Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jan. 31, 2021 | Mar. 08, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | IDT CORP | |
Trading Symbol | IDT | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --07-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001005731 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Jan. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-16371 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3415036 | |
Entity Address, Address Line One | 520 Broad Street | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07102 | |
City Area Code | (973) | |
Local Phone Number | 438-1000 | |
Title of 12(g) Security | Class B common stock, par value $.01 per share | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes | |
Class A common stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 1,574,326 | |
Class B common stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 24,151,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2021 | Jul. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 79,481 | $ 84,860 |
Restricted cash and cash equivalents | 109,858 | 116,362 |
Debt securities | 21,501 | 18,363 |
Equity investments | 24,346 | 5,964 |
Trade accounts receivable, net of allowance for doubtful accounts of $6,909 at January 31, 2021 and $6,085 at July 31, 2020 | 51,616 | 44,166 |
Prepaid expenses | 34,671 | 33,115 |
Other current assets | 19,926 | 19,302 |
Total current assets | 341,399 | 322,132 |
Property, plant and equipment, net | 30,641 | 30,061 |
Goodwill | 14,843 | 12,858 |
Other intangibles, net | 6,289 | 3,959 |
Equity investments | 10,441 | 8,833 |
Operating lease right-of-use assets | 8,794 | 9,490 |
Deferred income tax assets, net | 2,832 | 8,512 |
Other assets | 9,332 | 8,905 |
Total assets | 424,571 | 404,750 |
Current liabilities: | ||
Trade accounts payable | 36,368 | 31,147 |
Accrued expenses | 126,425 | 125,544 |
Deferred revenue | 39,189 | 40,114 |
Customer deposits | 109,673 | 115,992 |
Other current liabilities | 14,646 | 12,073 |
Total current liabilities | 326,301 | 324,870 |
Operating lease liabilities | 6,514 | 7,353 |
Other liabilities | 1,340 | 1,388 |
Total liabilities | 334,155 | 333,611 |
Commitments and contingencies | ||
IDT Corporation stockholders’ equity: | ||
Preferred stock, $.01 par value; authorized shares—10,000; no shares issued | ||
Additional paid-in capital | 276,871 | 277,443 |
Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 2,192 and 1,616 shares of Class B common stock at January 31, 2021 and July 31, 2020, respectively | (60,413) | (56,221) |
Accumulated other comprehensive loss | (8,957) | (7,410) |
Accumulated deficit | (117,937) | (139,333) |
Total IDT Corporation stockholders’ equity | 89,860 | 74,772 |
Noncontrolling interests | 556 | (3,633) |
Total equity | 90,416 | 71,139 |
Total liabilities and equity | 424,571 | 404,750 |
Class A common stock | ||
IDT Corporation stockholders’ equity: | ||
Common stock, value | 33 | 33 |
Total equity | 33 | 33 |
Class B common stock | ||
IDT Corporation stockholders’ equity: | ||
Common stock, value | 263 | 260 |
Total equity | $ 263 | $ 260 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Jan. 31, 2021 | Jul. 31, 2020 |
Trade accounts receivable (in Dollars) | $ 6,909 | $ 6,085 |
Preferred stock par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | ||
Class A common stock | ||
Common stock, par value (in Dollars per share) | $ 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 (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 26,343 | 25,961 |
Common stock, shares outstanding | 24,151 | 24,345 |
Treasury stock, common stock shares | 2,192 | 1,616 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |||
Income Statement [Abstract] | ||||||
Revenues | $ 339,766 | $ 323,890 | $ 683,191 | $ 664,089 | ||
Costs and expenses: | ||||||
Direct cost of revenues (exclusive of depreciation and amortization) | 269,145 | 262,716 | 542,319 | 542,177 | ||
Selling, general and administrative | 54,298 | [1] | 53,789 | [1] | 106,442 | 107,223 |
Depreciation and amortization | 4,464 | 5,184 | 8,956 | 10,479 | ||
Severance | 143 | 486 | 255 | 1,112 | ||
Total costs and expenses | 328,050 | 322,175 | 657,972 | 660,991 | ||
Other operating gain (expense), net (see Note 10) | 1,207 | (392) | 955 | (3,168) | ||
Income (loss) from operations | 12,923 | 1,323 | 26,174 | (70) | ||
Interest income, net | 139 | 195 | 98 | 467 | ||
Other income, net | 3,170 | 550 | 1,792 | 785 | ||
Income before income taxes | 16,232 | 2,068 | 28,064 | 1,182 | ||
Provision for income taxes | (3,027) | (1,164) | (6,444) | (1,700) | ||
Net income (loss) | 13,205 | 904 | 21,620 | (518) | ||
Net (income) loss attributable to noncontrolling interests | (97) | 28 | (224) | (63) | ||
Net income (loss) attributable to IDT Corporation | $ 13,108 | $ 932 | $ 21,396 | $ (581) | ||
Earnings (loss) per share attributable to IDT Corporation common stockholders: | ||||||
Basic (in Dollars per share) | $ 0.52 | $ 0.04 | $ 0.84 | $ (0.02) | ||
Diluted (in Dollars per share) | $ 0.51 | $ 0.04 | $ 0.83 | $ (0.02) | ||
Weighted-average number of shares used in calculation of earnings (loss) per share: | ||||||
Basic (in Shares) | 25,362 | 26,320 | 25,448 | 26,300 | ||
Diluted (in Shares) | 25,713 | 26,451 | 25,787 | 26,300 | ||
[1] | Stock-based compensation included in selling, general and administrative expenses |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Statement [Abstract] | ||||
Stock-based compensation included in selling, general and administrative expenses | $ 434 | $ 1,167 | $ 940 | $ 2,531 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 13,205 | $ 904 | $ 21,620 | $ (518) |
Other comprehensive income (loss): | ||||
Change in unrealized loss on available-for-sale securities | 46 | 17 | ||
Foreign currency translation adjustments | (1,815) | (513) | (1,564) | (1,717) |
Other comprehensive loss | (1,769) | (513) | (1,547) | (1,717) |
Comprehensive income (loss) | 11,436 | 391 | 20,073 | (2,235) |
Comprehensive (income) loss attributable to noncontrolling interests | (97) | 28 | (224) | (63) |
Comprehensive income (loss) attributable to IDT Corporation | $ 11,339 | $ 419 | $ 19,849 | $ (2,298) |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) | Total | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Noncontrolling Interests | Class A Common Stock | Class B Common Stock |
BALANCE at Jul. 31, 2019 | $ 53,557,000 | $ 273,313,000 | $ (51,739,000) | $ (4,858,000) | $ (160,763,000) | $ (2,687) | $ 33,000 | $ 258,000 |
BALANCE at Jan. 31, 2020 | 53,393,000 | 276,118,000 | (52,005,000) | (6,575,000) | (161,344,000) | (3,094,000) | 33,000 | 260,000 |
Exercise of stock options | 276,000 | 276,000 | ||||||
Restricted Class B common stock purchased from employees | (266,000) | (266,000) | ||||||
Stock-based compensation | 2,531,000 | 2,529,000 | 2,000 | |||||
Distributions to noncontrolling interests | (470,000) | (470,000) | ||||||
Other comprehensive income (loss) | (1,717,000) | (1,717,000) | ||||||
Net income (loss) | (518,000) | (581,000) | 63,000 | |||||
BALANCE at Oct. 31, 2019 | 52,331,000 | 274,953,000 | (51,739,000) | (6,062,000) | (162,276,000) | (2,836,000) | 33,000 | 258,000 |
BALANCE at Jan. 31, 2020 | 53,393,000 | 276,118,000 | (52,005,000) | (6,575,000) | (161,344,000) | (3,094,000) | 33,000 | 260,000 |
Restricted Class B common stock purchased from employees | (266,000) | (266,000) | ||||||
Stock-based compensation | 1,167,000 | 1,165,000 | 2,000 | |||||
Distributions to noncontrolling interests | (230,000) | (230,000) | ||||||
Other comprehensive income (loss) | (513,000) | (513,000) | ||||||
Net income (loss) | 904,000 | 932,000 | (28,000) | |||||
BALANCE at Jul. 31, 2020 | 71,139,000 | 277,443,000 | (56,221,000) | (7,410,000) | (139,333,000) | (3,633,000) | 33,000 | 260,000 |
BALANCE at Jan. 31, 2021 | 90,416,000 | 276,871,000 | (60,413,000) | (8,957,000) | (117,937,000) | 556,000 | 33,000 | 263,000 |
Exercise of stock options | 686,000 | 686,000 | ||||||
Repurchases of Class B common stock through repurchase program | (2,849,000) | (2,849,000) | ||||||
Restricted Class B common stock purchased from employees | (1,343,000) | (1,343,000) | ||||||
Grant of restricted equity in subsidiary (see Note 11). | (2,195,000) | 2,195,000 | ||||||
Business acquisition | 2,188,000 | 2,188,000 | ||||||
Stock-based compensation | 940,000 | 937,000 | 3,000 | |||||
Distributions to noncontrolling interests | (418,000) | (418,000) | ||||||
Other comprehensive income (loss) | (1,547,000) | (1,547,000) | ||||||
Net income (loss) | 21,620,000 | 21,396,000 | 224,000 | |||||
BALANCE at Oct. 31, 2020 | 77,583,000 | 278,134,000 | (59,077,000) | (7,188,000) | (131,045,000) | (3,534,000) | 33,000 | 260,000 |
BALANCE at Jan. 31, 2021 | 90,416,000 | 276,871,000 | (60,413,000) | (8,957,000) | (117,937,000) | 556,000 | 33,000 | 263,000 |
Exercise of stock options | 501,000 | 501,000 | ||||||
Restricted Class B common stock purchased from employees | (1,336,000) | (1,336,000) | ||||||
Grant of restricted equity in subsidiary (see Note 11). | (2,195,000) | 2,195,000 | ||||||
Business acquisition | 2,188,000 | 2,188,000 | ||||||
Stock-based compensation | 434,000 | 431,000 | 3,000 | |||||
Distributions to noncontrolling interests | (390,000) | (390,000) | ||||||
Other comprehensive income (loss) | (1,769,000) | (1,769,000) | ||||||
Net income (loss) | $ 13,205,000 | $ 13,108,000 | $ 97,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Operating activities | ||
Net income (loss) | $ 21,620 | $ (518) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 8,956 | 10,479 |
Deferred income taxes | 5,881 | 1,587 |
Provision for doubtful accounts receivable | 1,069 | 1,466 |
Stock-based compensation | 940 | 2,531 |
Other | (17) | (412) |
Change in assets and liabilities: | ||
Trade accounts receivable | (7,330) | 6,253 |
Prepaid expenses, other current assets and other assets | 4,965 | (9,315) |
Trade accounts payable, accrued expenses, other current liabilities, and other liabilities | 1,631 | (11,488) |
Customer deposits at IDT Financial Services Limited (Gibraltar-based bank) | (11,136) | (20,613) |
Deferred revenue | (968) | (3,260) |
Net cash provided by (used in) operating activities | 25,611 | (23,290) |
Investing activities | ||
Capital expenditures | (8,825) | (7,656) |
Payments for acquisitions, net of cash acquired | (2,388) | (450) |
Purchase of Rafael Holdings, Inc. Class B common stock and warrant | (5,000) | |
Purchases of debt securities and equity investments | (34,436) | (8,994) |
Proceeds from maturities and sales of debt securities and redemptions of equity investments | 11,575 | 2,672 |
Net cash used in investing activities | (39,074) | (14,428) |
Financing activities | ||
Distributions to noncontrolling interests | (418) | (470) |
Repayment of other liabilities. | (56) | (79) |
Repayments of borrowings under revolving credit facility | (273) | |
Proceeds from borrowings under revolving credit facility | 273 | |
Proceeds from exercise of stock options | 686 | 276 |
Repurchases of Class B common stock | (4,192) | (266) |
Net cash used in financing activities | (3,980) | (539) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents | 5,560 | 14,152 |
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents | (11,883) | (24,105) |
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period | 201,222 | 257,199 |
Cash, cash equivalents, and restricted cash and cash equivalents at end of period | 189,339 | 233,094 |
