Good afternoon, and welcome to the IDT Corporation's first quarter 2015 earnings conference call. [Operator instructions.] In today's presentation, IDT's Chief Executive Officer, Shmuel Jonas, will discuss IDT's financial and operational results for the 3- and 12-month's periods ended October 31, 2014. Any forward-looking statements made during this conference call, either in the prepared remarks or in the Q&A session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates. These risks and uncertainties include, but are not limited to, specific risks and uncertainties discussed in the reports that IDT files periodically with the SEC. IDT assumes no obligation to either update any forward-looking statements that they have made or may make, or to update the factors that may cause actual results to differ materially from those they forecast. In their presentation or in the Q&A, IDT's management may make reference to the non-GAAP measures adjusted EBITDA, non-GAAP net income, and non-GAAP EPS. A schedule provided in the earnings release reconciles adjusted EBITDA, non-GAAP net income, and non-GAAP EPS to the nearest corresponding GAAP measures. Please note that the IDT earnings release is available on the Investor Relations page of the IDT Corporation website, www.idt.net. The earnings release has also been filed on a Form 8-K with the SEC. Finally, please note this event is being recorded. I would now like to turn the conference over to IDT's Chief Executive Officer, Shmuel Jonas. Please go ahead.

Thank you very much. My remarks today will focus on key operational and financial results for the first quarter of our fiscal year 2015, the three months ended October 31, 2014. Throughout my remarks, unless otherwise indicated, the financial results I discuss are for that quarter and are compared to the first quarter of fiscal 2014. For a more comprehensive and detailed discussion of our results, please read our earnings release issued earlier today and our form 10-Q, which should be filed later this week. Following my remarks, Marcelo Fischer, IDT Telecom’s chief financial officer, will join me and we’ll be glad to take your questions. As most of you know, we closed on the sale of our stake in Fabrix this quarter and reported a $75.1 million gain as a result. Subsequently, our board declared a special dividend of $0.68 per share. In addition, and in light of our recent results, we have raised our quarterly dividend to $0.18 per share from the $0.17 per share we paid quarterly in fiscal 2014. As I mentioned last quarter, we are looking at several options for the remaining cash from the sale, including acquisitions, stock buybacks, and additional special dividends to shareholders. We will provide more information when developments warrant. Turning now to our operational results for the first quarter of fiscal 2015, revenue on a consolidated basis was $412.9 million compared to $420.7 million in the first quarter of 2014. At IDT Telecom, which accounted for 98.4% of our total revenue, revenue was $406.1 million compared to $415.8 million. Boss Revolution Pinless continued on a solid growth trajectory. Revenues increased 17.2% year over year and 2.9% sequentially. We continue to enjoy healthy customer growth, offset somewhat by declining ARPU, driven by declining permanent rates and costs. For the remainder of…

[Operator instructions.] And our first question comes from Jay Srivatsa of Chardan Capital Markets.

I know you don’t provide guidance, but your Q2 has tended to be roughly flat sequentially from Q1 in the past. Is that still the trend you expect, or is there anything to change the pattern?

I don’t think that there’s anything to change it dramatically. I mean, business is increasing, but not dramatically.

Just to remind you that in Q1, we still had two months of activity of Fabrix, which of course will not repeat itself in Q2. So if you want to look apples to apples, you have to remove those months of activity for Fabrix.

In the previous earnings call, you had commented about how the increase in SG&A could potentially depress the EBITDA for next year. Now that you believe that SG&A expenses have been down, is there any change to your expectations for EBITDA for fiscal 2015?

Again, I don’t expect it to be quite as strong as 2014 was on the top line for telecom, but I expect it will be a little better than we had budgeted for.

And then in terms of the money remittance business, can you give us an update on how many states you have licenses now, how many agents and retailers have you signed up, and is there any change to the timeline in terms of when it can become meaningful?

I’m going to let Marcelo answer that question.

Sure. In terms of states that we are licensed, today we are licensed in every state except for the state of New York, for which we are still waiting to receive a license. We keep following up every few weeks, and we’re just waiting for that license to come. So from a licensing standpoint, we are able to go anywhere we want right now and launch the product. But for this fiscal year, we have limited ourselves to launch this service only to 20 states, and intend to execute on that plan for the time being. Some of the more [trophy] states, like California and eventually New York will be deferred until the next fiscal year. In terms of number of agents, we keep on adding agents at a fast pace. At this point, we have more than 350 active agents and we keep on adding anywhere between 10 to 30 every week. So it’s ramping up, and [unintelligible] ramping up as well.

