Business Segment Information

6 Months Ended

Jan. 31, 2014

Business Segment Information [Abstract]

Business Segment Information

Note 8—Business Segment Information

The Company has three reportable business segments, Telecom Platform Services and Consumer Phone Services, which comprise the IDT Telecom division, and Zedge Holdings, Inc. (“Zedge”). All other operating segments that are not reportable individually are included in All Other. The Company’s reportable segments are distinguished by types of service, customers and methods used to provide their services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker.

The Telecom Platform Services segment provides telecommunications services, including prepaid and rechargeable calling products and international long distance traffic termination, as well as various payment services. The Consumer Phone Services segment provides consumer local and long distance services in the United States. Zedge owns and operates an on-line platform for mobile phone consumers interested in obtaining free and relevant, high quality games, apps, and personalization content such as ringtones, wallpapers, and alerts. All Other includes Fabrix, a software development company specializing in highly efficient cloud-based video processing, storage and delivery, the Company’s real estate holdings, and other smaller businesses. Corporate costs include certain services, such as compensation, consulting fees, treasury and accounts payable, tax and accounting services, human resources and payroll, corporate purchasing, corporate governance including Board of Directors’ fees, internal and external audit, investor relations, corporate insurance, corporate legal, business development, and other corporate-related general and administrative expenses including, among others, facilities costs, charitable contributions and travel, as well as depreciation expense on corporate assets. Corporate does not generate any revenues, nor does it incur any direct cost of revenues.

The accounting policies of the segments are the same as the accounting policies of the Company as a whole. The Company evaluates the performance of its business segments based primarily on income (loss) from operations. IDT Telecom depreciation and amortization are allocated to Telecom Platform Services and Consumer Phone Services because the related assets are not tracked separately by segment. There are no other significant asymmetrical allocations to segments.

Operating results for the business segments of the Company are as follows:

(in thousands)	Telecom Platform Services		Consumer Phone Services		Zedge		All Other			Corporate			Total
Three Months Ended January 31, 2014
Revenues	$	398,016	$	2,850	$	$1,727	$	3,830		$	—		$	406,423
Income (loss) from operations		12,372		421		152		(1,465	)		(3,906	)		7,574
Three Months Ended January 31, 2013
Revenues	$	402,758	$	3,714	$	$1,626	$	3,358		$	—		$	411,456
Income (loss) from operations		10,050		437		185		(589	)		(4,428	)		5,655
Six Months Ended January 31, 2014
Revenues	$	810,741	$	5,866	$	$3,165	$	7,321		$	—		$	827,093
Income (loss) from operations		24,261		841		314		(2,076	)		(8,483	)		14,857
Six Months Ended January 31, 2013
Revenues	$	794,791	$	7,729	$	$2,780	$	6,273		$	—		$	811,573
(Loss) income from operations		19,090		1,036		118		(698	)		(7,207	)		12,339