Supplemental schedule of non-cash investing and financing activities | ||
Liabilities incurred for acquisition | $ 393 | $ 375 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jan. 31, 2021 | |
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 six months ended January 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2021. The balance sheet at July 31, 2020 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, 2020, as filed with the U.S. Securities and Exchange Commission (the “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 2021 refers to the fiscal year ending July 31, 2021). |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 2—Business Segment Information As of August 1, 2020, the Company revised its reportable business segments to reflect the growth of its financial technology and cloud communications businesses and their increased contributions to the Company’s consolidated results. The Company now has three reportable business segments, Fintech, net2phone-Unified Communications as a Service (“UCaaS”), and Traditional Communications. The revised reportable business segments reflect management’s approach to analyzing results, its resource allocation strategy, and its assessment of business performance. Comparative segment information has been reclassified and restated in all periods to conform to the current period presentation. 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. There are no significant asymmetrical allocations to segments. The Company evaluates the performance of its business segments based primarily on income (loss) from operations. The Fintech segment comprises BOSS Revolution Money Transfer, a provider of international money remittance and related value/payment transfer services, and National Retail Solutions (“NRS”), operator of a nationwide point of sale (“POS”) retail network providing payment processing, digital advertising, transaction data, and ancillary services. BOSS Revolution Money Transfer and NRS were previously included in the Company’s Telecom & Payment Services segment. The net2phone-UCaaS segment comprises net2phone’s cloud communications offerings, which were previously included in the Company’s net2phone segment. The Traditional Communications segment includes BOSS Revolution Calling, an international long-distance calling service marketed primarily to immigrant communities in the United States, Mobile Top-Up, which enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts, and Carrier Services, a wholesale provider of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide. Traditional Communications also includes net2phone-Platform Services, which provides telephony services to cable operators and other offerings that leverage a common technology platform, as well as smaller communications and payments offerings, many in harvest mode. Most of the Traditional Communications segment was previously included in the Company’s Telecom & Payment Services segment except for net2phone-Platform Services, which was previously included in the Company’s net2phone segment. Corporate costs include compensation, consulting fees, treasury, tax and accounting services, human resources, 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 were as follows: (in thousands) Fintech net2phone- Traditional Communications Corporate Total Three Months Ended January 31, 2021 Revenues $ 18,497 $ 10,738 $ 310,531 $ — $ 339,766 (Loss) income from operations (247 ) (3,248 ) 18,712 (2,294 ) 12,923 Three Months Ended January 31, 2020 Revenues $ 9,741 $ 7,915 $ 306,234 $ — $ 323,890 (Loss) income from operations (3,177 ) (3,787 ) 10,782 (2,495 ) 1,323 Six Months Ended January 31, 2021 Revenues $ 38,585 $ 20,366 $ 624,240 $ — $ 683,191 Income (loss) from operations 2,889 (7,059 ) 34,502 (4,158 ) 26,174 Six Months Ended January 31, 2020 Revenues $ 19,298 $ 15,122 $ 629,669 $ — $ 664,089 (Loss) income from operations (5,847 ) (7,495 ) 18,268 (4,996 ) (70 ) |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 3—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 voice and SMS termination. BOSS Revolution Money Transfer, NRS, and net2phone-UCaaS are technology-driven, synergistic businesses that leverage the Company’s core assets, and revenue is primarily recognized at a point in time, and in some cases (mainly net2phone-UCaaS) is recognized over time. Traditional Communications are mostly minute-based, paid-voice communications services, and revenue is primarily recognized at a point in time. The Company’s most significant revenue streams are from BOSS Revolution Calling, Mobile Top-Up, and Carrier Services. 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 Six Months Ended 2021 2020 2021 2020 (in thousands) BOSS Revolution Money Transfer $ 13,280 $ 7,660 $ 28,438 $ 14,861 National Retail Solutions 5,217 2,081 10,147 4,437 Total Fintech 18,497 9,741 38,585 19,298 net2phone-UCaaS 10,738 7,915 20,366 15,122 Mobile Top-Up 96,562 75,836 192,397 152,669 BOSS Revolution Calling 113,903 113,861 231,253 231,195 Carrier Services 87,155 101,659 174,928 215,176 Other 12,911 14,878 25,662 30,629 Total Traditional Communications 310,531 306,234 624,240 629,669 Total $ 339,766 $ 323,890 $ 683,191 $ 664,089 The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location. On July 31, 2020, the Company restructured certain operations for tax purposes resulting in the change of geographic sourcing of revenues from the Netherlands to the United States. (in thousands) Fintech net2phone- Traditional Communications Total Three Months Ended January 31, 2021 United States $ 18,497 $ 5,677 $ 265,318 $ 289,492 Outside the United States: United Kingdom — — 31,929 31,929 Netherlands — — 5 5 Other — 5,061 13,279 18,340 Total outside the United States — 5,061 45,213 50,274 Total $ 18,497 $ 10,738 $ 310,531 $ 339,766 (in thousands) Fintech net2phone- Traditional Communications Total Three Months Ended January 31, 2020 United States $ 9,741 $ 3,695 $ 206,129 $ 219,565 Outside the United States: United Kingdom — 3 36,151 36,154 Netherlands — — 49,692 49,692 Other — 4,217 14,262 18,479 Total outside the United States — 4,220 100,105 104,325 Total $ 9,741 $ 7,915 $ 306,234 $ 323,890 (in thousands) Fintech net2phone- Traditional Communications Total Six Months Ended January 31, 2021 United States $ 38,585 $ 10,758 $ 535,949 $ 585,292 Outside the United States: United Kingdom — — 61,350 61,350 Netherlands — — 7 7 Other — 9,608 26,934 36,542 Total outside the United States — 9,608 88,291 97,899 Total $ 38,585 $ 20,366 $ 624,240 $ 683,191 (in thousands) Fintech net2phone- Traditional Communications Total Six Months Ended January 31, 2020 United States $ 19,298 $ 6,967 $ 420,442 $ 446,707 Outside the United States: United Kingdom — 7 71,943 71,950 Netherlands — — 104,634 104,634 Other — 8,148 32,650 40,798 Total outside the United States — 8,155 209,227 217,382 Total $ 19,298 $ 15,122 $ 629,669 $ 664,089 Remaining 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 January 31, 2021 and July 31, 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 payments received for prepaid BOSS Revolution Calling. 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 sheets as “Deferred revenue”. The following table presents information about the Company’s contract liability balance: Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period $ 22,818 $ 24,957 $ 26,451 $ 35,146 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. 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: January 31, July 31, (in thousands) Deferred customer contract acquisition costs included in “Other current assets” $ 3,066 $ 2,350 Deferred customer contract acquisition costs included in “Other assets” 2,946 2,384 Total $ 6,012 $ 4,734 The Company’s amortization of deferred customer contract acquisition costs during the periods were as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Amortization of deferred customer contract acquisition costs $ 864 $ 615 $ 1,631 $ 1,166 |
Leases
Leases | 6 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 4—Leases The Company’s leases primarily consist of operating leases for office space. These leases have remaining terms from one to five years. net2phone-UCaaS also has operating leases for office equipment. Certain of these leases contain 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 or terminate the leases. net2phone-UCaaS has equipment leases that are classified as finance leases, and net2phone-UCaaS is the lessor in various equipment leases that are classified as sales-type finance leases. 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 “Rafael Spin-Off”). Howard S. Jonas, the Chairman of the Company’s Board of Directors, is also the Chairman of the Board of Directors and Chief Executive Officer of Rafael. 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 each of the three months ended January 31, 2021 and 2020, the Company incurred lease costs of $0.5 million, and in each of the six months ended January 31, 2021 and 2020, the Company incurred lease costs of $0.9 million 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 Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Operating lease cost $ 697 $ 712 $ 1,425 $ 1,423 Short-term lease cost 130 75 195 133 Total lease cost $ 827 $ 787 $ 1,620 $ 1,556 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 672 $ 685 $ 1,382 $ 1,369 January 31, July 31, Weighted-average remaining lease term-operating leases 3.7 years 4.2 years Weighted-average discount rate-operating leases 2.9 % 3.12 % On September 1, 2020, the Company entered into a new lease with an aggregate operating lease liability of $0.6 million. The Company’s aggregate operating lease liability was as follows: January 31, July 31, (in thousands) Operating lease liabilities included in “Other current liabilities” $ 2,537 $ 2,350 Operating lease liabilities included in noncurrent liabilities 6,514 7,353 Total $ 9,051 $ 9,703 Future minimum maturities of operating lease liabilities were as follows (in thousands): Twelve-month period ending January 31: 2022 $ 2,768 2023 2,526 2024 1,957 2025 1,844 2026 497 Thereafter — Total lease payments 9,592 Less imputed interest (541 ) Total operating lease liabilities $ 9,051 |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | 6 Months Ended |
Jan. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents | Note 5—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 sheets that equals the total of the same amounts reported in the consolidated statements of cash flows: January 31, July 31, (in thousands) Cash and cash equivalents $ 79,481 $ 84,860 Restricted cash and cash equivalents 109,858 116,362 Total cash, cash equivalents, and restricted cash and cash equivalents $ 189,339 $ 201,222 At January 31, 2021 and July 31, 2020, restricted cash and cash equivalents included $109.8 million and $116.3 million, respectively, in restricted cash and cash equivalents for customer deposits held by IDT Financial Services Limited, the Company’s Gibraltar-based bank. |
Debt Securities
Debt Securities | 6 Months Ended |
