Segments

12 Months Ended

Jul. 31, 2012

Segments [Abstract]

Segments

15. Segments

The Company’s reportable segments are Communications Systems and Services, Telephony Products and Puerto Rico, each of which offers different products and services or services a different geographic area. The Communications Systems and Services segment develops and markets products that help businesses communicate more effectively and efficiently with their customers. 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. Prior to the acquisition of Cortelco Systems Puerto Rico on June 9, 2010, the Company reported all of its operations as two segments. 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
Loss from discontinued operations		—			—		—		—
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
Asset impairment		—			—		—		—
Income tax expense		—			20		—		20

Segment reporting for activity for the fiscal year ended and balances as of July 31, 2011 follows (in thousands):

	Communications Systems and Services			Telephony Products		Puerto Rico		Total
Revenue	$	2,384		$	12,008	$	9,024	$	23,416
Income (loss) from operations		(2,388	)		1,299		197		(892	)
Loss from discontinued operations		(125	)		—		—		(125	)
Total assets		2,777			7,476		3,398		13,651
Capital expenditures		4			6		78		88
Allowance for doubtful accounts		343			15		269		627
Depreciation and amortization		161			55		62		278
Asset impairment		916			—		—		916
Income tax expense		—			54		—		54

Substantially all of the Company’s revenues are earned in the United States and the Commonwealth of Puerto Rico. Revenue from discontinued operations earned in the People’s Republic of China (“PRC”) for the fiscal year ended July 31, 2011 was approximately $34,000.