Segments

6 Months Ended

12 Months Ended

Jan. 31, 2014

Jul. 31, 2013

Segment Reporting Information [Line Items]

Segments

12. 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 six months ended January 31, 2014 and 2013 to reflect operations of this segment as discontinued. Income from discontinued operations for the six months ended January 31, 2013 totaled $127,000, which excludes approximately $431,000 of ongoing operating costs and expenses, which were allocated to the Communications Systems and Services six months ended January 31, 2013 segment information disclosed below. For the six months ended January 31, 2014, such ongoing operating costs and expenses are included in the Telephony Products operating segment.

Segment reporting for activity as of and for the three and six months ended January 31, 2014 follows (in thousands):   

	Telephony Products				Puerto Rico				Total
	3 Months		6 Months		3 Months		6 Months		3 Months		6 Months
Revenue	$	2,120	$	5,094	$	2,513	$	4,820	$	4,633	$	9,914
Net loss from operations		(378)		(394)		(199)		(168)		(577)		(562)
Total assets		-		10,379		-		4,277		-		14,656
Capital expenditures		2		51		11		22		13		73
Allowance for doubtful accounts		-		16		-		162		-		178
Depreciation and amortization		17		34		23		47		40		81

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

	Communications
	Systems and Services				Telephony Products				Puerto Rico				Total
	3 Months		6 Months		3 Months		6 Months		3 Months		6 Months		3 Months		6 Months
Revenue	$	312	$	660	$	2,501	$	5,482	$	2,428	$	4,833	$	5,241	$	10,975
Net (loss) income from operations		(157)		(304)		(10)		140		22		119		(145)		(45)
Total assets		-		1,812		-		7,469		-		3,810		-		13,091
Capital expenditures		-		-		12		119		-		41		12		160
Allowance for doubtful accounts		-		105		-		23		-		181		-		309
Depreciation and amortization		1		3		11		21		5		19		17		43

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 six months ended January 31, 2014 follows (in thousands):   

	Telephony Products		Puerto Rico		Total
Revenue	$	4,580	$	4,820	$	9,400
Net income from operations		324		(168)		156
Total Assets		7,593		4,277		11,870
Capital Expenditures		51		22		73
Allowance for doubtful accounts		16		162		178
Depreciation and amortization		32		47		79

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

	Telephony Products		Puerto Rico		Total
Revenue	$	5,450	$	4,833	$	10,283
Net income from operations		305		119		424
Total Assets		8,887		3,810		12,697
Capital expenditures		119		41		160
Allowance for doubtful accounts		23		181		204
Depreciation and amortization		22		19		41

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	$	10,867	$	9,457	$	20,324
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	$	12,807	$	7,864	$	20,324
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.