Jan. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities | Note 6—Debt Securities The following is a summary of available-for-sale debt securities: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) January 31, 2021: Certificates of deposit* $ 4,608 $ 15 $ — $ 4,623 U.S. Treasury bills and notes 3,676 — (9 ) 3,667 Corporate bonds 6,233 68 (17 ) 6,284 Municipal bonds 6,925 2 — 6,927 Total $ 21,442 $ 85 $ (26 ) $ 21,501 July 31, 2020: Certificates of deposit* $ 13,844 $ 58 $ — $ 13,902 U.S. Treasury bills 2,498 — — 2,498 Municipal bonds 1,979 — (16 ) 1,963 Total $ 18,321 $ 58 $ (16 ) $ 18,363 * 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 $5.0 million and $1.9 million in the three months ended January 31, 2021 and 2020, respectively, and $11.6 million and $2.7 million in the six months ended January 31, 2021 and 2020, respectively. There were no realized gains or realized losses from sales of debt securities in the three and six months ended January 31, 2021 and 2020. 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 January 31, 2021 were as follows: Fair Value (in thousands) Within one year $ 9,688 After one year through five years 6,447 After five years through ten years 4,611 After ten years 755 Total $ 21,501 The following available-for-sale debt securities were in an unrealized loss position for which other-than-temporary impairments were not recognized: Unrealized Losses Fair Value (in thousands) January 31, 2021: U.S. Treasury bills and notes $ 9 $ 1,667 Corporate bonds 17 1,690 Total $ 26 $ 3,357 July 31, 2020: Municipal bonds $ 16 $ 1,963 At January 31, 2021 and July 31, 2020, there were no securities in a continuous unrealized loss position for 12 months or longer. |
Equity Investments
Equity Investments | 6 Months Ended |
Jan. 31, 2021 | |
Equity Investments Disclosure [Abstract] | |
Equity Investments | Note 7—Equity Investments Equity investments consist of the following: January 31, July 31, (in thousands) Zedge, Inc. Class B common stock, 42,282 shares at January 31, 2021 and July 31, 2020 $ 307 $ 59 Rafael Holdings, Inc. Class B common stock, 28,320 and 27,806 shares at January 31, 2021 and July 31, 2020, respectively 665 389 Fixed income mutual funds 23,374 5,516 Current equity investments $ 24,346 $ 5,964 Visa Inc. Series C Convertible Participating Preferred Stock (“Visa Series C Preferred”) $ 1,939 $ 3,825 Visa Inc. Series A Convertible Participating Preferred Stock (“Visa Series A Preferred”) 2,416 — Rafael Holdings, Inc. warrant 380 — Hedge funds 3,481 4,783 Other 2,225 225 Noncurrent equity investments $ 10,441 $ 8,833 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. (“Zedge”) to the Company’s stockholders of record as of the close of business on May 26, 2016. Howard S. Jonas is the Vice-Chairman of the Board of Directors of Zedge. The Company received the Zedge Class B common shares and the Rafael Class B common shares set forth in the table above 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. On December 7, 2020, the Company purchased from Rafael 218,245 newly issued shares of Rafael’s Class B common stock and a warrant to purchase up to 43,649 shares of Rafael’s Class B common stock at an exercise price of $22.91 at any time on or after December 7, 2020 and on or prior to June 6, 2022. The aggregate purchase price of $5.0 million was allocated $4.6 million to the shares and $0.4 million to the warrant based on their relative purchase date fair values. The fair value of the warrant on the acquisition date was estimated using a Black-Scholes valuation model that represents a Level 3 measurement. The purchase price was based on a per share price of $22.91, which was the closing price of Rafael’s Class B common stock on the New York Stock Exchange on the trading day immediately preceding December 7, 2020. At January 31, 2021, these shares of Rafael’s Class B common stock and the warrant were not available for sale, assignment, or transfer. The value of the shares at January 31, 2021 of $5.1 million was included in “Other current assets” in the consolidated balance sheets. In June 2016, upon the acquisition of Visa Europe Limited by Visa, Inc. (“Visa”), IDT Financial Services Limited received 1,830 shares of Visa Series C Preferred among other consideration. At July 31, 2020, each share of Visa Series C Preferred was convertible into 13.722 shares of Visa Class A common stock (the “Conversion Adjustment), subject to certain conditions, and will be convertible at the holder’s option beginning in June 2028. On September 24, 2020, in connection with Visa’s first mandatory release assessment, the Company received 125 shares of Visa Series A Preferred and the Conversion Adjustment for Visa Series C Preferred was reduced to 6.861. The 125 shares of Visa Series A Preferred are convertible into 12,500 shares of Visa Class A common stock. 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 Six Months Ended 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 2,109 $ 3,937 $ 4,109 $ 3,919 Redemption for Visa mandatory release assessment — — (1,870 ) — Adjustment for observable transactions involving a similar investment from the same issuer 114 408 (16 ) 426 Impairments — — — — Balance, end of the period $ 2,223 $ 4,345 $ 2,223 $ 4,345 In the three months ended January 31, 2021 and the three and six months ended January 31, 2020, the Company increased the carrying value of the shares of Visa Series C Preferred it held by $0.1 million, $0.4 million, and $0.4 million, respectively, and in the six months ended January 31, 2021, the Company decreased the carrying value of the shares of Visa Series C Preferred it held by $16,000, based on the fair value of Visa Class A common stock and a discount for lack of current marketability. Unrealized gains for all equity investments included the following: Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Net gains recognized during the period on equity investments $ 1,307 $ 383 $ 387 $ 409 Less: net gains and losses recognized during the period on equity investments sold during the period — — — — Unrealized gains recognized during the period on equity investments still held at the reporting date $ 1,307 $ 383 $ 387 $ 409 Subsequent Event—MarketSpark, Inc. On February 2, 2021, the Company paid $4.0 million to purchase shares of MarketSpark, Inc. Series B Convertible Preferred Stock representing 23.95% of the outstanding shares of MarketSpark on an as converted basis. MarketSpark, which is based in San Diego, California, replaces telephone lines in commercial buildings, such as the ones used in fire panels, elevators, emergency phone lines, point-of-sale terminals, and fax lines, with cellular connections. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8—Fair Value Measurements The following table presents 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) January 31, 2021 Debt securities $ 3,667 $ 17,834 $ — $ 21,501 Equity investments included in current assets 29,470 — — 29,470 Equity investments included in noncurrent assets — 2,416 2,319 4,735 Total $ 33,137 $ 20,250 $ 2,319 $ 55,706 Contingent consideration included in other noncurrent liabilities $ — $ — $ (799 ) $ (799 ) July 31, 2020 Debt securities $ 2,498 $ 15,865 $ — $ 18,363 Equity investments included in current assets 5,964 — — 5,964 Equity investments included in noncurrent assets — — 3,825 3,825 Total $ 8,462 $ 15,865 $ 3,825 $ 28,152 Contingent consideration included in other noncurrent liabilities $ — $ — $ (396 ) $ (396 ) (1) – quoted prices in active markets for identical assets or liabilities (2) – observable inputs other than quoted prices in active markets for identical assets and liabilities (3) – no observable pricing inputs in the market At January 31, 2021 and July 31, 2020, the Company had $3.5 million and $4.8 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 Six Months Ended 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 1,825 $ 3,637 $ 3,825 $ 3,619 Purchase of Rafael Holdings, Inc. warrant 354 — 354 — Redemption for Visa mandatory release assessment — — (1,870 ) — Total gains recognized in “Other income, net” 140 408 10 426 Balance, end of period $ 2,319 $ 4,045 $ 2,319 $ 4,045 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ — $ — $ — $ — 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): Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 391 $ — $ 396 $ — Transfer into Level 3 from acquisitions (see Note 9) 393 375 393 375 Total loss (gain) included in “Foreign currency translation adjustment” 15 (5 ) 10 (5 ) Balance, end of period $ 799 $ 370 $ 799 $ 370 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 | 6 Months Ended |
Jan. 31, 2021 | |
Acquistions [Abstract] | |
Acquisitions | Note 9—Acquisitions On December 3, 2020, the Company’s subsidiary IDT International Telecom, Inc. (“IDTIT”) acquired 51% of the issued shares of a company that provides a digital distribution platform facilitating supply and distribution of mobile airtime and data top-ups and other services across borders via a single point application programming interface. The operating results of the acquired company 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 $ 2,732 Cash acquired (344 ) Cash paid, net of cash acquired 2,388 Contingent consideration 393 Total fair value of consideration, net of cash acquired $ 2,781 The contingent consideration of $0.5 million will be paid (a) no later than November 30, 2021 if the acquired company generates EBITDA of no less than $1.0 million between October 1, 2020 and September 30, 2021; or (b) no later than November 30, 2022 if the acquired company generates EBITDA of no less than $1.0 million between October 1, 2021 and September 30, 2022. The acquisition-date fair value of the contingent consideration was estimated using discounted cash flow models. 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 January 31, 2021. In addition, IDTIT paid the $0.1 million loan payable from the acquired company to the seller, and the loan payable was assigned to IDTIT. Also, a subsidiary of the Company and the seller entered into a Put/Call Option Agreement related to the 5% of the issued shares of the acquired company that were not sold to IDTIT (“Option Shares”). On February 2, 2021, the seller exercised its option to cause the Company’s subsidiary to purchase the Option Shares for $0.3 million. To date, the purchase of the Options Shares is still in process. The impact of the acquisition’s purchase price allocations on the Company’s consolidated balance sheet was as follows (in thousands): Trade accounts receivable $ 656 Prepaid expenses 1,644 Property, plant and equipment 75 Goodwill 1,894 Customer relationships (15-year useful lives) 1,960 Tradenames (20-year useful lives) 440 Deferred income tax assets 197 Other assets 161 Trade accounts payable (1,306 ) Accrued expenses (423 ) Other current liabilities (329 ) Noncontrolling interests (2,188 ) Net assets excluding cash acquired $ 2,781 The goodwill was assigned to the Traditional Communications segment and was attributable primarily to the assembled workforces and the expected synergies from the business combination. The goodwill is not expected to be deductible for income tax purposes. The Company’s pro forma results of operations as if the acquisition occurred on August 1, 2019 were not materially different from the actual results of operations. 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 regional provider of cloud communications services to businesses in Spain. The acquisition date fair value of the consideration consisted of the following: Cash paid $ 450 Contingent consideration 375 Total fair value of consideration $ 825 Ringsouth’s operating results from the date of acquisition, which were not significant, were included in the Company’s consolidated financial statements. The Company’s pro forma results of operations as if the Ringsouth acquisition occurred on August 1, 2019 were not materially different from the actual results of operations. |
