IDT Carmel Sells Entire Consumer Debt Portfolio for $18.35 Million

IDT Corporation (NYSE: IDT; IDT.C) said today that it has closed a transaction to sell substantially all of the consumer debt portfolio held by its IDT Carmel division for $18.35 million.

"The sale of our existing debt portfolio advances IDT’s previously announced strategic objectives. We have eliminated our exposure to fluctuations in debt portfolio valuations during a time of great volatility in that market, increased our working capital, and further narrowed management’s focus on core business operations," said IDT CEO Jim Courter. IDT stated that it has no current plans to acquire additional debt portfolios.

IDT entered the debt collection and portfolio management business in 2006. During Fiscal 2007, its IDT Carmel division purchased consumer debt portfolios for an aggregate purchase price of $78.4 million and realized $5.4 million in revenue. In Fiscal 2008, IDT Carmel reported $45.6 million in revenue, and an additional $8.9 million during the first quarter of Fiscal 2009. As of October 31st, 2008, IDT Carmel’s portfolio was valued at $59.5 million. The Company said it expected to report a write down of current and long term assets from discontinued operations totaling $37 million during the 2nd quarter of its 2009 fiscal year as a result of the sale announced today.

About IDT Corporation
IDT Corporation (www.idt.net) is a consumer-focused multinational holding company. IDT Corporation’s Class B Common Stock and Common Stock trade on the New York Stock Exchange under the ticker symbols IDT and IDT.C, respectively.