Other current assets" | $ 2,156 | $ 1,474 |
Deferred customer contract acquisition costs included in "Other assets" | 2,162 | 1,716 |
Total | $ 4,318 | $ 3,190 |
Revenue Recognition (Details 4)
Revenue Recognition (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||||
Amortization of deferred customer contract acquisition costs | $ 616 | $ 466 | $ 1,781 | $ 1,218 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Apr. 30, 2020USD ($) | Apr. 30, 2020USD ($) | |
Leases [Abstract] | ||
Operating lease cost | $ 707 | $ 2,130 |
Short-term lease cost | 66 | 198 |
Total lease cost | 773 | 2,328 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 687 | $ 2,056 |
Weighted-average remaining lease term-operating leases | 4 years 4 months 24 days | 4 years 4 months 24 days |
Weighted-average discount rate-operating leases | 3.12% | 3.12% |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Thousands | Apr. 30, 2020 | Jul. 31, 2019 |
Leases [Abstract] | ||
Operating lease liabilities included in "Other current liabilities" | $ 2,400 | |
Operating lease liabilities included in noncurrent liabilities | 8,109 | |
Total | $ 10,509 |
Leases (Details 2)
Leases (Details 2) $ in Thousands | Apr. 30, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract] | |
2021 | $ 2,691 |
2022 | 2,566 |
2023 | 2,237 |
2024 | 1,861 |
2025 | 1,896 |
Thereafter | 41 |
Total lease payments | 11,292 |
Less imputed interest | (783) |
Total operating lease liabilities | $ 10,509 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | |
Rafael Holdings Inc [Member] | |||||
Leases (Textual) | |||||
Lease costs | $ 500 | $ 500 | $ 1,400 | $ 1,300 | |
Accounting Standards Update 2016-02 [Member] | |||||
Leases (Textual) | |||||
ASU 2016-02 Adoption | $ 12,400 | ||||
Israel [Member] | |||||
Leases (Textual) | |||||
Lease expires | Jul. 31, 2025 | ||||
Newark Lease [Member] | |||||
Leases (Textual) | |||||
Lease expires | Apr. 30, 2025 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jul. 31, 2019 | Apr. 30, 2019 | Jul. 31, 2018 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 51,786 | $ 80,168 | ||
Restricted cash and cash equivalents | 114,667 | 177,031 | ||
Total cash, cash equivalents, and restricted cash and cash equivalents | $ 166,453 | $ 257,199 | $ 242,174 | $ 203,197 |
Cash, Cash Equivalents, and R_4
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details Textual) - USD ($) $ in Thousands | Apr. 30, 2020 | Jul. 31, 2019 |
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Textual) | ||
Restricted cash and cash equivalents | $ 114,667 | $ 177,031 |
IDT Financial Services Limited [Member] | ||
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Textual) | ||
Restricted cash and cash equivalents | $ 114,600 | $ 176,800 |
Debt Securities (Details)
Debt Securities (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jul. 31, 2019 | |
Available-for-sale debt securities: | |||
Amortized Cost | $ 2,534 | ||
Gross Unrealized Gains | |||
Gross Unrealized Losses | |||
Fair Value | $ 12,948 | 2,534 | |
Certificates of deposit [Member] | |||
Available-for-sale debt securities: | |||
Amortized Cost | [1] | 12,864 | 2,234 |
Gross Unrealized Gains | 85 | ||
Gross Unrealized Losses | (1) | ||
Fair Value | [1] | $ 12,948 | 2,234 |
Municipal bonds [Member] | |||
Available-for-sale debt securities: | |||
Amortized Cost | 300 | ||
Gross Unrealized Gains | |||
Gross Unrealized Losses | |||
Fair Value | $ 300 | ||
[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 | Apr. 30, 2020USD ($) |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling Maturity, Fair Value [Abstract] | |
Within one year | $ 11,728 |
After one year through five years | 1,220 |
After five years through ten years | |
After ten years | |
Total | $ 12,948 |
Debt Securities (Details 2)
Debt Securities (Details 2) - USD ($) $ in Thousands | Apr. 30, 2020 | Jul. 31, 2019 |
Available-for-sale debt securities unrealized loss position: | ||
Certificates of deposit | ||
Fair Value | ||
Certificates of deposit [Member] | ||
Available-for-sale debt securities unrealized loss position: | ||
Certificates of deposit | $ 1 | |
Fair Value | $ 384 |
Debt Securities (Details Textua
Debt Securities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Debt Securities (Textual) | ||||
