13. Segments

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segments

Management has chosen to organize the Company around differences based on its products and services. Cloud Telecommunications segment generates revenue from selling cloud telecommunication products and services and broadband Internet services. Web Services segment generates revenue from website hosting and other professional services. The Company has two operating segments, which consist of Cloud Telecommunications and Web Services. Segment revenue and income/(loss) before income tax provision are as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Revenue:
Cloud telecommunications	$	3,449		$	2,769		$	6,763		$	5,352
Web services		165			208			343			433
Consolidated revenue		3,614			2,977			7,106			5,785
Income/(loss) from operations:
Cloud telecommunications		253			(56	)		416			(244	)
Web services		87			106			165			231
Total operating income/(loss)		340			50			581			(13	)
Other income/(expense), net:
Cloud telecommunications		(1	)		3			(4	)		7
Web services		3			(3	)		7			(3	)
Total other income, net		2			-			3			4
Income/(loss) before income tax provision:
Cloud telecommunications		252			(53	)		412			(237	)
Web services		90			103			172			228
Income/(loss) before income tax provision	$	342		$	50		$	584		$	(9	)

Depreciation and amortization was $21,000 and $19,000 for the Cloud Telecommunications segment for the three months ended June 30, 2019 and 2018, respectively. Depreciation and amortization was $42,000 and $37,000 for the Cloud Telecommunications segment for the six months ended June 30, 2019 and 2018, respectively. Depreciation and amortization was $1,000 and $2,000 for the Web Services segment for the three months ended June 30, 2019 and 2018, respectively. Depreciation and amortization was $2,000 and $3,000 for the Web Services segment for the six months ended June 30, 2019 and 2018, respectively.

Interest income was $2,000 and $2,000 for the Web Services segment for the three months ended June 30, 2019 and 2018, respectively. Interest income was $3,000 and $4,000 for the Web Services segment for the six months ended June 30, 2019 and 2018, respectively.

Interest expense was $3,000 and $2,000 for the Cloud Telecommunications segment for the three months ended June 30, 2019 and 2018, respectively. Interest expense was $8,000 and $3,000 for the Cloud Telecommunications segment for the six months ended June 30, 2019 and 2018, respectively.