IDT (IDT) swung to a profit from a year-earlier loss in the first quarter, driven by robust sales growth in its telecom platform services business.
The Newark-based telecom equipment maker posted net income of $3.6 million, or 16 cents a share, compared with a year-earlier loss of $4.3 million. Excluding one-time items, IDT earned 45 cents, topping average analyst estimates in a Thomson Reuters poll by 10 cents.
Revenue for the three months ended Oct. 31 grew 6.3% to $400.6 million, beating the Street’s $394.1 million, as sales improved in its telecom platform services business, particularly retail communications and payment services.
Those gains in IDT’s largest operating unit helped offset year-over-year sales declines in its wholesale termination services group and hosted platform solutions.
“IDT Telecom generated healthy revenue, gross profit and bottom line increases,” IDT CEO Howard Jonas said in a statement. “We are confident that the investments we are making in technology, new product development and other initiatives will continue to drive growth.”