Proceeds from maturities and sales of available-for-sale securities | $ 1,600 | $ 800 | $ 4,300 | $ 6,300 |
Realized losses from sales of available-for-sale debt securities | ||||
Realized gains from sales of available-for-sale debt securities |
Equity Investments (Details)
Equity Investments (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jul. 31, 2019 |
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Current equity investments | $ 5,716 | $ 5,688 |
Noncurrent equity investments | 8,569 | 9,319 |
Other [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Noncurrent equity investments | 225 | 225 |
Mutual funds [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Current equity investments | 5,282 | 5,053 |
Hedge Funds [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Noncurrent equity investments | 4,711 | 5,475 |
Visa Series C Preferred [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Noncurrent equity investments | 3,633 | 3,619 |
Zedge, Inc. [Member] | Common Stock Class B [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Current equity investments | 47 | 68 |
Rafael Holdings, Inc [Member] | Common Stock Class B [Member] | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Current equity investments | $ 387 | $ 567 |
Equity Investments (Details 1)
Equity Investments (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Equity Investments [Abstract] | ||||
Balance, beginning of period | $ 4,345 | $ 3,045 | $ 3,919 | $ 1,883 |
Adoption of change in accounting for equity investments | 1,213 | |||
Adjusted balance | 4,345 | 3,045 | 3,919 | 3,096 |
Adjustment for observable transactions involving a similar investment from the same issuer | (412) | 599 | 14 | 550 |
Redemptions | (2) | |||
Impairments | ||||
Balance, end of the period | $ 3,933 | $ 3,644 | $ 3,933 | $ 3,644 |
Equity Investments (Details 2)
Equity Investments (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Equity Securities, FV-NI, Gain (Loss) [Abstract] | ||||
Net (losses) gains recognized during the period on equity investments | $ (1,226) | $ 623 | $ (817) | $ 704 |
Less: net gains and losses recognized during the period on equity investments redeemed during the period | ||||
Unrealized (losses) gains recognized during the period on equity investments still held at the reporting date | $ (1,226) | $ 623 | $ (817) | $ 704 |
Equity Investments (Details Tex
Equity Investments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Jul. 31, 2019 | Jun. 30, 2016 | |
Equity Investments (Textual) | ||||||
Shares owned fair value | $ (412) | $ 599 | $ 14 | $ 550 | ||
Common Stock Class B [Member] | Zedge Inc [Member] | ||||||
Equity Investments (Textual) | ||||||
Shares of common stock | 42,282 | 42,282 | ||||
Common Stock Class B [Member] | Rafael Holdings Inc [Member] | ||||||
Equity Investments (Textual) | ||||||
Shares of common stock | 27,419 | 27,419 | ||||
Visa Series C Preferred [Member] | ||||||
Equity Investments (Textual) | ||||||
Owned shares | 1,830 | 1,830 | 1,830 | 1,830 | 1,830 | |
Shares owned fair value | $ (400) | $ 600 | $ 14 | $ 600 | ||
Convertible shares | 13.884 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jul. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities | $ 12,948 | $ 2,534 | |
Equity investments included in current assets | 5,716 | 5,688 | |
Equity investments included in noncurrent assets | 3,633 | 3,619 | |
Total | 22,297 | 11,841 | |
Contingent consideration included in other noncurrent liabilities (see Note 8) | 365 | ||
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] | ||
Equity investments included in current assets | [1] | 5,716 | 5,688 |
Equity investments included in noncurrent assets | [1] | ||
Total | [1] | 5,716 | 5,688 |
Contingent consideration included in other noncurrent liabilities (see Note 8) | [1] | ||
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] | 12,948 | 2,534 |
Equity investments included in current assets | [2] | ||
Equity investments included in noncurrent assets | [2] | ||
Total | [2] | 12,948 | 2,534 |
Contingent consideration included in other noncurrent liabilities (see Note 8) | [2] | ||
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 investments included in current assets | [3] | ||