Other Operating Expense, Net
Other Operating Expense, Net | 6 Months Ended |
Jan. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense, Net | Note 10—Other Operating Gain (Expense), Net The following table summarizes the other operating gain (expense), net by business segment: Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Corporate—Straight Path Communications Inc. class action legal fees net of insurance claims $ (306 ) $ (160 ) $ (4 ) $ (421 ) net2phone-UCaaS—other, net (100 ) (63 ) (100 ) (63 ) Traditional Communications—gain from sale of rights under class action lawsuit 2,000 — 2,000 — Traditional Communications—net2phone indemnification claim (387 ) (169 ) (387 ) (534 ) Traditional Communications—Carrier Services settlement — — (554 ) — Traditional Communications—accrual for non-income related taxes related to a foreign subsidiary — — — (2,150 ) Total other operating gain (expense), net $ 1,207 $ (392 ) $ 955 $ (3,168 ) 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 14, there is a pending putative class action on behalf of Straight Path’s stockholders and derivative complaint naming the Company, among others. The Company incurred legal fees of $1.4 million and $0.6 million in the three months ended January 31, 2021 and 2020, respectively, and $1.7 million and $1.2 million in the six months ended January 31, 2021 and 2020, respectively, related to this action. Also, the Company recorded offsetting gains from insurance claims for this matter of $1.1 million and $0.4 million in the three months ended January 31, 2021 and 2020, respectively, and $1.7 million and $0.8 million in the six months ended January 31, 2021 and 2020, respectively. Gain from Sale of Rights under Class Action Lawsuit On December 21, 2020, the Company received $2.0 million from the sale to a third party of all its rights under the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation. The lawsuit is about claims that merchants paid excessive fees to accept Visa and Mastercard cards between January 1, 2004 and January 25, 2019 because Visa and Mastercard, individually, and together with their respective member banks, violated the antitrust laws. 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 six months ended January 31, 2020, the Company recorded an accrual for non-income related taxes related to one of its foreign subsidiaries. |
Equity
Equity | 6 Months Ended |
Jan. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Equity | Note 11—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 six months ended January 31, 2021, the Company repurchased 463,792 shares of Class B common stock for an aggregate purchase price of $2.8 million. There were no repurchases under the program in six months ended January 31, 2020. At January 31, 2021, 5.8 million shares remained available for repurchase under the stock repurchase program. 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 5, 2021, the second vesting date under the program, in accordance with the program and based on elections made by certain grantees, the Company issued 283,838 shares of its Class B common stock in respect of vested DSUs. Based on those elections, vesting for 19,919 DSUs was delayed until January 5, 2022. At January 31, 2021, there were 154,169 unvested DSUs outstanding, all of which are eligible to vest (if the conditions therefor are satisfied) on January 5, 2022. 2015 Stock Option and Incentive Plan In the six months ended January 31, 2021 and 2020, the Company received proceeds from the exercise of stock options of $0.7 million and $0.3 million, respectively, for which the Company issued 81,041 and 32,551 shares, respectively, of its Class B common stock. Grant of Restricted Equity in net2phone 2.0, Inc. On December 31, 2020, the previously approved compensatory arrangement with each of Howard S. Jonas and Shmuel Jonas, the Company’s Chief Executive Officer, was finalized. Howard S. Jonas and Shmuel Jonas each received fifty restricted shares of net2phone 2.0, Inc. (“net2phone 2.0”) Class B common stock, which represents 5% of the outstanding common stock of net2phone 2.0. net2phone 2.0 is a new entity that owns and operates the net2phone-UCaaS segment. The restricted shares will vest if: (a) for any fiscal quarter of net2phone 2.0 between November 1, 2020 and October 31, 2023, net2phone 2.0 records subscription revenue that is at least $18 million, and (b) as of October 31, 2023, the valuation of net2phone 2.0 is $100 million or more. The restricted shares will also vest in the event, prior to October 31, 2023, net2phone 2.0 or its assets are sold at an equity valuation and on a cash-free basis of $100 million or more, regardless of whether the revenue threshold was satisfied prior thereto. The restricted shares entitle each grantee to proceeds only on a sale, spin-off, initial public offering, or other monetization of net2phone 2.0 and have protection from dilution for the first $15 million invested in the net2phone 2.0 following the grant. The aggregate estimated fair value on the grant date was $0.2 million, which will be recognized over the vesting period. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 12—Earnings (Loss) Per Share Basic earnings per share is computed by dividing net income attributable to all classes of common stockholders of the Company by the weighted average number of shares of all classes of common stock outstanding during the applicable period. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the number of shares is increased to include restricted stock still subject to risk of forfeiture and to assume exercise of potentially dilutive stock options using the treasury stock method, unless the effect of such increase is anti-dilutive. The weighted-average number of shares used in the calculation of basic and diluted earnings (loss) per share attributable to the Company’s common stockholders consists of the following: Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Basic weighted-average number of shares 25,362 26,320 25,448 26,300 Effect of dilutive securities: Stock options 9 — 4 — Non-vested restricted Class B common stock 342 131 335 — Diluted weighted-average number of shares 25,713 26,451 25,787 26,300 The following shares were excluded from the calculation of diluted earnings (loss) per share: Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Stock options 1,035 1,190 1,070 1,190 Non-vested restricted Class B common stock — — — 520 Shares excluded from the calculation of diluted earnings per share 1,035 1,190 1,070 1,710 In the three and six months ended January 31, 2021 and in the three months ended January 31, 2020, 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 six months ended January 31, 2020 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jan. 31, 2021 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 13—Accumulated Other Comprehensive Loss The accumulated balances for each classification of other comprehensive (loss) income were as follows: Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss (in thousands) Balance, July 31, 2020 $ 42 $ (7,452 ) $ (7,410 ) Other comprehensive income (loss) attributable to IDT Corporation 17 (1,564 ) (1,547 ) Balance, January 31, 2021 $ 59 $ (9,016 ) $ (8,957 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14—Commitments and Contingencies Coronavirus Disease (COVID-19) The Company continues to monitor and respond to the impacts of the COVID-19 pandemic on all aspects of its business, including its customers, employees, suppliers, vendors, and business partners. Operationally, the Company’s employees transitioned to work-from-home during the third quarter of fiscal 2020 and, to a large degree, continued to work-from-home thereafter. Its salespeople and delivery employees continued to serve its independent retailers and channel partners with minimal interruption. COVID-19 had mixed financial impacts on the Company during the third and fourth quarters of fiscal 2020, and the first and second quarters of fiscal 2021. Legal Proceedings 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. In August 2019, the Company filed a cross complaint against Rosales alleging trade secret and other violations. The parties are now seeking court approval of a settlement agreement. 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, which was ultimately denied, and which denial was affirmed by the Delaware Supreme Court. The parties are engaged in discovery. The trial is currently scheduled for December 6, 2021. The Company intends to vigorously defend this matter (see Note 10). 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 has evaluated its state tax filings with respect to the Wayfair decision and is in the process of reviewing its remittance 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 Fees Audit The Company’s 2017 FCC Form 499-A, which reports its calendar year 2016 revenue, is currently under audit by the Universal Service Administrative Company (“USAC”). The Internal Audit Division of USAC issued preliminary audit findings and the Company has, in accordance with audit procedures, appealed certain of the findings. The Company awaits a final decision by USAC on the preliminary audit findings. Depending on the findings contained in the final decision, the Company may further appeal to the FCC. Although a final decision remains pending, the Company has been invoiced $2.9 million and $1.8 million on behalf of the Federal Telecommunications Relay Services Fund and on behalf of the Universal Service Fund, respectively. The Company does not intend to remit payment for these fees unless and until a negative decision on its appeal has been issued. In response to the aforementioned preliminary audit findings, the Company made certain changes to its filing policies and procedures for years that remain potentially under audit. At January 31, 2021 and July 31, 2020, the Company’s accrued expenses included $41.1 million and $40.8 million, respectively, for FCC-related regulatory fees for the year covered by the audit, as well as prior and subsequent years. Purchase Commitments At January 31, 2021, the Company had purchase commitments of $1.3 million primarily for certain equipment and services. Performance Bonds The Company has performance bonds issued through third parties for the benefit of various states in order to comply with the states’ financial requirements for money remittance licenses and telecommunications resellers. At January 31, 2021, the Company had aggregate performance bonds of $19.8 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 January 31, 2021 and July 31, 2020, “Cash and cash equivalents” in the Company’s consolidated balance sheets included an aggregate of $9.8 million and $11.0 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 | 6 Months Ended |
Jan. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other (Expense) Income, Net | Note 15—Other Income, Net Other income, net consists of the following: Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Foreign currency transaction gains $ 1,893 $ 278 $ 1,466 $ 949 Write-off of tax assets related to prior periods — (139 ) — (613 ) Gain on investments 1,307 383 387 409 Other (30 ) 28 (61 ) 40 Total other income, net $ 3,170 $ 550 $ 1,792 $ 785 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards Not Yet Adopted | 6 Months Ended |
