Segment Information

6 Months Ended

Jun. 30, 2014

Segment Information [Abstract]

Segment Information

NOTE 12: SEGMENT INFORMATION

The Company's two segments, UC and Telephone, are strategic business units that offer different products and services. The Company evaluates the performance of its two segments based upon factors such as revenue growth, expense containment, market share and operating results.

The UC segment is a premier provider of hosted Unified Communications as a Service (UCaaS) including VoIP, hosted Microsoft communication services, fixed mobile convergence and advanced voice applications for a broad customer base including, medium and large-sized businesses and enterprise business customers.

The Telephone segment operates as an ILEC in southern Orange County, New York and northern New Jersey. The Telephone segment consists of providing local and toll telephone service, high-speed broadband and fiber Internet access services and satellite video services to residential and business customers. The ILEC service areas are primarily rural and have an estimated population of 50,000. The Company also operates as a CLEC in in Middletown, New York, Scotchtown, New York and Vernon, New Jersey.

The segment results presented below are not necessarily indicative of the results of operations these segments would have achieved had they operated as stand-alone entities during the periods presented. All intersegment transactions are shown net of eliminations.

Segment statement of operations information for the three months ended June 30, 2014 and 2013 is set forth below:

						For the three months ended June 30,
	2014							2013
	UC			Telephone		Consolidated			UC		Telephone		Consolidated
Operating Revenues	$	4,234	$	3,370	$	7,604		$	3,920	$	3,527	$	7,447
Operating Expenses
Cost of services and products		1,889		978		2,867			2,015		1,200		3,215
Selling, general and administrative expense		3,351		1,911		5,262			3,811		2,415		6,226
Depreciation and amortization		539		380		919			564		397		961
Total Operating Expenses		5,779		3,269		9,048			6,390		4,012		10,402
Operating Income (Loss)		(1,545	)	101		(1,444	)		(2,470	)	(485	)	(2,955	)
Interest income, (expense), net						(54	)						(178	)
Income from equity method investment						50,333							3,250
Other (expense) income, net						6							29
Income before income taxes					$	48,841					$		146

Segment statement of operations information for the six months ended June 30, 2014 and 2013 is set forth below:

							For the six months ended June 30,
	2014								2013
		UC		Telephone			Consolidated			UC		Telephone		Consolidated
Operating Revenues	$	8,445	$	6,683		$	15,128		$	7,876	$	7,311	$	15,187
Operating Expenses
Cost of services and products		3,915		2,004			5,919			4,585		2,419		7,004
Selling, general and administrative expense		7,068		3,992			11,060			8,500		4,974		13,474
Depreciation and amortization		1,060		762			1,822			1,182		781		1,963
Total Operating Expenses		12,043		6,758			18,801			14,267		8,174		22,441
Operating Loss		(3,598	)	(75	)		(3,673	)		(6,391	)	(863	)	(7,254	)
Interest income, (expense), net							(193	)						(414	)
Income from equity method investment							52,373							6,500
Other (expense) income, net							27							137
Income before income taxes						$	48,534					$		(1,031	)

The Company's assets for each of the two segments have not significantly changed since December 31, 2013, except for the $40 million in cash due to the proceeds from exercising the O-P Put.