Equity investments included in noncurrent assets | [3] | 3,633 | 3,619 |
Total | [3] | 3,633 | $ 3,619 |
Contingent consideration included in other noncurrent liabilities (see Note 8) | [3] | $ 365 | |
[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 | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | $ 4,045 | $ 2,745 | $ 3,619 | |
Transfer into Level 3 from adoption of change in accounting for equity investments | 2,794 | |||
Total (losses) gains recognized in "Other (expense) income, net" | (412) | 599 | 14 | 550 |
Balance, end of period | 3,633 | 3,344 | 3,633 | 3,344 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period | $ (412) | $ 599 | $ 14 | $ 550 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details 2) - Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | $ 370 | |||
Transfer into Level 3 from acquisition (see Note 8) | 375 | |||
Total losses recognized in "Foreign currency translation adjustments" | (5) | (10) | ||
Balance, end of period | 365 | 365 | ||
Change in unrealized gains or losses for the period included in earnings for liabilities held at the end of the period |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Apr. 30, 2020 | Jul. 31, 2019 |
Fair Value Measurements (Textual) | ||
Fair value of investments in hedge funds | $ 4,700 | $ 5,500 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 9 Months Ended |
Apr. 30, 2020USD ($) | |
Business Combinations [Abstract] | |
Cash paid | $ 450 |
Contingent consideration | 375 |
Total fair value of consideration | $ 825 |
Acquisitions (Details 1)
Acquisitions (Details 1) $ in Thousands | Apr. 30, 2020USD ($) |
Business Combinations [Abstract] | |
Trade accounts receivable | $ 142 |
Other current assets | 21 |
Property, plant and equipment | 84 |
Goodwill | 1,437 |
Non-compete agreement (4-year useful life) | 50 |
Customer relationships (7-year useful life) | 130 |
Tradename (2-year useful life) | 30 |
Deferred income tax assets | 118 |
Other assets | 10 |
Trade accounts payable | (302) |
Accrued expenses | (136) |
Other current liabilities | (408) |
Other liabilities | (351) |
Net assets acquired | $ 825 |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - USD ($) $ in Thousands | Sep. 14, 2018 | Apr. 30, 2020 | Dec. 11, 2019 |
Acquisitions (Textual) | |||
Cash paid | $ 450 | ||
Contingent consideration, description | The contingent consideration includes two potential payments to the seller of $0.4 million each, based on monthly recurring revenue targets to be achieved over a 36-month period and 48-month period. | ||
Versature Corp. [Member] | |||
Acquisitions (Textual) | |||
Cash paid | $ 5,900 | ||
Acquired outstanding shares percentage | 100.00% | ||
Ringsouth Europa, S.L. [Member] | |||
Acquisitions (Textual) | |||
Acquired outstanding shares percentage | 100.00% |
Other Operating Expense, Net (D
Other Operating Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Other Operating Expense [Abstract] | ||||
Corporate-Straight Path Communications Inc. class action legal fees net of insurance proceeds | $ 152 | $ (120) | $ (269) | $ (645) |
net2phone-indemnification claim and other, net | (386) | (920) | ||
net2phone-other, net | (63) | 25 | ||
Telecom & Payment Services-accrual for non-income related taxes related to a foreign subsidiary | (2,300) | (2,150) | (5,400) | |
Telecom & Payment Services-gain on sale of calling card business in Asia | 215 | |||
Total other operating expense, net | $ (234) | $ (2,420) | $ (3,402) | $ (5,805) |
Other Operating Expense, Net _2
Other Operating Expense, Net (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Other operating expense, net | $ (234) | $ (2,420) | $ (3,402) | $ (5,805) |
Provision/Benefit for income taxes | (1,319) | 1,471 | (3,020) | (704) |
Net income (loss) | 385 | 2,457 | (133) | (552) |
Net income (loss) attributable to IDT Corporation | $ 518 | $ 2,170 | $ (63) | $ (1,440) |
Earnings (loss) per share attributable to IDT Corporation common stockholders: | ||||
Basic | $ 0.02 | $ 0.08 | $ 0 | $ (0.06) |
Diluted | $ 0.02 | $ 0.08 | $ 0 | $ (0.06) |
Error Correction [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Other operating expense, net | $ (2,300) | $ (5,400) | ||