Jan. 31, 2021 | |
Recently Issued Accounting Standards Not Yet Adopted [Abstract] | |
Recently Issued Accounting Standards Not Yet Adopted | Note 16—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), |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of operating results of business segments | (in thousands) Fintech net2phone- Traditional Communications Corporate Total Three Months Ended January 31, 2021 Revenues $ 18,497 $ 10,738 $ 310,531 $ — $ 339,766 (Loss) income from operations (247 ) (3,248 ) 18,712 (2,294 ) 12,923 Three Months Ended January 31, 2020 Revenues $ 9,741 $ 7,915 $ 306,234 $ — $ 323,890 (Loss) income from operations (3,177 ) (3,787 ) 10,782 (2,495 ) 1,323 Six Months Ended January 31, 2021 Revenues $ 38,585 $ 20,366 $ 624,240 $ — $ 683,191 Income (loss) from operations 2,889 (7,059 ) 34,502 (4,158 ) 26,174 Six Months Ended January 31, 2020 Revenues $ 19,298 $ 15,122 $ 629,669 $ — $ 664,089 (Loss) income from operations (5,847 ) (7,495 ) 18,268 (4,996 ) (70 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenues disaggregated by business segment and service offered to customers | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) BOSS Revolution Money Transfer $ 13,280 $ 7,660 $ 28,438 $ 14,861 National Retail Solutions 5,217 2,081 10,147 4,437 Total Fintech 18,497 9,741 38,585 19,298 net2phone-UCaaS 10,738 7,915 20,366 15,122 Mobile Top-Up 96,562 75,836 192,397 152,669 BOSS Revolution Calling 113,903 113,861 231,253 231,195 Carrier Services 87,155 101,659 174,928 215,176 Other 12,911 14,878 25,662 30,629 Total Traditional Communications 310,531 306,234 624,240 629,669 Total $ 339,766 $ 323,890 $ 683,191 $ 664,089 |
Schedule of revenues disaggregated by geographic region | (in thousands) Fintech net2phone- Traditional Communications Total Three Months Ended January 31, 2021 United States $ 18,497 $ 5,677 $ 265,318 $ 289,492 Outside the United States: United Kingdom — — 31,929 31,929 Netherlands — — 5 5 Other — 5,061 13,279 18,340 Total outside the United States — 5,061 45,213 50,274 Total $ 18,497 $ 10,738 $ 310,531 $ 339,766 (in thousands) Fintech net2phone- Traditional Communications Total Three Months Ended January 31, 2020 United States $ 9,741 $ 3,695 $ 206,129 $ 219,565 Outside the United States: United Kingdom — 3 36,151 36,154 Netherlands — — 49,692 49,692 Other — 4,217 14,262 18,479 Total outside the United States — 4,220 100,105 104,325 Total $ 9,741 $ 7,915 $ 306,234 $ 323,890 (in thousands) Fintech net2phone- Traditional Communications Total Six Months Ended January 31, 2021 United States $ 38,585 $ 10,758 $ 535,949 $ 585,292 Outside the United States: United Kingdom — — 61,350 61,350 Netherlands — — 7 7 Other — 9,608 26,934 36,542 Total outside the United States — 9,608 88,291 97,899 Total $ 38,585 $ 20,366 $ 624,240 $ 683,191 (in thousands) Fintech net2phone- Traditional Communications Total Six Months Ended January 31, 2020 United States $ 19,298 $ 6,967 $ 420,442 $ 446,707 Outside the United States: United Kingdom — 7 71,943 71,950 Netherlands — — 104,634 104,634 Other — 8,148 32,650 40,798 Total outside the United States — 8,155 209,227 217,382 Total $ 19,298 $ 15,122 $ 629,669 $ 664,089 |
Schedule of information about contract liability balance | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period $ 22,818 $ 24,957 $ 26,451 $ 35,146 |
Schedule of deferred customer contract acquisition costs | January 31, July 31, (in thousands) Deferred customer contract acquisition costs included in “Other current assets” $ 3,066 $ 2,350 Deferred customer contract acquisition costs included in “Other assets” 2,946 2,384 Total $ 6,012 $ 4,734 |
Schedule of amortization of deferred customer contract acquisition costs | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Amortization of deferred customer contract acquisition costs $ 864 $ 615 $ 1,631 $ 1,166 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jan. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Schedule of supplemental disclosures related to the Company's operating leases | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Operating lease cost $ 697 $ 712 $ 1,425 $ 1,423 Short-term lease cost 130 75 195 133 Total lease cost $ 827 $ 787 $ 1,620 $ 1,556 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 672 $ 685 $ 1,382 $ 1,369 |
Schedule of supplemental disclosures related weighted average operating leases | January 31, July 31, Weighted-average remaining lease term-operating leases 3.7 years 4.2 years Weighted-average discount rate-operating leases 2.9 % 3.12 % |
Schedule of aggregate operating lease liability | January 31, July 31, (in thousands) Operating lease liabilities included in “Other current liabilities” $ 2,537 $ 2,350 Operating lease liabilities included in noncurrent liabilities 6,514 7,353 Total $ 9,051 $ 9,703 |
Schedule of future minimum maturities of operating lease liabilities | Twelve-month period ending January 31: 2022 $ 2,768 2023 2,526 2024 1,957 2025 1,844 2026 497 Thereafter — Total lease payments 9,592 Less imputed interest (541 ) Total operating lease liabilities $ 9,051 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jan. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash, cash equivalents, and restricted cash and cash equivalents | January 31, July 31, (in thousands) Cash and cash equivalents $ 79,481 $ 84,860 Restricted cash and cash equivalents 109,858 116,362 Total cash, cash equivalents, and restricted cash and cash equivalents $ 189,339 $ 201,222 |
Debt Securities (Tables)
Debt Securities (Tables) | 6 Months Ended |
Jan. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available-for-sale securities | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) January 31, 2021: Certificates of deposit* $ 4,608 $ 15 $ — $ 4,623 U.S. Treasury bills and notes 3,676 — (9 ) 3,667 Corporate bonds 6,233 68 (17 ) 6,284 Municipal bonds 6,925 2 — 6,927 Total $ 21,442 $ 85 $ (26 ) $ 21,501 July 31, 2020: Certificates of deposit* $ 13,844 $ 58 $ — $ 13,902 U.S. Treasury bills 2,498 — — 2,498 Municipal bonds 1,979 — (16 ) 1,963 Total $ 18,321 $ 58 $ (16 ) $ 18,363 |
Schedule of contractual maturities of available-for-sale debt securities | Fair Value (in thousands) Within one year $ 9,688 After one year through five years 6,447 After five years through ten years 4,611 After ten years 755 Total $ 21,501 |
Schedule of available-for-sale securities, unrealized loss position | Unrealized Losses Fair Value (in thousands) January 31, 2021: U.S. Treasury bills and notes $ 9 $ 1,667 Corporate bonds 17 1,690 Total $ 26 $ 3,357 July 31, 2020: Municipal bonds $ 16 $ 1,963 |
Equity Investments (Tables)
Equity Investments (Tables) | 6 Months Ended |
Jan. 31, 2021 | |
Equity Investments Disclosure [Abstract] | |
Schedule of equity investments | January 31, July 31, (in thousands) Zedge, Inc. Class B common stock, 42,282 shares at January 31, 2021 and July 31, 2020 $ 307 $ 59 Rafael Holdings, Inc. Class B common stock, 28,320 and 27,806 shares at January 31, 2021 and July 31, 2020, respectively 665 389 Fixed income mutual funds 23,374 5,516 Current equity investments $ 24,346 $ 5,964 Visa Inc. Series C Convertible Participating Preferred Stock (“Visa Series C Preferred”) $ 1,939 $ 3,825 Visa Inc. Series A Convertible Participating Preferred Stock (“Visa Series A Preferred”) 2,416 — Rafael Holdings, Inc. warrant 380 — Hedge funds 3,481 4,783 Other 2,225 225 Noncurrent equity investments $ 10,441 $ 8,833 |
Schedule of carrying value of equity investments | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 2,109 $ 3,937 $ 4,109 $ 3,919 Redemption for Visa mandatory release assessment — — (1,870 ) — Adjustment for observable transactions involving a similar investment from the same issuer 114 408 (16 ) 426 Impairments — — — — Balance, end of the period $ 2,223 $ 4,345 $ 2,223 $ 4,345 |
Schedule of unrealized (losses) gains for all equity investments | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Net gains recognized during the period on equity investments $ 1,307 $ 383 $ 387 $ 409 Less: net gains and losses recognized during the period on equity investments sold during the period — — — — Unrealized gains recognized during the period on equity investments still held at the reporting date $ 1,307 $ 383 $ 387 $ 409 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jan. 31, 2021 | |
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) January 31, 2021 Debt securities $ 3,667 $ 17,834 $ — $ 21,501 Equity investments included in current assets 29,470 — — 29,470 Equity investments included in noncurrent assets — 2,416 2,319 4,735 Total $ 33,137 $ 20,250 $ 2,319 $ 55,706 Contingent consideration included in other noncurrent liabilities $ — $ — $ (799 ) $ (799 ) July 31, 2020 Debt securities $ 2,498 $ 15,865 $ — $ 18,363 Equity investments included in current assets 5,964 — — 5,964 Equity investments included in noncurrent assets — — 3,825 3,825 Total $ 8,462 $ 15,865 $ 3,825 $ 28,152 Contingent consideration included in other noncurrent liabilities $ — $ — $ (396 ) $ (396 ) |
Schedule of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 1,825 $ 3,637 $ 3,825 $ 3,619 Purchase of Rafael Holdings, Inc. warrant 354 — 354 — Redemption for Visa mandatory release assessment — — (1,870 ) — Total gains recognized in “Other income, net” 140 408 10 426 Balance, end of period $ 2,319 $ 4,045 $ 2,319 $ 4,045 Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period $ — $ — $ — $ — |
Schedule of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Balance, beginning of period $ 391 $ — $ 396 $ — Transfer into Level 3 from acquisitions (see Note 9) 393 375 393 375 Total loss (gain) included in “Foreign currency translation adjustment” 15 (5 ) 10 (5 ) Balance, end of period $ 799 $ 370 $ 799 $ 370 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) | 6 Months Ended |
Jan. 31, 2021 | |
Acquisitions (Tables) [Line Items] | |
Schedule of acquisition date fair value of consideration | Cash paid $ 2,732 Cash acquired (344 ) Cash paid, net of cash acquired 2,388 Contingent consideration 393 Total fair value of consideration, net of cash acquired $ 2,781 |
Schedule of impact of the acquisition's purchase price allocations on consolidated balance sheet | Trade accounts receivable $ 656 Prepaid expenses 1,644 Property, plant and equipment 75 Goodwill 1,894 Customer relationships (15-year useful lives) 1,960 Tradenames (20-year useful lives) 440 Deferred income tax assets 197 Other assets 161 Trade accounts payable (1,306 ) Accrued expenses (423 ) Other current liabilities (329 ) Noncontrolling interests (2,188 ) Net assets excluding cash acquired $ 2,781 |
Ringsouth Europa, S.L. [Member] | |
Acquisitions (Tables) [Line Items] | |
Schedule of acquisition date fair value of consideration | Cash paid $ 450 Contingent consideration 375 Total fair value of consideration $ 825 |
Other Operating Expense, Net (T
Other Operating Expense, Net (Tables) | 6 Months Ended |
Jan. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of other operating expense, net | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Corporate—Straight Path Communications Inc. class action legal fees net of insurance claims $ (306 ) $ (160 ) $ (4 ) $ (421 ) net2phone-UCaaS—other, net (100 ) (63 ) (100 ) (63 ) Traditional Communications—gain from sale of rights under class action lawsuit 2,000 — 2,000 — Traditional Communications—net2phone indemnification claim (387 ) (169 ) (387 ) (534 ) Traditional Communications—Carrier Services settlement — — (554 ) — Traditional Communications—accrual for non-income related taxes related to a foreign subsidiary — — — (2,150 ) Total other operating gain (expense), net $ 1,207 $ (392 ) $ 955 $ (3,168 ) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jan. 31, 2021 | |
