Barron's Articles Put IDTs Future in a Bad Light!

Most of us have been well aware of IDTs recent hardships as made evident through their last few quarters of poor performance but a recent Barron's article paints a desperate picture for IDTs future.

In a series of two articles this month, "A Troubled Telecom Falls Further" and "Bad Signals" Barrons has really painted a bleak picture of IDTs future. The basic premise is that while IDT has been saved by it's large cash reserve in recent years, it looks as if IDT will need to keep using that cash reserve. So much so that Barrons predicts it will run out of cash in as little as two years. It even hints that the executives are most likely not too confident in the companies future since they seem to be selling off their shares at a much more regular interval.

The articles aren't scathing and put most of the blame for IDTs problems on the rise in wireless and VOIP as the popular long distance calling methods. It also points to IDTs huge losses from its purchase of Winstar, a transaction for which they are now suing over based on false promises and bad information.

While this information should come as nothing new to industry insiders, it does place a heavy wake up call to the real future of a once dominant telecom company.