Provision/Benefit for income taxes | 600 | 1,350 | ||
Net income (loss) | (1,700) | (4,050) | ||
Net income (loss) attributable to IDT Corporation | $ (1,700) | $ (4,050) | ||
Earnings (loss) per share attributable to IDT Corporation common stockholders: | ||||
Basic | $ (0.07) | $ (0.16) | ||
Diluted | $ (0.07) | $ (0.16) | ||
Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Other operating expense, net | $ (120) | $ (405) | ||
Provision/Benefit for income taxes | 871 | (2,054) | ||
Net income (loss) | 4,157 | 3,498 | ||
Net income (loss) attributable to IDT Corporation | $ 3,870 | $ 2,610 | ||
Earnings (loss) per share attributable to IDT Corporation common stockholders: | ||||
Basic | $ 0.15 | $ 0.1 | ||
Diluted | $ 0.15 | $ 0.1 | ||
As Adjusted [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Other operating expense, net | $ (2,420) | $ (5,805) | ||
Provision/Benefit for income taxes | 1,471 | (704) | ||
Net income (loss) | 2,457 | (552) | ||
Net income (loss) attributable to IDT Corporation | $ 2,170 | $ (1,440) | ||
Earnings (loss) per share attributable to IDT Corporation common stockholders: | ||||
Basic | $ 0.08 | $ (0.06) | ||
Diluted | $ 0.08 | $ (0.06) |
Other Operating Expense, Net _3
Other Operating Expense, Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Other Operating Expense, Net (Textual) | ||||
Accrual for non-income related taxes | $ 8,000 | $ 8,000 | ||
Straight Path [Member] | ||||
Other Operating Expense, Net (Textual) | ||||
Recorded insurance proceeds | $ 1,400 | $ 2,200 | ||
Legal fees | $ 1,200 | $ 100 | $ 2,500 | $ 600 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 06, 2020 | Dec. 12, 2019 | Dec. 21, 2018 | May 31, 2018 | Apr. 16, 2018 | Apr. 30, 2020 | Apr. 30, 2019 |
Equity (Textual) | |||||||
Proceeds from the exercise of stock options | $ 276 | ||||||
Aggregate purchase price | $ 13,272 | ||||||
Common Stock Class B [Member] | |||||||
Equity (Textual) | |||||||
Repurchase of aggregate shares | 8,000,000 | ||||||
Class B common stock shares repurchased | 40,763 | 729,110 | |||||
Aggregate purchase price of shares repurchased | $ 200 | $ 3,900 | |||||
Shares remained available for repurchase under the stock repurchase program | 6,900,000 | ||||||
Class B common stock for vested shares | 100,284 | ||||||
Shares available for future grants | 600,000 | ||||||
Common Stock Class B [Member] | Howard S. Jonas [Member] | |||||||
Equity (Textual) | |||||||
Agreed to purchase shares of common stock | 2,546,689 | 2,546,689 | |||||
Aggregate purchase price | $ 14,800 | $ 1,500 | |||||
Class B common stock at a price per share | $ 5.89 | ||||||
Purchase price reduced | $ 200 | ||||||
Common Stock Class B [Member] | 2015 Stock Option and Incentive Plan [Member] | |||||||
Equity (Textual) | |||||||
Number of common stock available for grant of awards | 400,000 | ||||||
Proceeds from the exercise of stock options | $ 300 | ||||||
Proceeds from the exercise of stock options, shares | 32,551 | ||||||
Common Stock Class B [Member] | Deferred Stock Units [Member] | |||||||
Equity (Textual) | |||||||
Vesting for DSUs | 38,024 | ||||||
Unvested DSUs outstanding | 314,516 | ||||||
Common Stock Class B [Member] | Employess [Member] | |||||||
Equity (Textual) | |||||||
Class B common stock shares repurchased | 37,348 | 3,748 | |||||
Aggregate purchase price of shares repurchased | $ 300 | $ 28 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average number of shares | 26,371 | 26,263 | 26,323 | 24,970 |
Effect of dilutive securities: | ||||
Stock options | ||||
Non-vested restricted Class B common stock | 135 | |||
Diluted weighted-average number of shares | 26,506 | 26,263 | 26,323 | 24,970 |
Earnings (Loss) Per Share (De_2
Earnings (Loss) Per Share (Details 1) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Shares were excluded from the diluted earnings per share computations | ||||
Shares excluded from the calculation of diluted earnings per share | 1,126 | 1,223 | 1,646 | 1,239 |
Stock options [Member] | ||||
Shares were excluded from the diluted earnings per share computations | ||||
Shares excluded from the calculation of diluted earnings per share | 1,126 | 1,223 | 1,126 | 1,223 |
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 | 520 | 16 |