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 Six Months Ended 2021 2020 2021 2020 (in thousands) Basic weighted-average number of shares 25,362 26,320 25,448 26,300 Effect of dilutive securities: Stock options 9 — 4 — Non-vested restricted Class B common stock 342 131 335 — Diluted weighted-average number of shares 25,713 26,451 25,787 26,300 |
Schedule of shares excluded from the diluted earnings (loss) per share | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Stock options 1,035 1,190 1,070 1,190 Non-vested restricted Class B common stock — — — 520 Shares excluded from the calculation of diluted earnings per share 1,035 1,190 1,070 1,710 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jan. 31, 2021 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of accumulated balances for each classification of other comprehensive (loss) income | Unrealized Gain (Loss) on Available-for-Sale Securities Foreign Currency Translation Accumulated Other Comprehensive Loss (in thousands) Balance, July 31, 2020 $ 42 $ (7,452 ) $ (7,410 ) Other comprehensive income (loss) attributable to IDT Corporation 17 (1,564 ) (1,547 ) Balance, January 31, 2021 $ 59 $ (9,016 ) $ (8,957 ) |
Other (Expense) Income, Net (Ta
Other (Expense) Income, Net (Tables) | 6 Months Ended |
Jan. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of other (expense) income, net | Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands) Foreign currency transaction gains $ 1,893 $ 278 $ 1,466 $ 949 Write-off of tax assets related to prior periods — (139 ) — (613 ) Gain on investments 1,307 383 387 409 Other (30 ) 28 (61 ) 40 Total other income, net $ 3,170 $ 550 $ 1,792 $ 785 |
Business Segment Information (D
Business Segment Information (Details) | 6 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segment Information _2
Business Segment Information (Details) - Schedule of operating results of business segments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 339,766 | $ 323,890 | $ 683,191 | $ 664,089 |
Income (loss) from operations | 12,923 | 1,323 | 26,174 | (70) |
Fintech [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 18,497 | 9,741 | 38,585 | 19,298 |
Income (loss) from operations | (247) | (3,177) | 2,889 | (5,847) |
net2phone-UCaaS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 10,738 | 7,915 | 20,366 | 15,122 |
Income (loss) from operations | (3,248) | (3,787) | (7,059) | (7,495) |
Traditional Communications [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 310,531 | 306,234 | 624,240 | 629,669 |
Income (loss) from operations | 18,712 | 10,782 | 34,502 | 18,268 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | ||||
Income (loss) from operations | $ (2,294) | $ (2,495) | $ (4,158) | $ (4,996) |
Revenue Recognition (Details) -
Revenue Recognition (Details) - Schedule of revenues disaggregated by business segment and service offered to customers - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Revenue from External Customer [Line Items] | ||||
Revenues, Total | $ 339,766 | $ 323,890 | $ 683,191 | $ 664,089 |
Total Fintech [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 18,497 | 9,741 | 38,585 | 19,298 |
net2phone-UCaaS [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 10,738 | 7,915 | 20,366 | 15,122 |
Total Traditional Communications [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 310,531 | 306,234 | 624,240 | 629,669 |
BOSS Revolution Money Transfer [Member] | Total Fintech [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 13,280 | 7,660 | 28,438 | 14,861 |
National Retail Solutions [Member] | Total Fintech [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 5,217 | 2,081 | 10,147 | 4,437 |
Mobile Top-Up [Member] | Total Traditional Communications [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 96,562 | 75,836 | 192,397 | 152,669 |
Boss Revolution Calling [Member] | Total Traditional Communications [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 113,903 | 113,861 | 231,253 | 231,195 |
Carrier Services [Member] | Total Traditional Communications [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | 87,155 | 101,659 | 174,928 | 215,176 |
Other [Member] | Total Traditional Communications [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues, Total | $ 12,911 | $ 14,878 | $ 25,662 | $ 30,629 |
Revenue Recognition (Details)_2
Revenue Recognition (Details) - Schedule of revenues disaggregated by geographic region - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Revenue Recognition (Details) - Schedule of revenues disaggregated by geographic region [Line Items] | ||||
Revenues, Total | $ 339,766 | $ 323,890 | $ 683,191 | $ 664,089 |
Outside the United States: | ||||
Total outside the United States | 50,274 | 104,325 | 97,899 | 217,382 |
Fintech [Member] | ||||
Revenue Recognition (Details) - Schedule of revenues disaggregated by geographic region [Line Items] | ||||
Revenues, Total | 18,497 | 9,741 | 38,585 | 19,298 |
Outside the United States: | ||||
Total outside the United States | ||||
net2phone- UCaaS [Member] | ||||
Revenue Recognition (Details) - Schedule of revenues disaggregated by geographic region [Line Items] | ||||
Revenues, Total | 10,738 | 7,915 | 20,366 | 15,122 |
Outside the United States: | ||||
Total outside the United States | 5,061 | 4,220 | 9,608 | 8,155 |
Traditional Communications [Member] | ||||
Revenue Recognition (Details) - Schedule of revenues disaggregated by geographic region [Line Items] | ||||
Revenues, Total | 310,531 | 306,234 | 624,240 | 629,669 |
Outside the United States: | ||||
Total outside the United States | 45,213 | 100,105 | 88,291 | 209,227 |
United States [Member] | ||||
Revenue Recognition (Details) - Schedule of revenues disaggregated by geographic region [Line Items] | ||||
Revenues, Total | 289,492 | 219,565 | 585,292 | 446,707 |
United States [Member] | Fintech [Member] | ||||
Revenue Recognition (Details) - Schedule of revenues disaggregated by geographic region [Line Items] | ||||
Revenues, Total | 18,497 | 9,741 | 38,585 | 19,298 |
United States [Member] | net2phone- UCaaS [Member] | ||||
Revenue Recognition (Details) - Schedule of revenues disaggregated by geographic region [Line Items] | ||||
Revenues, Total | 5,677 | 3,695 | 10,758 | 6,967 |
United States [Member] | Traditional Communications [Member] | ||||
Revenue Recognition (Details) - Schedule of revenues disaggregated by geographic region [Line Items] | ||||
Revenues, Total | 265,318 | 206,129 | 535,949 | 420,442 |
United Kingdom [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 31,929 | 36,154 | 61,350 | 71,950 |
United Kingdom [Member] | Fintech [Member] | ||||
Outside the United States: | ||||
Total outside the United States | ||||
United Kingdom [Member] | net2phone- UCaaS [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 3 | 7 | ||
United Kingdom [Member] | Traditional Communications [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 31,929 | 36,151 | 61,350 | 71,943 |
Netherlands [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 5 | 49,692 | 7 | 104,634 |
Netherlands [Member] | Fintech [Member] | ||||
Outside the United States: | ||||
Total outside the United States | ||||
Netherlands [Member] | net2phone- UCaaS [Member] | ||||
Outside the United States: | ||||
Total outside the United States | ||||
Netherlands [Member] | Traditional Communications [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 5 | 49,692 | 7 | 104,634 |
Other [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 18,340 | 18,479 | 36,542 | 40,798 |
Other [Member] | Fintech [Member] | ||||
Outside the United States: | ||||
Total outside the United States | ||||
Other [Member] | net2phone- UCaaS [Member] | ||||
Outside the United States: | ||||
Total outside the United States | 5,061 | 4,217 | 9,608 | 8,148 |
Other [Member] | Traditional Communications [Member] | ||||
Outside the United States: | ||||
Total outside the United States | $ 13,279 | $ 14,262 | $ 26,934 | $ 32,650 |
Revenue Recognition (Details)_3
Revenue Recognition (Details) - Schedule of information about contract liability balance - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Schedule of information about contract liability balance [Abstract] | ||||
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period | $ 22,818 | $ 24,957 | $ 26,451 | $ 35,146 |
Revenue Recognition (Details)_4
Revenue Recognition (Details) - Schedule of deferred customer contract acquisition costs - USD ($) $ in Thousands | Jan. 31, 2021 | Jul. 31, 2020 |
Schedule of deferred customer contract acquisition costs [Abstract] | ||
Deferred customer contract acquisition costs included in “Other current assets” | $ 3,066 | $ 2,350 |
Deferred customer contract acquisition costs included in “Other assets” | 2,946 | 2,384 |
Total | $ 6,012 | $ 4,734 |
Revenue Recognition (Details)_5
Revenue Recognition (Details) - Schedule of amortization of deferred customer contract acquisition costs - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Schedule of amortization of deferred customer contract acquisition costs [Abstract] | ||||
Amortization of deferred customer contract acquisition costs | $ 864 | $ 615 | $ 1,631 | $ 1,166 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Sep. 01, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 |
Leases (Details) [Line Items] | |||||
Operating lease liability | $ 0.6 | ||||
Newark NJ [Member] | |||||
Leases (Details) [Line Items] | |||||
Lease term, description | The Newark lease expires in April 2025 and the Israel lease expires in July 2025. | ||||
Rafael Holdings, Inc. [Member] | |||||
Leases (Details) [Line Items] | |||||
Lease cost | $ 0.5 | $ 0.5 | $ 0.9 | $ 0.9 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of supplemental disclosures related to the Company's operating leases - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Schedule of supplemental disclosures related to the Company's operating leases [Abstract] | ||||
Operating lease cost | $ 697 | $ 712 | $ 1,425 | $ 1,423 |
Short-term lease cost | 130 | 75 | 195 | 133 |
Total lease cost | 827 | 787 | 1,620 | 1,556 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 672 | $ 685 | $ 1,382 | $ 1,369 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of supplemental disclosures related weighted average operating leases | Jan. 31, 2021 | Jul. 31, 2020 |
Schedule of supplemental disclosures related weighted average operating leases [Abstract] | ||
Weighted-average remaining lease term-operating leases | 3 years 8 months 12 days | 4 years 2 months 12 days |
Weighted-average discount rate-operating leases | 2.90% | 3.12% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of aggregate operating lease liability - USD ($) $ in Thousands | Jan. 31, 2021 | Jul. 31, 2020 |
Other Current Liabilities [Member] | ||
Leases (Details) - Schedule of aggregate operating lease liability [Line Items] | ||
Operating lease liabilities included in “Other current liabilities” | $ 2,537 | $ 2,350 |
Noncurrent Liabilities [Member] | ||
Leases (Details) - Schedule of aggregate operating lease liability [Line Items] | ||
Operating lease liabilities included in noncurrent liabilities | 6,514 | 7,353 |
