Business Segment Information

6 Months Ended

Jan. 31, 2020

Segment Reporting [Abstract]

Business Segment Information

Note 14—Business Segment Information

The Company has two reportable business segments, Telecom & Payment Services and net2phone. 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 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.

The Telecom & Payment Services segment provides retail telecommunications and payment offerings as well as wholesale international long-distance traffic termination. The net2phone segment provides unified cloud communications and telephony services to business customers. Depreciation and amortization are allocated to Telecom & Payment Services and net2phone because the related assets are not tracked separately by segment. There are no other significant asymmetrical allocations to segments.

Corporate costs include 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, charitable contributions, travel and other corporate-related general and administrative expenses. Corporate does not generate any revenues, nor does it incur any direct cost of revenues.

Operating results for the business segments of the Company are as follows:

(in thousands)	Telecom & Payment Services			net2phone			Corporate			Total
Three Months Ended January 31, 2020
Revenues	$	310,980		$	12,910		$	—		$	323,890
Income (loss) from operations		7,135			(3,317	)		(2,495	)		1,323
Other operating expense, net		—			(232	)		(160	)		(392	)
Three Months Ended January 31, 2019
Revenues	$	337,950		$	11,523		$	—		$	349,473
Income (loss) from operations		4,191			(1,897	)		(2,751	)		(457	)
Other operating expense, net		(1,785	)		25			(330	)		(2,090	)
Six Months Ended January 31, 2020
Revenues	$	638,552		$	25,537		$	—		$	664,089
Income (loss) from operations		11,506			(6,580	)		(4,996	)		(70	)
Other operating expense, net		(2,150	)		(597	)		(421	)		(3,168	)
Six Months Ended January 31, 2019
Revenues	$	689,799		$	21,990		$	—		$	711,789
Income (loss) from operations		8,360			(3,397	)		(5,238	)		(275	)
Other operating expense, net		(2,885	)		25			(525	)		(3,385	)