8. Segment Information

6 Months Ended

Jun. 30, 2014

Segment Information

8. Segment Information

Management has chosen to organize the Company around differences based on its products and services.  Hosted Telecom Services segment generates revenue from selling hosted telecom services and broadband internet services. Web Services segment generates revenue from website hosting, managing e-commerce or lead generation offerings, websites, search engine optimization/management and online promotional needs for small, medium, and large sized businesses.  The Company has two operating segments, which consist of Hosted Telecom Services and Web Services. Effective April 1, 2014, the Company changed its reporting segments 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 June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Revenue:
Hosted Telecommunications Services	$	963		$	491		$	1,918		$	876
Web Services		845			2,246			1,962			4,883
Consolidated revenue		1,808			2,737			3,880			5,759
Loss from Operations:
Hosted Telecommunications Services		(1,376	)		(1,251	)		(2,887	)		(2,485	)
Web Services		(187	)		35			(351	)		422
Total operating loss		(1,563	)		(1,216	)		(3,238	)		(2,063	)
Other Income, net:
Hosted Telecommunications Services		21			-			41			3
Web Services		61			120			118			329
Total other income		82			120			159			332
Loss before income tax provision
Hosted Telecommunications Services		(1,355	)		(1,251	)		(2,846	)		(2,482	)
Web Services		(126	)		155			(233	)		751
Loss before income tax provision	$	(1,481	)	$	(1,096	)	$	(3,079	)	$	(1,731	)