IDT shares hit 52-week low (new jersey star-ledger)
by Tom Johnson/Star-Ledger Staff
Wednesday March 12, 2008, 12:21 PM
Investors yesterday pummeled IDT as the telecommunication company's shares plunged more than 25 percent, the day after it reported its quarterly losses had more than doubled and revenues continued to fall in its core buisiness.
Shares of the Newark company fell by 28 percent in mid-day trading, dropping $1.60 to $4.10, far below its 52 week-low of $5.33. IDT reported after the market closed Tuesday a quarterly loss of $62.5 million, or 83 per cents per share, compared to $27 million, or 33 cents per share it lost in the same period a year ago.
In a conference call with analysts, IDT CEO James Courter called the quarter "difficult'' and "disappointing.'' Besides seeing revenue continue to drop in its core telecom business, the company reported losses associated with higher litigation expenses and took a $16 million writedown, or a 15 percent drop in value, of its new debt collection business.
"Basically, they are learning their new businesses on the stockholders' dime, and shareholders are not happy at it,'' said Clay Moran, an analyst with the Stanford Group, referring to the beating the shares were taking yesterday. |
