IDT Corporation Postpones Spinoff of net2phone

Rhea-AI Summary

IDT Corporation (NYSE: IDT) has announced the postponement of its planned spinoff of the net2phone cloud communications segment, initially scheduled for on or before July 31, 2022. The decision comes in response to current market conditions. President Jonah Fink highlighted net2phone's growth and its recent acquisition of Integra, indicating a strong position in North and South America. CEO Shmuel Jonas emphasized plans to enhance net2phone's profitability and business transformation while remaining committed to its long-term growth.

Positive

• Net2phone reported exceptional growth in cloud communications in North and South America.
• Recent acquisition of Integra is expected to create transformational opportunities for net2phone.
• Company remains committed to making net2phone bottom-line accretive.

Negative

• Spinoff postponement may indicate uncertainty in market conditions.
• Delaying the spinoff could prolong investor uncertainty regarding net2phone's future.

NEWARK, NJ, May 05, 2022 (GLOBE NEWSWIRE) -- IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications services, announced today that, in light of current market conditions, its Board of Directors has postponed the spinoff of its net2phone cloud communications segment, which it had been preparing to spin off on or before July 31st, 2022.

“The net2phone team has achieved exceptional results bringing advanced cloud communication solutions to markets in North and South America,” said Jonah Fink, President of net2phone. “We remain very excited by net2phone’s rapid growth, the transformational opportunities created through the recent acquisition of Integra, and the strength of net2phone’s global channel partnerships.”

Shmuel Jonas, IDT’s CEO, added, “While net2phone remains within IDT, we will rapidly execute on a plan to transform net2phone’s business so that it will become bottom line accretive, and we remain resolute in our commitment to grow and monetize the business at an opportune time.”

About IDT Corporation:

IDT Corporation (NYSE: IDT) is a global provider of fintech, cloud and traditional communications services. We make it easy for families to communicate and support each other across international borders. We also enable businesses to transact and communicate with their customers with enhanced intelligence and insight.

Our BOSS Money international remittance and BOSS Revolution international calling services make sending money and speaking with friends and family around the world convenient and reliable. National Retail Solutions’ (NRS) point-of-sale retail network enables independent retailers to operate and process transactions more effectively while providing advertisers and consumer marketers with unprecedented reach into underserved consumer markets. net2phone’s communications-as-a-service solutions provide businesses with intelligently integrated cloud communications and collaboration tools across channels and devices. Our IDT Global and IDT Express wholesale offerings enable communications service enterprises to provision and manage international voice and SMS services.

Contact:
Bill Ulrey
IDT Investor Relations
Phone: (973) 438-3838
E-mail: invest@idt.net

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FAQ

What is the reason for IDT's postponement of the net2phone spinoff?

IDT postponed the net2phone spinoff due to current market conditions.

When was the net2phone spinoff originally scheduled?

The net2phone spinoff was initially scheduled for on or before July 31, 2022.

What insights did IDT provide about net2phone's performance?

IDT reported exceptional results for net2phone, driven by growth in cloud communication solutions.

What transformation plans does IDT have for net2phone?

IDT plans to rapidly execute a strategy to make net2phone bottom-line accretive.

Who leads net2phone and what did they say about its growth?

Jonah Fink, President of net2phone, spoke about its rapid growth and strong market position.