Note Payable and Revolving Cr_2
Note Payable and Revolving Credit Loan Payable (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Oct. 31, 2019 | |
Note Payable and Revolving Credit Loan Payable (Textual) | |||
Maximum principal amount of credit agreement | $ 25,000 | ||
Unused outstanding amount | $ 25,000 | ||
Line of credit maturity date | Jul. 15, 2020 | ||
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. | ||
Received loan proceeds | $ 10,000 | ||
Returned proceeds from loan | $ 10,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Schedule of accumulated balances for each classification of other comprehensive loss | ||||
Beginning balance | $ (4,858) | |||
Other comprehensive income (loss) attributable to IDT Corporation | $ (563) | $ (10) | (2,280) | $ 474 |
Ending balance | (7,138) | (7,138) | ||
Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive loss | ||||
Beginning balance | ||||
Other comprehensive income (loss) attributable to IDT Corporation | 84 | |||
Ending balance | 84 | 84 | ||
Foreign Currency Translation [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive loss | ||||
Beginning balance | (4,858) | |||
Other comprehensive income (loss) attributable to IDT Corporation | (2,364) | |||
Ending balance | (7,222) | (7,222) | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Schedule of accumulated balances for each classification of other comprehensive loss | ||||
Beginning balance | (4,858) | |||
Other comprehensive income (loss) attributable to IDT Corporation | (2,280) | |||
Ending balance | $ (7,138) | $ (7,138) |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 321,336 | $ 341,255 | $ 985,425 | $ 1,053,044 |
Income (loss) from operations | 3,792 | 449 | 3,722 | 174 |
Other operating expense, net | (234) | (2,420) | (3,402) | (5,805) |
Operating Segments [Member] | Telecom & Payment Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 308,790 | 328,838 | 947,342 | 1,018,637 |
Income (loss) from operations | 9,934 | 4,245 | 21,441 | 12,605 |
Other operating expense, net | (2,300) | (2,150) | (5,185) | |
Operating Segments [Member] | net2phone [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12,546 | 12,417 | 38,083 | 34,407 |
Income (loss) from operations | (3,932) | (1,266) | (10,512) | (4,663) |
Other operating expense, net | (386) | (983) | 25 | |
Operating Segments [Member] | Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | ||||
Income (loss) from operations | (2,210) | (2,530) | (7,207) | (7,768) |
Other operating expense, net | $ 152 | $ (120) | $ (269) | $ (645) |
Business Segment Information _2
Business Segment Information (Details Textual) | 9 Months Ended |
Apr. 30, 2020Segment | |
Business Segment Information (Textual) | |
Number of reportable segments | 2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | May 11, 2020 | Apr. 30, 2020 | Jul. 31, 2019 | Aug. 31, 2017 |
Commitments and Contingencies (Textual) | ||||
Accrued expenses | $ 40,000 | $ 44,700 | ||
Purchase commitment | 8,700 | |||
Aggregate commitment | 5,700 | |||
Performance bonds outstanding | 18,000 | |||
Restricted cash and cash equivalents | $ 6,600 | $ 13,200 | ||
Telecom Operator [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Escrow deposit | $ 9,200 | |||
Telecom Operator [Member] | Subsequent Event [Member] | ||||
Commitments and Contingencies (Textual) | ||||
Escrow deposit | $ 9,200 |
Other (Expense) Income, Net (De
Other (Expense) Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Other (Expense) Income, Net (Textual) | ||||
Foreign currency transaction (losses) gains | $ (774) | $ (3) | $ 175 | $ (838) |
(Loss) gain on investments | (1,226) | 623 | (817) | 704 |
Other | (144) | (260) | (718) | (360) |
Total other (expense) income, net | $ (2,144) | $ 360 | $ (1,360) | $ (494) |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Apr. 23, 2020 | Apr. 30, 2020 | |
Defined Contribution Plan (Textual) | ||
Maximum percentage of participants contribution | 20.00% | |
Percentage of discretionary matching contributions | 50.00% | |
Defined benefit plan compensation | 6.00% | |
Company's cost for contributions to the plan | $ 1,000 | |
Employment period contributions, description | First five years |