Segment Information

12 Months Ended

Dec. 31, 2014

Segment Information [Abstract]

Segment Information

NOTE 15: 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 income statement information for the years ended December 31, 2014 and 2013 is set forth below:

	For the Year Ended December 31, 2014
`		UC		Telephone		Consolidated
Operating Revenues	$	16,989	$	13,116	$	30,105
Operating Expenses
Cost of services and products		7,784		4,007		11,791
Selling, general and administrative expense		13,199		7,567		20,766
Depreciation and amortization		1,934		1,530		3,464
Loss on disposal, restructuring costs and other special charges		392		308		700
Total Operating Expenses		23,309		13,412		36,721
Operating Loss		(6,320	)	(296	)	(6,616	)
Interest income (expense), net						(162	)
Income from investment						52,373
Other income (expense), net						26
Income (loss) before income taxes				$		45,621

	For the Year Ended December 31, 2013
`		UC		Telephone		Consolidated
Operating Revenues	$	15,834	$	14,268	$	30,102
Operating Expenses
Cost of services and products		8,798		4,667		13,465
Selling, general and administrative expense		15,602		8,387		23,989
Depreciation and amortization		2,287		1,528		3,815
Loss on disposal, restructuring costs and other special charges		447		-		447
Total Operating Expenses		27,134		14,582		41,716
Operating Loss		(11,300	)	(314	)	(11,614	)
Interest income (expense), net						(756	)
Income from investment						13,000
Other income (expense), net						166
Income (loss) before income taxes				$		796

Segment selected balance sheet information as of December 31, 2014 and 2013 is set forth below:

		As of December 31,
($ in thousands)		2014		2013
Assets
Unified Communications	$	20,789	$	21,884
Telephone		36,329		15,379
Total assets	$	57,118	$	37,263

Segment capital expenditures, including purchases of seat licenses and other acquired intangibles, for the years ended December 31, 2014 and 2013 is set forth below:

		For the Years Ended December 31,
($ in thousands)		2014		2013
Unified Communications	$	809	$	921
Telephone		214		451
Total capital expenditures	$	1,023	$	1,372