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Business Segment Information
 6 Months Ended
Jan. 31, 2017
Business Segment Information [Abstract]  
Business Segment Information

Note 12—Business Segment Information

 

The Company has three reportable business segments, Telecom Platform Services, Unified Communications as a Service (“UCaaS”) and Consumer Phone Services. 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 retail telecommunications and payment offerings as well as wholesale international long distance traffic termination. The Consumer Phone Services segment provides consumer local and long distance services in certain U.S. states.

 

Beginning in the first quarter of fiscal 2017, UCaaS is a separate reportable segment. The UCaaS segment is comprised of offerings from the Company’s net2phone division, including (1) cable telephony, (2) hosted PBX, (3) SIP trunking, which supports inbound and outbound domestic and international calling from an IP PBX, and (4) PicuP, a highly-automated business phone service that answers, routes and manages voice calls. The operations that comprise the UCaaS segment were included in the Telecom Platform Services segment from the inception of each until July 31, 2016. Comparative results have been reclassified and restated as if UCaaS was a separate segment in all periods presented.

 

Telecom Platform Services, UCaaS and Consumer Phone Services comprise the IDT Telecom division.

 

Operating segments not reportable individually are included in All Other. All Other includes the Company’s real estate holdings and other smaller businesses. Prior to the Zedge Spin-Off, All Other included Zedge, which provides a content platform that enables consumers to personalize their mobile devices with free ringtones, wallpapers, home screen app icons and notification sounds. 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, UCaaS 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

     UCaaS    

Consumer

Phone

Services

     All Other     Corporate     Total  
Three Months Ended January 31, 2017                                    
Revenues   $ 358,528     $ 7,142     $ 1,396     $ 490     $ —     $ 367,556  
Income (loss) from operations     6,948       (464 )     239       82       (3,677 )     3,128  
Other operating expense     —       —       —       —       (889 )     (889 )
                                                 
Three Months Ended January 31, 2016                                                
Revenues   $ 370,575     $ 6,117     $ 1,766     $ 3,996     $ —     $ 382,454  
Income (loss) from operations     6,878       (576 )     289       1,845       (2,059 )     6,377  
Other operating expense     (326 )     —       —       —       —       (326 )
                                                 
Six Months Ended January 31, 2017                                                
Revenues   $ 718,550     $ 14,278     $ 2,885     $ 994     $ —     $ 736,707  
Income (loss) from operations     13,192       (639 )     540       172       (4,951 )     8,314  
Other operating expense     —       —       —       —       (1,088 )     (1,088 )
                                                 
Six Months Ended January 31, 2016                                                
Revenues   $ 749,217     $ 13,163     $ 3,595     $ 7,057     $ —     $ 773,032  
Income (loss) from operations     16,905       (878 )     629       2,275       (4,628 )     14,303  
Other operating expense     (326 )     —       —       —       —       (326 )