Operating Lease Liabilities [Member] | ||
Leases (Details) - Schedule of aggregate operating lease liability [Line Items] | ||
Total | $ 9,051 | $ 9,703 |
Leases (Details) - Schedule o_4
Leases (Details) - Schedule of future minimum maturities of operating lease liabilities $ in Thousands | Jan. 31, 2021USD ($) |
Schedule of future minimum maturities of operating lease liabilities [Abstract] | |
2022 | $ 2,768 |
2023 | 2,526 |
2024 | 1,957 |
2025 | 1,844 |
2026 | 497 |
Thereafter | |
Total lease payments | 9,592 |
Less imputed interest | (541) |
Total operating lease liabilities | $ 9,051 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Jul. 31, 2020 |
IDT Financial Services Limited [Member] | ||
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) [Line Items] | ||
Restricted cash and cash equivalents | $ 109.8 | $ 116.3 |
Cash, Cash Equivalents, and R_4
Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) - Schedule of cash, cash equivalents, and restricted cash and cash equivalents - USD ($) $ in Thousands | Jan. 31, 2021 | Jul. 31, 2020 | Jan. 31, 2020 | Jul. 31, 2019 |
Schedule of cash, cash equivalents, and restricted cash and cash equivalents [Abstract] | ||||
Cash and cash equivalents | $ 79,481 | $ 84,860 | ||
Restricted cash and cash equivalents | 109,858 | 116,362 | ||
Total cash, cash equivalents, and restricted cash and cash equivalents | $ 189,339 | $ 201,222 | $ 233,094 | $ 257,199 |
Debt Securities (Details)
Debt Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from maturities and sales of available-for-sale securities | $ 5 | $ 1.9 | $ 11.6 | $ 2.7 |
Debt Securities (Details) - Sch
Debt Securities (Details) - Schedule of available-for-sale securities - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 | |
Marketable Securities [Line Items] | |||
Amortized Cost | $ 21,442 | $ 18,321 | |
Gross Unrealized Gains | 85 | 58 | |
Gross Unrealized Losses | (26) | (16) | |
Fair Value | 21,501 | 18,363 | |
Certificates of deposit [Member] | |||
Marketable Securities [Line Items] | |||
Amortized Cost | [1] | 4,608 | 13,844 |
Gross Unrealized Gains | [1] | 15 | 58 |
Gross Unrealized Losses | [1] | ||
Fair Value | [1] | 4,623 | 13,902 |
U.S. Treasury bills [Member] | |||
Marketable Securities [Line Items] | |||
Amortized Cost | 3,676 | 2,498 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | (9) | ||
Fair Value | 3,667 | 2,498 | |
Corporate bonds [Member] | |||
Marketable Securities [Line Items] | |||
Amortized Cost | 6,233 | ||
Gross Unrealized Gains | 68 | ||
Gross Unrealized Losses | (17) | ||
Fair Value | 6,284 | ||
Municipal bonds [Member] | |||
Marketable Securities [Line Items] | |||
Amortized Cost | 6,925 | 1,979 | |
Gross Unrealized Gains | 2 | ||
Gross Unrealized Losses | (16) | ||
Fair Value | $ 6,927 | $ 1,963 | |
[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) - S_2
Debt Securities (Details) - Schedule of contractual maturities of available-for-sale debt securities $ in Thousands | Jan. 31, 2021USD ($) |
Schedule of contractual maturities of available-for-sale debt securities [Abstract] | |
Within one year | $ 9,688 |
After one year through five years | 6,447 |
After five years through ten years | 4,611 |
After ten years | 755 |
Total | $ 21,501 |
Debt Securities (Details) - S_3
Debt Securities (Details) - Schedule of available-for-sale securities, unrealized loss position - USD ($) $ in Thousands | Jan. 31, 2021 | Jul. 31, 2020 |
Debt Securities (Details) - Schedule of available-for-sale securities, unrealized loss position [Line Items] | ||
Unrealized Losses | $ 26 | |
Fair Value | 3,357 | |
U.S. Treasury bills and notes [Member] | ||
Debt Securities (Details) - Schedule of available-for-sale securities, unrealized loss position [Line Items] | ||
Unrealized Losses | 9 | |
Fair Value | 1,667 | |
Corporate bonds [Member] | ||
Debt Securities (Details) - Schedule of available-for-sale securities, unrealized loss position [Line Items] | ||
Unrealized Losses | 17 | |
Fair Value | $ 1,690 | |
Municipal Bonds [Member] | ||
Debt Securities (Details) - Schedule of available-for-sale securities, unrealized loss position [Line Items] | ||
Unrealized Losses | $ 16 | |
Fair Value | $ 1,963 |
Equity Investments (Details)
Equity Investments (Details) - USD ($) | Feb. 02, 2021 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Dec. 07, 2020 | Sep. 24, 2020 | Jul. 31, 2020 | Jun. 30, 2016 |
MarketSpark, Inc [Member] | Subsequent Event [Member] | |||||||||
Equity Investments (Details) [Line Items] | |||||||||
Purchase paid | $ 4,000,000 | ||||||||
Percentage of convertible outstanding | 23.95% | ||||||||
Equity method investment, description | MarketSpark, which is based in San Diego, California, replaces telephone lines in commercial buildings, such as the ones used in fire panels, elevators, emergency phone lines, point-of-sale terminals, and fax lines, with cellular connections. | ||||||||
Rafael’s Class B Common Stock [Member] | |||||||||
Equity Investments (Details) [Line Items] | |||||||||
Owned shares (in Shares) | 218,245 | ||||||||
Number of shares purchased by warrants (in Shares) | 43,649 | ||||||||
Exercise price (in Dollars per share) | $ 22.91 | ||||||||
Purchase price | $ 5,000,000 | ||||||||
Rafael’s Class B Common Stock [Member] | Rafael Holdings Inc [Member] | |||||||||
Equity Investments (Details) [Line Items] | |||||||||
Purchase price | $ 5,100,000 | $ 5,100,000 | $ 4,600,000 | ||||||
Purchase price per share (in Dollars per share) | $ 22.91 | ||||||||
Rafael Warrants Class B common stock [Member] | Rafael Holdings Inc [Member] | |||||||||
Equity Investments (Details) [Line Items] | |||||||||
Purchase price | $ 400,000 | ||||||||
Visa Series C Convertible Participating Preferred Stock [Member] | |||||||||
Equity Investments (Details) [Line Items] | |||||||||
Owned shares (in Shares) | 1,830 | ||||||||
Convertible shares (in Shares) | 13.722 | ||||||||
Carrying value of shares increased | $ 100,000 | $ 400,000 | $ 400,000 | ||||||
Carrying value of shares decreased | $ 16,000 | ||||||||
Visa Series A Convertible Participating Preferred Stock [Member] | |||||||||
Equity Investments (Details) [Line Items] | |||||||||
Owned shares (in Shares) | 125 | ||||||||
Convertible shares (in Shares) | 6.861 | ||||||||
Visa Series A Convertible Participating Preferred Stock [Member] | Visa Class A Common Stock [Member] | |||||||||
Equity Investments (Details) [Line Items] | |||||||||
Owned shares (in Shares) | 12,500 |
Equity Investments (Details) -
Equity Investments (Details) - Schedule of equity investments - USD ($) $ in Thousands | Jan. 31, 2021 | Jul. 31, 2020 |
Equity Investments (Details) - Schedule of equity investments [Line Items] | ||
Current equity investments | $ 24,346 | $ 5,964 |
Noncurrent equity investments | 10,441 | 8,833 |
Fixed income mutual funds [Member] | ||
Equity Investments (Details) - Schedule of equity investments [Line Items] | ||
Current equity investments | 23,374 | 5,516 |
Other [Member] | ||
Equity Investments (Details) - Schedule of equity investments [Line Items] | ||
Noncurrent equity investments | 2,225 | 225 |
Hedge funds [Member] | ||
Equity Investments (Details) - Schedule of equity investments [Line Items] | ||
Noncurrent equity investments | 3,481 | 4,783 |
Rafael Holdings, Inc. warrant [Member] | Other [Member] | ||
Equity Investments (Details) - Schedule of equity investments [Line Items] | ||
Noncurrent equity investments | 380 | |
Common Stock Class B [Member] | Zedge, Inc. [Member] | ||
Equity Investments (Details) - Schedule of equity investments [Line Items] | ||
Current equity investments | 307 | 59 |
Common Stock Class B [Member] | Rafael Holdings, Inc. warrant [Member] | ||
Equity Investments (Details) - Schedule of equity investments [Line Items] | ||
Current equity investments | 665 | 389 |
Visa Series C Preferred [Member] | ||
Equity Investments (Details) - Schedule of equity investments [Line Items] | ||
Noncurrent equity investments | 1,939 | 3,825 |
Visa Series A Preferred [Member] | ||
Equity Investments (Details) - Schedule of equity investments [Line Items] | ||
Noncurrent equity investments | $ 2,416 |
Equity Investments (Details) _2
Equity Investments (Details) - Schedule of equity investments (Parentheticals) - Common Stock Class B [Member] - shares | 6 Months Ended | 12 Months Ended |
Jan. 31, 2021 | Jul. 31, 2020 | |
Zedge, Inc. [Member] | ||
Equity Investments (Details) - Schedule of equity investments (Parentheticals) [Line Items] | ||
Class B common stock, shares | 42,282 | 42,282 |
Rafael Holdings, Inc [Member] | ||
Equity Investments (Details) - Schedule of equity investments (Parentheticals) [Line Items] | ||
Class B common stock, shares | 28,320 | 27,806 |
Equity Investments (Details) _3
Equity Investments (Details) - Schedule of carrying value of equity investments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Schedule of carrying value of equity investments [Abstract] | ||||
Balance, beginning of period | $ 2,109 | $ 3,937 | $ 4,109 | $ 3,919 |
Redemption for Visa mandatory release assessment | (1,870) | |||
Adjustment for observable transactions involving a similar investment from the same issuer | 114 | 408 | (16) | 426 |
Impairments | ||||
Balance, end of the period | $ 2,223 | $ 4,345 | $ 2,223 | $ 4,345 |
Equity Investments (Details) _4
Equity Investments (Details) - Schedule of unrealized (losses) gains for all equity investments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Schedule of unrealized (losses) gains for all equity investments [Abstract] | ||||
Net gains recognized during the period on equity investments | $ 1,307 | $ 383 | $ 387 | $ 409 |
Less: net gains and losses recognized during the period on equity investments sold during the period | ||||
Unrealized gains recognized during the period on equity investments still held at the reporting date | $ 1,307 | $ 383 | $ 387 | $ 409 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Jul. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Fair value of investments in hedge funds | $ 3.5 | $ 4.8 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Schedule of balance of assets measured at fair value on a recurring basis - Fair Value Measurements, Recurring basis [Member] - USD ($) $ in Thousands | Jan. 31, 2021 | Jul. 31, 2020 | |
Fair Value Measurements (Details) - Schedule of balance of assets measured at fair value on a recurring basis [Line Items] | |||
Debt securities | $ 21,501 | $ 18,363 | |
Equity investments included in current assets | 29,470 | 5,964 | |
Equity investments included in noncurrent assets | 4,735 | 3,825 | |
Total | 55,706 | 28,152 | |
Contingent consideration included in other noncurrent liabilities | (799) | (396) | |
Level 1 [Member] | |||
Fair Value Measurements (Details) - Schedule of balance of assets measured at fair value on a recurring basis [Line Items] | |||
Debt securities | [1] | 3,667 | 2,498 |
Equity investments included in current assets | [1] | 29,470 | 5,964 |
Equity investments included in noncurrent assets | [1] | ||
Total | [1] | 33,137 | 8,462 |
Contingent consideration included in other noncurrent liabilities | [1] | ||
Level 2 [Member] | |||
Fair Value Measurements (Details) - Schedule of balance of assets measured at fair value on a recurring basis [Line Items] | |||
Debt securities | [2] | 17,834 | 15,865 |
Equity investments included in current assets | [2] | ||
Equity investments included in noncurrent assets | [2] | 2,416 | |
