Hello and welcome to the IDT Corporation’s Second Quarter Fiscal Year 2016 Earnings Conference Call. During management’s prepared remarks all participants will be in listen-only mode. [Operator Instructions] After today’s presentation by IDT’s management, there will be an opportunity to ask questions. [Operator Instructions] In today’s presentation, Shmuel Jonas, CEO of IDT Corporation will discuss IDT’s financial and operational results for the three months ended January 31, 2016. 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 either to 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 that they forecast. In their presentation or in the Q&A that will follow, IDT’s management may make reference to the non-GAAP measures, adjusted EBITDA, non-GAAP net income and non-GAAP diluted EPS. A schedule provided in the earnings release reconciles adjusted EBITDA, non-GAAP net income, and non-GAAP diluted EPS to the nearest corresponding GAAP measures. Please note that the IDT earnings release is available on the Investor Relations page at the IDT Corporation website, www.idt.net. The earnings release has also been filed on a Form 8-K with the SEC. I would now like to turn the conference over to Mr. Jonas.

Thank you, operator. Welcome to IDTs second quarter fiscal 2016 earnings conference call. My remarks today will focus on key operational and financial results for the three months ended January 31, 2016. Throughout my remarks, unless I indicate otherwise, I will compare the second quarter’s results to the year ago quarter. For a comprehensive and detailed discussion of our results, please read our earnings release issued earlier today and our Form 10-Q, which we expect to file with the SEC by March 11. Following my remarks, Marcelo Fischer, IDT’s Senior Vice President of Finance and IDT Telecom’s Chief Financial Officer will join me and we will be glad to take your questions. I’m going to start by talking a bit about Zedge, since its top of mind for many of our investors. We intend to file the information statement for the Zedge spin-off later this month and complete the process before the end of our fiscal year. Zedge had a fantastic quarter, generating record levels of revenue, adjusted EBITDA and income from operations. Revenue climbed to $3.5 million in the second quarter from $2.4 million in the year ago quarter and $2.6 million in the prior quarter. The year-over-year increase reflects continued growth in users and user engagement while the seasonal increase reflects these factors as well as increased advertising demand around the holiday season. Zedge’s adjusted EBITDA increased to $1.6 million from negative $382,000 in the year ago quarter and more than doubled compared to Q1. These accomplishments reflect Zedge’s scalable business model, whereby increases in revenue flow to the bottom line without commensurate increases in cost. Turning now to IDTs consolidated results for the second quarter. We achieved year-over-year increases in adjusted EBITDA, income from operations and earnings despite having lower revenue. Sequentially however, revenue, adjusted EBITDA, income…

We will now begin the question-and-answer session. [Operator Instructions] Our first question is from John Rolfe at Argand Capital.

Hey, guys. Couple questions for you. First on Zedge, could you just explain a little better, Zedge's profitability in the quarter was fantastic. I’m just trying to understand how the EBITDA growth sequentially in aggregate dollars was actually greater than the revenue growth? Presumably there were some expenses that were running through previously that you were able to carve out or put a stop to this quarter, but what were sort of the underlying dynamics there?

I guess it’s exactly as a you stated in the question, there were some expenses that were one-time in the past quarter that didn’t end up this quarter.

Hi John, it’s Marcelo. Also bear in mind that most of the cost that Zedge incurs occur in their hub, which is in Norway. So most of their expenses are Krona denominated.

Okay.

On the flip side, most of the cash flows are from sales that happens still in the U.S. which is dollar denominated. And therefore when the dollar is strong, it really helps the P&L.

Okay. Okay. Got it. And can you talk a little bit about where you guys stand in terms of getting some of the issues with the Apple iTunes store resolved? I guess they've had some issues in terms of Zedge's remaining compliant with some of Apple’s terms and I know you guys have been working to get that resolved, but just wondering if you have any sense on timing there.

We submitted the new [F] yesterday. And we expect it to be approved.

Okay. Okay. Great. That's good news. And then secondly, in terms of TPS, look I understand the concept behind negative operating leverage and why you saw a sequential decline in EBITDA as a result. But I’m just trying to understand what was different in terms of Q1 to Q2 versus Q4 to Q1 because in Q4 to Q1, you were also experiencing the headwinds in the Mexican Corridor and you had some aggregate revenue declines, but you were still able to maintain and even increase your EBITDA. So what was the difference in the dynamics between those two quarters or those two sets of quarters?

Yes we -- the large amount of the decrease relating to Mexico impacted us a lot more year-over-year and sequentially as we came into Q2 and that kind of -- and that was offset by some extent by -- in Q1, we had more of a growth on all those regions to offset some of the Mexico decline. As we went into Q2 the growth in the other regions was basically flat and therefore we felt the impact of the Mexico Corridor rather decline a little stronger. On the flip side, as it comes to SG&A, our SG&A in Q2 was significantly lower than Q1 as we continue to feel the impact, the positive impact of some of the cost cutting and other initiatives that we have put in place already a couple of quarters ago. So that net-net of EBITDA came out pretty close to what we saw in the previous quarters.

Okay. Okay. Got it. And then lastly, can you just repeat what did you say your expectation was on the timing of the full roll out for the Boss Revolution App?

We’re hoping that it will be rolled out in the next two months. I have as I said, I have a Beta Version of it on my phone right now, but it’s going through Q&A and testing and we got to make sure it's solid before we release it.

Okay. Okay. Great. Thanks very much guys.