IDT Shares Tumble As Profit Declines

IDT, which operates as a communications and energy company, earned $0.2 million or $0.01 per share for the quarter. This compares to a profit of $7.5 million or $0.33 per share last year.

At IDT Telecom, which forms its main business, sales rose 17 percent to $359 million from the prior year, during gross margin at the segment slipped 330 basis points to 16 percent.

Within IDT Telecom, the primary segment Telecom Platform Services which provides telecommunications solutions and VoIP (Voice over Internet Protocol) services, sales surged 18.4 percent. Nevertheless gross margin shrunk to 15.3 percent from 18.2 percent, on reduced sales of higher margin prepaid calling cards.