9. Segment Information

3 Months Ended

Mar. 31, 2013

Segment Information

9. Segment Information

 (9)          Segment Information

Management has chosen to organize the Company around differences based on its products and services.  Crexendo Web Services segment generates revenue from managing e-commerce or lead generation offerings, websites, search engine optimization/management and online promotional needs for small, medium, and large businesses.  Crexendo Network Services segment generates revenue from selling hosted telecommunication and broadband data services. We believe StoresOnline segment will continue to generate revenue by offering businesses a continuum of services and technology providing tools and training to establish a successful website on the Internet for entrepreneurs and small office/home office (SOHO) customers.

The Company has three operating segments, which consist of StoresOnline, Crexendo Web Services, and Crexendo Network Services. Effective October 1, 2012, the Company changed its reporting segments to reflect the allocation of previously unallocated corporate expenses to each of the three operating segments. The Company revised its segment reporting to reflect changes in how the Chief Operating Decision Maker (CODM) internally measures performance and allocates resources. Segment operating results for the prior year have been revised to conform to current year segment operating results presentation.

Segment revenue and income (loss) before income tax provision was as follows (in thousands):

	Three Months Ended March 31,
	2013			2012
Revenue:
StoresOnline	$	2,104		$	4,410
Crexendo Web Services		533			770
Crexendo Network Services		385			75
Consolidated revenue		3,022			5,255
Loss from Operations:
StoresOnline		1,016			1,662
Crexendo Web Services		(629	)		(1,440	)
Crexendo Network Services		(1,234	)		(948	)
Total operating loss		(847	)		(726	)
Other Income, net:
StoresOnline		206			762
Crexendo Web Services		3			4
Crexendo Network Services		3			4
Total other income		212			770
Income (loss) before income tax provision
StoresOnline		1,222			2,424
Crexendo Web Services		(626	)		(1,436	)
Crexendo Network Services		(1,231	)		(944	)
Income (loss) before income tax provision	$	(635	)	$	44