Segment Information

9 Months Ended

Sep. 30, 2015

Segment Information [Abstract]

Segment Information

NOTE 11: SEGMENT INFORMATION

The Companys 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 September 30, 2015 and 2014 is set forth below:

				For the three months ended September 30,
				2015							2014
	UC			Telephone		Consolidated			UC		Telephone		Consolidated
Operating Revenues	$	4,718	$	3,252	$	7,970		$	4,308	$	3,263	$	7,571
Operating Expenses
Cost of services and products		2,268		933		3,201			1,923		1,001		2,924
Selling, general and administrative expense		3,624		2,391		6,015			3,048		1,678		4,726
Loss on disposal, restructuring costs and other special
charges		-		-		-			336		264		600
Depreciation and amortization		529		362		891			546		385		931
Total Operating Expenses		6,421		3,686		10,107			5,853		3,328		9,181
Operating Loss		(1,703	)	(434	)	(2,137	)		(1,545	)	(65	)	(1,610	)
Interest income (expense), net						(2	)						20
Other income (expense), net						25							(4	)
Loss before income taxes				$		(2,114	)				$		(1,594	)

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

				For the nine months ended September 30,
				2015							2014
	UC			Telephone		Consolidated			UC		Telephone		Consolidated
Operating Revenues	$	13,703	$	9,915	$	23,618		$	12,753	$	9,946	$	22,699
Operating Expenses
Cost of services and products		6,769		2,918		9,687			5,838		3,005		8,843
Selling, general and administrative expense		10,361		6,303		16,664			10,059		5,627		15,686
Loss on disposal, restructuring costs and other special
charges		-		-		-			392		308		700
Depreciation and amortization		2,256		1,127		3,383			1,606		1,147		2,753
Total Operating Expenses		19,386		10,348		29,734			17,895		10,087		27,982
Operating Loss		(5,683	)	(433	)	(6,116	)		(5,142	)	(141	)	(5,283	)
Interest income (expense), net						10							(173	)
Income from investment						-							52,373
Other income, net						1,515							23
(Loss) Income before income taxes				$		(4,591	)				$		46,940

The assets for the UC segment decreased during the nine months ended September 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).