IDT Posts It's First Quarter 09 Results

IDT just announced their Q1 09 results yesterday and the results were as expected! The company is still seeing overall loses but at a much reduced rate than in previous quarters largely because they have paid out most of their outstanding debt to the IRS, severance packages etc.... They have also significantly reduced their operational expenses by streamlining their work force and working on Network efficiencies.

They seemed optimistic about the prepaid pone card business in the United States claiming that their legal actions against unfair marketing practices have helped turn the tide in their business and are seeing steadier numbers now.

Overall I won't bore you with all of the financial results (if you want to see them please view their official release) but the long and short of it is that IDT is still continuing to dump unprofitable business units and is seemingly just in survival mode right now! Other than Zedge, and Shale Oil they don't appear to be working on any long term new business strategies and as a result the stock prices didn't go up too much on the news of their results. Investors want to see the possibility for long term growth, but IDT seems to be in short term survival mode at this point and it is clearly visible.

Survival mode is not necessarily a bad thing, as IDT needs to get its core business's act together, and most importantly profitable, before it can go out and spend money on long term strategies. It looks like IDT still has a few quarters to go before it sees true operational profitability but at least it is a step in the right direction.