In the past, you had looked at spinning of Zedge. Any progress to that, and any update, please?

We don’t have any updates yet. I think Zedge is really starting to blossom, but rather than I guess overpromise and underdeliver, I’d rather underpromise and overdeliver. But we’re very excited about where Zedge is going.

Our next question comes from John Rolfe of Agrand Capital.

I think you said that you were still expecting double digit year-to-year revenue growth in retail communications for this fiscal year. And that’s versus, if my numbers are right, what was about 6% growth in the first quarter here. So you’re expecting, I guess, an acceleration in the growth rate in the remainder of the year, and at the same time, you mentioned that you had actually laid some salespeople off. So I’m just trying to reconcile those two countervailing trends there. Is the growth in the remainder of the year being driven in large part by some of those new products that you talked about?

Our guidance has been that Boss Revolution Pinless would continue to grow double digits year over year. We have said in the past that total retail communications, which includes also our traditional calling cards, which are actually in decline, that will probably continue to grow at the low single digits. So our guidance hasn’t really changed, and we think that the results in Q1 is very consistent to the guidance that we have provided. In terms of your comments on some of the cuts that we have made, that was a strategic decision. It affected primarily our retail business in Europe, which has seen a lack of growth for quite a while. So we decided to downsize it a bit to make sure that that business continues to be profitable for us. We [impacted] the U.S. just a little bit, and adopted here in the U.S., when it comes to the [turn] of sales force. We continue to add our top managers to run that business, to expand Boss Revolution’s footprint into other states and to hire more specialized account managers in the payments area. We continue to do so at the same rate that we have been doing thus far.

I think I heard you say that you were expecting, with respect to EBITDA, sort of flattish EBITDA to possibly a slight increase. I guess A, is that what I heard you say earlier in the call in your prepared remarks, and secondly, if so, were you talking about EBITDA on a consolidated basis or in [TPS] or what exactly were you referring to?

First of all, we need to realize that the EBITDA on a consolidated basis will go down because of the deconsolidation of Fabrix. Fabrix used to bring roughly about a million dollars of EBITDA on a quarterly basis, so now you have to adjust the EBITDA downwards on a consolidated basis for the lack of Fabrix. Excluding Fabrix, our objective is to continue to deliver EBITDA probably at the same levels that we are at right now. Obviously, if we see more opportunities to grow, especially our payments businesses, a little faster, we may increase some SG&A spending behind marketing and some other promotional activities, which may have a relatively small impact to EBITDA. But if we decide to do so, it’s because we really believe that it’s going to be good [unintelligible] on that investment, and we will look forward, if we have to reduce EBITDA a bit in order to grow that business a little faster.

So just to confirm what you just said, then, absent seeing the ability to invest more on the sales and marketing side, the current quarter run rate for EBITDA is a reasonable sort of proxy going forward, and then subsequently adjusting for, I would assume in this quarter, what you had two months of Fabrix, so I need to take the current quarter run rate, back out a little bit of EBITDA because Fabrix disappeared, and your goal would be to sort of maintain that run rate for the year. Is that correct?

Yeah, correct. To be precise, this quarter Fabrix delivered a million dollars of EBITDA to IDT in Q1.

So then when I look at the consolidated EBITDA for the quarter, which was about 10.5, you’re saying ex Fabrix, it was closer to 9.5, and that’s sort of the run rate.

9.4 to be precise, yeah.

And last of all, I think when you had talked about some of the acquisition opportunities you were looking at on the last call, you had said there was one that could be reasonably material in size and in addition there were a number of smaller opportunities. Are all of those still alive? Have any of them dropped away at this point? Has anything really changed in terms of the range of opportunities that you were looking at last quarter?

I would say the largest one we were looking at is looking a little bit further off than we would hope. However, a bunch of the smaller ones we’re looking at are still there and we’re still looking at them.

This concludes our question and answer session and conference call. Thank you for attending today’s presentation. You may now disconnect.