Total | [2] | 20,250 | 15,865 |
Contingent consideration included in other noncurrent liabilities | [2] | ||
Level 3 [Member] | |||
Fair Value Measurements (Details) - Schedule of balance of assets measured at fair value on a recurring basis [Line Items] | |||
Debt securities | [3] | ||
Equity investments included in current assets | [3] | ||
Equity investments included in noncurrent assets | [3] | 2,319 | 3,825 |
Total | [3] | 2,319 | 3,825 |
Contingent consideration included in other noncurrent liabilities | [3] | $ (799) | $ (396) |
[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_3
Fair Value Measurements (Details) - Schedule of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | $ 1,825 | $ 3,637 | $ 3,825 | $ 3,619 |
Purchase of Rafael Holdings, Inc. warrant | 354 | 354 | ||
Redemption for Visa mandatory release assessment | (1,870) | |||
Total gains recognized in “Other income, net” | 140 | 408 | 10 | 426 |
Balance, end of period | 2,319 | 4,045 | 2,319 | 4,045 |
Change in unrealized gains or losses for the period included in earnings for assets held at the end of the period |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details) - Schedule of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Schedule of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Abstract] | ||||
Balance, beginning of period | $ 391 | $ 396 | ||
Transfer into Level 3 from acquisitions (see Note 9) | 393 | 375 | 393 | 375 |
Total loss (gain) included in “Foreign currency translation adjustment” | 15 | (5) | 10 | (5) |
Balance, end of period | 799 | 370 | 799 | 370 |
Change in unrealized gains or losses for the period included in earnings for liabilities held at the end of the period |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Millions, $ in Millions | 6 Months Ended | |||
Jan. 31, 2021 | Feb. 02, 2021$ / shares | Dec. 03, 2020USD ($) | Dec. 11, 2019 | |
Acquisitions (Details) [Line Items] | ||||
Contingent consideration, description | The contingent consideration of $0.5 million will be paid (a) no later than November 30, 2021 if the acquired company generates EBITDA of no less than $1.0 million between October 1, 2020 and September 30, 2021; or (b) no later than November 30, 2022 if the acquired company generates EBITDA of no less than $1.0 million between October 1, 2021 and September 30, 2022. | |||
AcquiredMtuco [Member] | ||||
Acquisitions (Details) [Line Items] | ||||
Shares percentage | 51.00% | |||
Loan payable (in Dollars) | $ | $ 0.1 | |||
AcquiredMtuco [Member] | Subsequent Event [Member] | ||||
Acquisitions (Details) [Line Items] | ||||
Purchase price (in Dollars per Share) | $ / shares | 0.3 | |||
Ringsouth Europa, S.L. [Member] | ||||
Acquisitions (Details) [Line Items] | ||||
Shares percentage | 100.00% | |||
Call Option [Member] | AcquiredMtuco [Member] | ||||
Acquisitions (Details) [Line Items] | ||||
Percentage of shares | 5.00% |
Acquisitions (Details) - Schedu
Acquisitions (Details) - Schedule of acquisition date fair value of consideration - AcquiredMtuco [Member] $ in Thousands | 6 Months Ended |
Jan. 31, 2021USD ($) | |
Business Acquisition, Contingent Consideration [Line Items] | |
Cash paid | $ 2,732 |
Cash acquired | (344) |
Cash paid, net of cash acquired | 2,388 |
Contingent consideration | 393 |
Total fair value of consideration | $ 2,781 |
Acquisitions (Details) - Sche_2
Acquisitions (Details) - Schedule of impact of the acquisition's purchase price allocations on consolidated balance sheet $ in Thousands | Jan. 31, 2021USD ($) |
Schedule of impact of the acquisition's purchase price allocations on consolidated balance sheet [Abstract] | |
Trade accounts receivable | $ 656 |
Prepaid expenses | 1,644 |
Property, plant and equipment | 75 |
Goodwill | 1,894 |
Customer relationships (15-year useful lives) | 1,960 |
Tradenames (20-year useful lives) | 440 |
Deferred income tax assets | 197 |
Other assets | 161 |
Trade accounts payable | (1,306) |
Accrued expenses | (423) |
Other current liabilities | (329) |
Noncontrolling interests | (2,188) |
Net assets excluding cash acquired | $ 2,781 |
Acquisitions (Details) - Sche_3
Acquisitions (Details) - Schedule of impact of the acquisition's purchase price allocations on consolidated balance sheet (Parentheticals) | 6 Months Ended |
Jan. 31, 2021 | |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Useful lives | 15 years |
Tradenames [Member] | |
Business Acquisition [Line Items] | |
Useful lives | 20 years |
Acquisitions (Details) - Sche_4
Acquisitions (Details) - Schedule of acquisition date fair value of consideration - Ringsouth Europa, S.L. [Member] $ in Thousands | Dec. 11, 2019USD ($) |
Business Acquisition, Contingent Consideration [Line Items] | |
Cash paid | $ 450 |
Contingent consideration | 375 |
Total fair value of consideration | $ 825 |
Other Operating Expense, Net (D
Other Operating Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Other Operating Expense, Net (Details) [Line Items] | ||||
Received from sale of third party | $ 2 | |||
Straight Path [Member] | ||||
Other Operating Expense, Net (Details) [Line Items] | ||||
Legal fees | 1.4 | $ 0.6 | $ 1.7 | $ 1.2 |
Recorded gains from insurance | $ 1.1 | $ 0.4 | $ 1.7 | $ 0.8 |
Other Operating Expense, Net _2
Other Operating Expense, Net (Details) - Schedule of other operating expense, net - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Schedule of other operating expense, net [Abstract] | ||||
Corporate—Straight Path Communications Inc. class action legal fees net of insurance claims | $ (306) | $ (160) | $ (4) | $ (421) |
net2phone-UCaaS—other, net | (100) | (63) | (100) | (63) |
Traditional Communications—gain from sale of rights under class action lawsuit | 2,000 | 2,000 | ||
Traditional Communications—net2phone indemnification claim | (387) | (169) | (387) | (534) |
Traditional Communications—Carrier Services settlement | (554) | |||
Traditional Communications—accrual for non-income related taxes related to a foreign subsidiary | (2,150) | |||
Total other operating gain (expense), net | $ 1,207 | $ (392) | $ 955 | $ (3,168) |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | Jan. 05, 2021 | Dec. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 |
Equity (Details) [Line Items] | ||||
Proceeds from stock options exercised (in Dollars) | $ 686 | $ 276 | ||
Restricted stock contingent vesting arrangements, description | The restricted shares will vest if: (a) for any fiscal quarter of net2phone 2.0 between November 1, 2020 and October 31, 2023, net2phone 2.0 records subscription revenue that is at least $18 million, and (b) as of October 31, 2023, the valuation of net2phone 2.0 is $100 million or more. The restricted shares will also vest in the event, prior to October 31, 2023, net2phone 2.0 or its assets are sold at an equity valuation and on a cash-free basis of $100 million or more, regardless of whether the revenue threshold was satisfied prior thereto. The restricted shares entitle each grantee to proceeds only on a sale, spin-off, initial public offering, or other monetization of net2phone 2.0 and have protection from dilution for the first $15 million invested in the net2phone 2.0 following the grant. | |||
net2phone 2.0, Inc [Member] | ||||
Equity (Details) [Line Items] | ||||
Percentage of outstanding common stock | 5.00% | |||
Aggregate estimated fair value of equity (in Dollars) | $ 200 | |||
Howard S. Jonas [Member] | net2phone 2.0, Inc [Member] | ||||
Equity (Details) [Line Items] | ||||
Number of restricted shares | 50 | |||
Stock Repurchases [Member] | ||||
Equity (Details) [Line Items] | ||||
Shares remained available for repurchase under the stock repurchase program | 5,800,000 | |||
Common Class B [Member] | ||||
Equity (Details) [Line Items] | ||||
Aggregate repurchased shares | 8,000,000 | |||
Class B common stock for vested shares | 283,838 | |||
Proceeds from stock options exercised (in Dollars) | $ 700 | $ 300 | ||
Class B common stock shares repurchased | 81,041 | 32,551 | ||
Common Class B [Member] | Deferred Stock Units [Member] | ||||
Equity (Details) [Line Items] | ||||
Unvested DSUs outstanding | 154,169 | |||
Common Class B [Member] | Employees [Member] | ||||
Equity (Details) [Line Items] | ||||
Class B common stock shares repurchased | 109,381 | 37,348 | ||
Aggregate purchase price of shares repurchased (in Dollars) | $ 1,300 | $ 300 | ||
Vesting for DSUs | 19,919 | |||
Common Class B [Member] | Stock Repurchases [Member] | ||||
Equity (Details) [Line Items] | ||||
Class B common stock shares repurchased | 463,792 | |||
Aggregate purchase price of shares repurchased (in Dollars) | $ 2,800 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - Schedule of weighted-average number of shares used in the calculation of basic and diluted earnings (loss) per share - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Schedule of weighted-average number of shares used in the calculation of basic and diluted earnings (loss) per share [Abstract] | ||||
Basic weighted-average number of shares | 25,362 | 26,320 | 25,448 | 26,300 |
Effect of dilutive securities: | ||||
Stock options | 9 | 4 | ||
Non-vested restricted Class B common stock | 342 | 131 | 335 | |
Diluted weighted-average number of shares | 25,713 | 26,451 | 25,787 | 26,300 |
Earnings (Loss) Per Share (De_2
Earnings (Loss) Per Share (Details) - Schedule of shares excluded from the diluted earnings (loss) per share - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share | 1,035 | 1,190 | 1,070 | 1,710 |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share | 1,035 | 1,190 | 1,070 | 1,190 |
Non-vested restricted Class B common stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share | 520 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - Schedule of accumulated balances for each classification of other comprehensive (loss) income $ in Thousands | 6 Months Ended |
Jan. 31, 2021USD ($) | |
Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | $ 42 |
Other comprehensive income (loss) attributable to IDT Corporation | 17 |
Ending balance | 59 |
Foreign Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (7,452) |
Other comprehensive income (loss) attributable to IDT Corporation | (1,564) |
Ending balance | (9,016) |
Accumulated Other Comprehensive Loss [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning balance | (7,410) |
Other comprehensive income (loss) attributable to IDT Corporation | (1,547) |
Ending balance | $ (8,957) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Jul. 31, 2020 |
Commitments and Contingencies (Details) [Line Items] | ||
Accrued expenses | $ 41.1 | $ 40.8 |
Purchase commitment | 1.3 | |
Performance bonds outstanding | 19.8 | |
Restricted cash and cash equivalents | 9.8 | $ 11 |
Federal Telecommunications Relay Services Fund [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Invoiced amount | 2.9 | |
Universal Service Fund [Member] | ||
Commitments and Contingencies (Details) [Line Items] | ||
Invoiced amount | $ 1.8 |
Other (Expense) Income, Net (De
Other (Expense) Income, Net (Details) - Schedule of other (expense) income, net - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Schedule of other (expense) income, net [Abstract] | ||||
Foreign currency transaction gains | $ 1,893 | $ 278 | $ 1,466 | $ 949 |
Write-off of tax assets related to prior periods | (139) | (613) | ||
Gain on investments | 1,307 | 383 | 387 | 409 |
Other | (30) | 28 | (61) | 40 |
Total other income, net | $ 3,170 | $ 550 | $ 1,792 | $ 785 |