Segment Information

3 Months Ended

Mar. 31, 2015

Segment Information [Abstract]

Segment Information

NOTE 11: 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. We also operate as a CLEC 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 March 31, 2015 and 2014 is set forth below:

							For the three months ended March 31,
				2015								2014
	UC			Telephone			Consolidated			UC		Telephone		Consolidated
Operating Revenues	$	4,461	$	3,293		$	7,754		$	4,211	$	3,313	$	7,524
Operating Expenses
Cost of services and products		2,163		980			3,143			2,026		1,026		3,052
Selling, general and administrative expense		3,123		1,932			5,055			3,661		2,037		5,698
Depreciation and amortization		860		382			1,242			521		382		903
Restructuring costs and other special charges		-		-			-			56		44		100
Total Operating Expenses		6,146		3,294			9,440			6,264		3,489		9,753
Operating Loss		(1,685	)	(1	)		(1,686	)		(2,053	)	(176	)	(2,229	)
Interest income, (expense), net							9							(139	)
Income from investment							-							2,040
Other income, net							1,501							21
Loss before income taxes						$	(176	)				$		(307	)

The assets for the UC segment decreased during the three months ended March 31, 2015 primarily as a result of accelerated depreciation/amortization of office equipment and leasehold improvements associated with the exit of the office lease (see Note 13).