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The Board of Directors of IDT Corporation (NYSE: IDT) today raised IDT’s
cash dividend by approximately five percent from $0.22 per share to
$0.23 for the third quarter of IDT’s 2011 fiscal year.
“IDT’s Board made a commitment to pay dividends commensurate with the
Company’s operational performance, financial resources and capital
requirements,” commented IDT’s Chairman and CEO, Howard Jonas. “Our
businesses have continued to generate consistent earnings and cash-flow
and our liquidity and balance sheet have continued to improve even as we
have paid dividends at the prior levels and invested in key growth
opportunities. We are pleased to increase our dividend and continue
sharing profits with our investors.”
The dividend will be paid on July 12, 2011 to shareholders of record of
IDT Corporation Class A Common Stock and Class B Common Stock as of the
close of business on July 1st. The ex-dividend date will be
June 29th.
In addition, a Special Committee of the Board has approved the purchase
by the Company of 302,000 shares of Class B Common stock from Howard
Jonas at $24.83 per share – the closing price for the Class B stock on
Monday, June 20, 2011. Following this purchase, Mr. Jonas will own or
control 1,574,327 shares of IDT Class A Stock and 3,795,859 shares of
IDT Class B Stock, together representing 23.67% of the total outstanding
capital stock of the Company.
“In 2008, Howard Jonas agreed to take his base salary in stock in lieu
of cash for a five-year period,” said the Reverend Eric Cosentino,
Chairman of the Corporate Governance and Special Committees. “His
decision to forego a cash salary provided a timely vote of confidence in
the Company. The Board felt that buying shares directly from Howard
Jonas now was in the best interest of the stockholders. It will avoid
the disruption of having those shares sold into the market while
increasing the relative equity of all shareholders.”
The Company recently disclosed that it was evaluating certain issues
with respect to the previously announced intent to spin-off Innovative
Communications Technologies, Inc, (ICTI). ICTI was to be the holder of
certain patents and the related licensing business of the Company
covering communications over computer networks including Voice over
Internet Protocol (VoIP) communications. On Monday, the Board determined
not to proceed with the spin-off, expressing concern that placing the
enforcement of the patents with an independent entity not under the
Company’s control would increase risks. The Company will continue to
explore options for maximizing the potential returns from the IP while
minimizing the associated risks to create the greatest overall value.
Finally, the Company re-affirmed its current plan to proceed with the
spin-off of Genie Energy (comprising IDT Energy and Genie Oil and Gas).
The Company recently filed a private letter ruling request, seeking the
IRS’ concurrence that a spin-off of Genie Energy would be tax free to
the Company and its shareholders. The Company is awaiting the IRS ruling
and will continue to monitor developments in the markets and the
business units to ensure that a spin-off remains in the best interests
of shareholders. The Company expects the spin-off to go effective in the
fall.
In this press release, all statements that are not purely about
historical facts, including, but not limited to, those in which we use
the words “believe,” “anticipate,” “expect,” “plan,” “intend,”
“estimate, “target” and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995.While these forward-looking statements
represent our current judgment of what may happen in the future, actual
results may differ materially from the results expressed or implied by
these statements due to numerous important factors, including, but not
limited to, those described in our most recent report on SEC Form 10-K
(under the headings “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations”), which may
be revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K.We are under no obligation, and expressly disclaim any
obligation, to update the forward-looking statements in this press
release, whether as a result of new information, future events or
otherwise.
About IDT Corporation:
IDT
Corporation (NYSE:IDT) is a consumer services company with
operations primarily in the telecommunications and energy industries.
Find out more at www.idt.net.
Investor Relations
IDT Corporation
Bill Ulrey, 973-438-3838
E-mail:
invest@idt.net
