Segment Information

6 Months Ended

Jun. 30, 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 June 30, 2015 and 2014 is set forth below:

	For the three months ended June 30,
				2015							2014
		UC		Telephone		Consolidated			UC		Telephone		Consolidated
Operating Revenues	$	4,524	$	3,370	$	7,894		$	4,234	$	3,370	$	7,604
Operating Expenses
Cost of services and products		2,338		1,005		3,343			1,889		978		2,867
Selling, general and administrative expense		3,614		1,980		5,594			3,351		1,911		5,262
Depreciation and amortization		867		383		1,250			539		380		919
Total Operating Expenses		6,819		3,368		10,187			5,779		3,269		9,048
Operating (Loss) Income		(2,295	)	2		(2,293	)		(1,545	)	101		(1,444	)
Interest income (expense), net						3							(54	)
Income from investment						-							50,333
Other income (expense), net						(11	)						6
(Loss) income before income taxes					$	(2,301	)					$	48,841

Segment statement of operations information for the six months ended June 30, 2015 and 2014 is set forth below:

	For the six months ended June 30,
				2015							2014
		UC		Telephone		Consolidated			UC		Telephone			Consolidated
Operating Revenues	$	8,985	$	6,663	$	15,648		$	8,445	$	6,683		$	15,128
Operating Expenses
Cost of services and products		4,501		1,985		6,486			3,915		2,004			5,919
Selling, general and administrative expense		6,737		3,912		10,649			7,012		3,948			10,960
Depreciation and amortization		1,727		765		2,492			1,060		762			1,822
Restructuring costs and other special charges		-		-		-			56		44			100
Total Operating Expenses		12,965		6,662		19,627			12,043		6,758			18,801
Operating (Loss) Income		(3,980	)	1		(3,979	)		(3,598	)	(75	)		(3,673	)
Interest income (expense), net						12								(193	)
Income from investment						-								52,373
Other income, net						1,490								27
(Loss) Income before income taxes					$	(2,477	)						$	48,534

The assets for the UC segment decreased during the six months ended June 30, 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).