Welcome to IDT Corporation's Second Quarter Fiscal 2011 Earnings Presentation. This is Bill Ulrey, IDT's Investor Relations Officer. IDT's Chairman and Chief Executive Officer, Howard Jonas; and Chief Financial Officer, Bill Pereira, will discuss IDT's financial and operational results for the three months ended January 31, 2011. In addition, during today's presentation and from time to time during future quarterly discussions, key managers and executives will provide investors with updates on their respective businesses. Today, you'll hear from Jonathan Reich, Vice President for Sales and Business Development at Fabrix. He will speak following Howard Jonas. Both this audio file, consisting of management's prerecorded remarks, and our earnings release are 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. If, after listening to management’s presentation and reading the company’s earnings release, you have any questions for management related to the announced results, please email them to us at the following address, invest@idt.net, no later than the close of business on Friday, March 18. Please include your name and firm name, if applicable, in your email. If we can constructively answer your question, we will post your question along with your name, your firm’s name and our answer on the IDT Investor Relations page as early as next Wednesday, March 23, after market close. We will also file a Form 8-K with the SEC containing the questions and answers. Any forward-looking statements made during this audio presentation or in the written Q&A, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which we anticipate. These risks and uncertainties include, but are not limited to, specific risks and uncertainties discussed in the reports that we file periodically with the SEC. We assume no obligation either to update any forward-looking statements that we have made or may make or to update the factors that may cause actual results to differ materially from those that we forecast. In this presentation and in our written responses to questions thereafter, we may make references to adjusted EBITDA. Adjusted EBITDA for all periods discussed during our remarks is a non-GAAP measure, representing operating income or loss from operations, exclusive of depreciation and amortization, severance and other charges and other operating gains net. Adjusted EBITDA is one of several key financial metrics management uses to evaluate the operating performances of the company and its segments. A schedule provided in the earnings release reconciles adjusted EBITDA to the nearest corresponding GAAP measure income from operations for each of our segments and to both income from operations and net income for the company as a whole. Now, to begin the discussion of our financial and operating results, here is IDT Corporation's Chairman and CEO, Howard Jonas.

As some of you listening in know, we held an Investor's Day in New York in February. I thought our management team did a wonderful job discussing all the great work being done in the company, and I want to thank and congratulate them. If you haven't listened to their Investor Day presentations nor seen the slides, do yourself a favor and go to the IDT website and get them. After listening to the presentations, you can't help but conclude that IDT is doing extremely well and has great upside potential. There is no better example of that than Fabrix. Jonathan Reich, a Senior Executive of Fabrix, is going to talk to you in greater detail about the company and the opportunity after I'm done with my remarks. By way of background, Fabrix has developed groundbreaking video management software that is changing the way video is stored, delivered and optimized. For example, Fabrix software is now being used to power major North American cable operators' cloud-based DVR offering. We're eliminating the need for cable MSOs to provide and service DVR boxes in the home. Fabrix also won a second contract from another large North American cable provider, who is using the Fabrix platform to greatly expand its video storage library so it can compete with the likes of Netflix and Hulu. Fabrix offers world-class technology and has outperformed the established players in this market to win business for major MSOs. The potential market is enormous, and it is not limited to cable operators. Telcos, satellites, over-the-top providers, as well as other industries with heavy video management requirements, are in our target market, including players in the life sciences, oil and gas, motion picture and surveillance industries. All can benefit from our technology. And I should also point out that other…

Thanks, Howard. I'm grateful for the opportunity to share the Fabrix story with our investors. As you know, we have developed an enterprise class software-based, clustered-storage platform that pulls together all resources in the storage system or cluster to optimize for cost, performance, ease of use and scalability. This design, sometimes referred to as scale-out NAS, is advantageous for verticals including media and entertainment, oil and exploration and life sciences, that utilize large, unstructured and sequential data sets for business purposes. Our solution runs on commercial off-the-shelf equipment, is resilient, self-healing and fault tolerant. Our software can be implemented on a stand-alone basis or can complement legacy systems. We support a multitude of standards and protocols guaranteeing inter-operability. In short, the market is taking an interest in our technology because of the outstanding price performance metrics that we bring to the table. Let's use video as an example to highlight some of these points. Content distribution has changed radically over the past couple of years. With viewers wanting access to any content across any delivery network, from any device, at any time, what is known as the “Four Any’s.” Many of the traditional networks and production houses offer their titles online. Operators are increasing their content libraries. New television networks abound and services like YouTube have experienced exponential growth. Furthermore, accessibility is ubiquitous as the variety of video-enabled devices, including mobile phones, tablets, gaming consoles and Web-connected televisions, grows and they become ever present in the market. At the core, the “Four Any’s” hinge upon the need that service providers have to materially increase their storage capacity, streaming throughput and processing power. And this is exactly where Fabrix fits into the picture. We have built our technology to support an array of features and services that are in high demand.…

Thanks, Jonathan. IDT generated healthy increases in cash from operating activities and in free cash flow in Q2, and we further strengthened our balance sheet even while paying out $10 million in dividends during the quarter. And for the fifth consecutive quarter, IDT reported net income. So with this backdrop of strong value creation defined by cash flow generation, let's now begin a more detailed analysis on the second quarter's results starting with a look at top line growth. At IDT Telecom during Q2, we sought to grow revenue and market share aggressively, particularly in the traditional Wholesale Carrier business. At IDT Energy, we decided to sacrifice gross margin to accelerate growth into new markets in New Jersey and Pennsylvania and to insulate our customers from an upward spike in the cost of electricity, which would have negatively impacted our ability to retain customers in New York against aggressive competition. IDT's revenue increased 10.7% year-over-year and 12.4% sequentially to $401.5 million. The growth was generated within IDT Telecom and, specifically, within our core Telecom Platform Services segment. TPS revenues jumped $44 million year-over-year or 15.2% and $31.9 million sequentially, 10.6%, to $334.4 million. Within TPS, all four sales channels, wholesale carrier, retail, reseller and direct sales, reported year-over-year revenue increases with the wholesale carrier channel accounting for most of the increase. You may recall that the wholesale carrier channel had relatively flat top line performance throughout fiscal 2010, but then grew revenue 12% sequentially during fiscal Q1. I mentioned during last quarter's call that we were not prepared to confirm whether this indicated a fundamental change in the marketplace. Well, the verdict is still not in, but the indicators are looking pretty good. In Q2, revenues for the wholesale carrier channel grew 15% sequentially and 23% year-over-year. Retail, the other…