We’ve witnessed major management transition at IDT. First, CEO Ted Tewksbury resigned a couple weeks ago. Then this week, CFO Rick Crowley announced he will leave IDT to become CFO at Intersil. My first comment is best of luck to Ted, Rick and IDT. I think highly of the two gentlemen as well as the direction of IDT.
The changes highlight the current dynamism in the semis industry. Like at numerous technology companies, activist shareholders took board seats at IDT, in this case Starboard, a little more than one year ago. Since that time, IDT has also undergone many changes in its business, including publicly announced divestitures and delivery of exciting new products (see wireless charging). In addition, the share price of IDT has risen approximately 60% over the last 12 months.
Despite IDT’s impressive accomplishments of late, the Company faces significant challenges as it competes in what many consider a consolidating and maturing industry. I don’t know the cause/effects of the board and management changes at IDT, but I do know they are symptomatic of the industry as a whole as it moves forward in what remains a challenging market.