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Technology Stocks : IDT *(idtc) following this new issue?* -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (1398)	1/14/1999 9:13:00 PM
From: Secret_Agent_Man	Read Replies (4) \| Respond to of 30916

IDT Revises Earnings Estimates, Announces Management Additions January 14, 1999 08:53 PM HACKENSACK, N.J.--(BUSINESS WIRE)--Jan. 14, 1999-- Gross margins to fall short of consensus analysts' estimates, revenues remain strong IDT Corporation IDTC today announced that earnings will fall below consensus analysts' expectations for the current quarter and through the end of December 1999, primarily due to delayed network deployment. For the current quarter, IDT expects that earnings will fall short of such expectations by approximately $.10 per share. The Company expects that its revenues will stay in line with, or even exceed expectations. IDT believes that its gross margins will be temporarily affected primarily due to slower than anticipated interconnections with PTTs, competitive carriers and alternative routes, and increased losses from its Internet business and its Net2Phone business. In addition, IDT attributes the decline in gross margins to delays by telecom equipment suppliers to provide certain equipment that is necessary to deploy its offshore sites, and the costs of maintaining a redundant network as it migrates its domestic traffic from the current leased network to network recently acquired from Frontier Communications and other carriers. The Company anticipates the migration process to continue for two to three more quarters. In the interim, the Company sees continued strength in both its domestic and international traffic in anticipation of its network deployment. The Company also announced several management additions and changes. Yoav Krill, the former president of Bezeq International, will assume the responsibility of Senior Vice President of Global Networks. While at Bezeq, Mr. Krill was responsible for its international strategy, including managing all sales and marketing, network and operational efforts. In addition, IDT has entered into an agreement with Global Telesolutions, pursuant to which IDT and Global Telesolutions will jointly develop portions of IDT's international network. Anand Kumar, the founder and President of Global Telesolutions, is the co-founder and former Executive Vice President of Facilicom International. Mr. Kumar was responsible for building Facilicom from a small Scandinavian carrier to a global facilities-based carrier, and has also held positions with AT&T, Bell Canada and Bell Labs. Each of Mr. Krill and Mr. Kumar have over 30 years of experience in the telecommunications industry. Furthermore, Howie Balter, IDT's Vice Chairman and COO was named the CEO of Net2Phone, and will lead the efforts to finance and build the business as he has successfully done at IDT. In his stead, Hal Brecher, IDT's Vice President of Operations since November 1996, has been named the COO of IDT. In addition, Ilan Slasky, IDT's Executive VP of Finance, will become the CFO of Net2Phone. In order to concentrate their efforts on the business of Net2Phone, which IDT intends to continue to develop aggressively, it is anticipated that both will resign their positions at IDT. IDT is a leading emerging multinational carrier that combines its position as an international telecommunications operator, its experience as an Internet service provider and its leading position in Internet telephony to provide a broad range of telecommunications services to its wholesale and retail customers worldwide. The company provides its customers with integrated and competitively priced international and domestic long distance, pre-paid calling cards, Internet access and, through its Net2Phone product offerings, Internet telephony services including Net2Phone Direct, Net2Fax, and Click2Talk. For more information about IDT's services, please visit www.idt.net. businesswire.com