Segments

3 Months Ended

12 Months Ended

Oct. 31, 2013

Jul. 31, 2013

Segment Reporting Information [Line Items]

Segments

10. Segments

The Company’s reportable segments are Telephony Products and Puerto Rico, each of which offers different products and services or services in different geographic areas. The Telephony Products segment provides telephone products, service and support to businesses and organizations.  The Puerto Rico segment provides the sales and service of integrated communications systems, data equipment, security products and telephony billing services to Puerto Rico and the Virgin Islands.  Performance of each segment is assessed independently. During fiscal 2013, the Company disposed of its Communications Systems and Services segment and has reclassified its condensed consolidated statements of operations for the three months ended October 31, 2013 and 2012 to reflect operations of this segment as discontinued. Income from discontinued operations for the three months ended October 31, 2012 totaled $82,000, which excludes approximately $229,000 of ongoing operating costs and expenses which were allocated to the Communications Systems and Services three months ended October 31, 2012 segment information disclosed below. For the three months ended October 31, 2013, such ongoing operating costs and expenses are included in the Telephony Products operating segment.

Segment reporting for activity as of and for the three months ended October 31, 2013 follows (in thousands):   

	Telephony Products		Puerto Rico		Total
Revenue	$	2,974	$	2,307	$	5,281
Net income (loss) from operations		(16)		31		15
Total assets		8,783		3,820		12,603
Capital expenditures		49		11		60
Allowance for doubtful accounts		123		163		286
Depreciation and amortization		17		24		41

Segment reporting for activity as of and for the three months ended October 31, 2012 follows (in thousands):

	Communications
	Systems and Services		Telephony Products		Puerto Rico		Total
Revenue	$	348	$	2,981	$	2,405	$	5,734
Net (loss) income from operations		(147)		150		97		100
Total assets		1,960		7,439		3,728		13,127
Capital expenditures		-		107		41		148
Allowance for doubtful accounts		85		15		180		280
Depreciation and amortization		1		10		15		26

Substantially all of the Company’s revenues are earned in the United States and the Commonwealth of Puerto Rico.    Substantially all of the Company’s assets are located in the United States and the Commonwealth of Puerto Rico.

15.       Segments

The Company’s reportable segments in fiscal year 2013 are Telephony Products and Puerto Rico, each of which offers different products and services in different geographic areas. The Telephony Products segment provides telephone products, service and support to businesses and organizations. The Puerto Rico segment provides the sale and service of integrated communications systems, data equipment, security products and telephony billing services to Puerto Rico and the Virgin Islands. Performance of each segment is assessed independently. During fiscal 2013, the Company disposed of its Communications Systems and Services segment and has reclassified its consolidated statements of income for fiscal year 2013 and 2012 to reflect operations of this segment as discontinued. Income from discontinued operations for fiscal 2012 totaled $455,000, which excludes approximately $920,000 of ongoing operating costs and expenses which were allocated to the Communications Systems and Services fiscal 2012 segment information disclosed below. For fiscal 2013, such ongoing operating costs and expenses are included in the Telephony Products operating segment.

Segment reporting for activity for the fiscal year ended and balances as of July 31, 2013 follows (in thousands):

	Telephony Products		Puerto Rico		Total
Revenue	$	11,129	$	9,457	$	20,586
Income (loss) from operations		(440)		320		(120)
Total assets		8,768		4,347		13,115
Capital expenditures		129		159		288
Allowance for doubtful accounts		123		162		285
Depreciation and amortization		49		85		134
Income tax expense		20		-		20

Segment reporting for activity for the fiscal year ended and balances as of July 31, 2012 follows (in thousands):

	Communications Systems and Services		Telephony Products		Puerto Rico		Total
Revenue	$	1,826	$	12,807	$	7,864	$	22,497
Income (loss) from operations		(465)		1,057		100		692
Total assets		2,178		7,616		3,812		13,606
Capital expenditures		-		100		132		232
Allowance for doubtful accounts		342		16		197		555
Depreciation and amortization		6		37		62		105
Income tax expense		-		20		-		20

Substantially all of the Company’s revenues are earned in the United States and the Commonwealth of Puerto Rico.

Cortelco Systems Holding Corp [Member]

Segment Reporting Information [Line Items]

Segments

9. Segments

The Company’s reportable segments are Telephony Products and Puerto Rico, each of which offers different products and services or services a different geographic area. Telephony Products segment provides telephone products, service and support to businesses and organizations. The Puerto Rico segment provides the sales and service of integrated communications systems, data equipment, security products and telephony billing services to Puerto Rico and the Virgin Islands. Performance of each segment is assessed independently.

Segment reporting for activity as of and for the three months ended October 31, 2013 follows (in thousands):

	Telephony Products		Puerto Rico		Total
Revenue	$	2,654	$	2,308	$	4,962
Net income from operations		278		32		310
Total assets		8,372		3,820		12,192
Capital expenditures		49		11		60
Allowance for doubtful accounts		18		163		181
Depreciation and amortization		16		24		40

Segment reporting for activity as of and for the three months ended October 31, 2012 follows (in thousands):

	Telephony Products		Puerto Rico		Total
Revenue	$	2,981	$	2,405	$	5,386
Net income from operations		228		97		325
Total assets		8,757		3,728		12,485
Capital expenditures		107		41		148
Allowance for doubtful accounts		15		180		195
Depreciation and amortization		10		15		25

Substantially all of the Company’s revenues are earned in the United States and the Commonwealth of Puerto Rico. Substantially all of the Company’s assets are located in the United States and the Commonwealth of Puerto Rico.

14. Segments

The Company’s reportable segments are Telephony Products and Puerto Rico, each of which offers different products and services in different geographic areas. The Telephony Products segment provides telephone products, service and support to businesses and organizations. The Puerto Rico segment provides the sale and service of integrated communications systems, data equipment, security products and telephony billing services to Puerto Rico and the Virgin Islands. Performance of each segment is assessed independently. Segment reporting for activity for the fiscal year ended and balances as of July 31, 2013 follows (in thousands):

	Telephony Products		Puerto Rico		Total
Revenue	$	11,129	$	9,457	$	20,586
Income from operations		763		320		1,083
Total assets		8,525		4,347		12,872
Capital expenditures		129		159		288
Allowance for doubtful accounts		20		162		182
Depreciation and amortization		47		85		132
Income tax expense		205		-		205

Segment reporting for activity for the fiscal year ended and balances as of July 31, 2012 follows (in thousands):

	Telephony Products		Puerto Rico		Total
Revenue	$	12,806	$	7,864	$	20,670
Income from operations		1,057		100		1,157
Total assets		8,933		3,812		12,745
Capital expenditures		101		131		232
Allowance for doubtful accounts		16		197		213
Depreciation and amortization		33		64		97
Income tax expense		319		-		319

Substantially all of the Company’s revenues are earned in the United States and the Commonwealth of Puerto Rico.