Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information

NOTE 11: Segment Information

The Company has four reportable segments, EIM, Telemanagement, VoIP, and Patent Enforcement. These segments are managed separately because the services provided by each segment require different technology and marketing strategies.

Electronic Invoice Management: EIM designs, develops and provides electronic invoice presentment and analysis software that enables internet-based customer self-care for wireline, wireless and convergent providers of telecommunications services. EIM software and services are used primarily by telecommunications services providers to enhance their customer relationships while reducing the providers operational expenses related to paper-based invoice delivery and customer support relating to billing inquiries. The Company provided these services primarily through facilities located in Indianapolis, Indiana and Blackburn, United Kingdom.

Telemanagement: Through its operations in the United Kingdom and Indianapolis and the utilization of the Proteus^® products, the Company offers telemanagement software and services for end users to manage their usage of multi-media communications services and equipment.

Voice Over Internet Protocol: VoIP designs, develops and provides software and services that enable managed and hosted customers of service providers to analyze voice, video, and data usage, record and monitor communications, and perform administration and back office functions such as cost allocation or client bill back. These applications are commonly available in the market as enterprise-grade products. Customers typically purchase these products when upgrading or acquiring a new enterprise communications platform.

Patent Enforcement: Patent Enforcement involves the licensing, protection, enforcement and defense of the Company’s intellectual property and rights.

Reconciling items for operating income (loss) in the table below represent corporate expenses and depreciation all of which are in the United States.

The accounting policies for segment reporting are the same as those described in Note 1 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

Summarized financial information concerning the Company’s reportable segments for the six months and three months ended June 30, 2011 and 2010 is shown in the following tables.

	For Six Months Ended June 30, 2011
	Electronic Invoice							Patent		Corporate
	Management		Telemanagement		VoIP			Enforcement		Allocation			Consolidated
Revenues	$	4,859,003	$	2,550,815	$	707,138		$	—	$	—		$	8,116,956
Gross profit (Revenues less cost of products and patent license cost, excluding depreciation and amortization)		3,946,371		1,505,667		290,916			58,306		—			5,801,260
Depreciation and Amortization		702,902		21,018		218,484			—		4,937			947,341
Income (loss) from operations		620,189		388,948		(980,837	)		58,306		(547,048	)		(460,442	)
Long-lived assets		7,407,322		102,102		674,545			—		3,699			8,187,668

	For Six Months Ended June 30, 2010
	Electronic Invoice							Patent		Corporate
	Management		Telemanagement		VoIP			Enforcement		Allocation			Consolidated
Revenues	$	4,768,990	$	2,390,705	$	317,894		$	40,500	$	—		$	7,518,089
Gross profit/(loss) (Revenues less cost of products and patent license cost, excluding depreciation and amortization)		3,803,598		1,298,364		30,303			29,897		—			5,162,162
Depreciation and Amortization		496,564		8,388		276,423			353		14,382			796,110
Income (loss) from operations		842,025		261,836		(1,218,765	)		29,544		(517,495	)		(602,855	)
Long-lived assets		9,900,571		46,778		949,351			—		13,777			10,910,477

	For Three Months Ended June 30, 2011
	Electronic Invoice							Patent		Corporate
	Management		Telemanagement		VoIP			Enforcement		Allocation			Consolidated
Revenues	$	2,323,179	$	1,216,110	$	461,301		$	—	$	—		$	4,000,590
Gross profit/(loss) (Revenues less cost of products and patent license cost, excluding depreciation and amortization)		1,991,742		766,287		179,545			58,688		—			2,996,262
Depreciation and Amortization		378,954		11,328		110,019			—		2,391			502,692
Income (loss) from operations		289,372		279,429		(545,516	)		58,688		(257,467	)		(175,494	)
Long-lived assets		7,407,322		102,102		674,545			—		3,699			8,187,668

	For Three Months Ended June 30, 2010
	Electronic Invoice							Patent		Corporate
	Management		Telemanagement		VoIP			Enforcement		Allocation			Consolidated
Revenues	$	2,116,070	$	1,264,214	$	197,748			—		—		$	3,578,032
Gross profit/(loss) (Revenues less cost of products and patent license cost, excluding depreciation and amortization)		1,714,972		711,286		8,614			51,074		—			2,485,946
Depreciation and Amortization		259,214		4,126		127,340			—		6,760			397,440
Income (loss) from operations		165,035		171,914		(638,574	)		51,074		(202,794	)		(453,345	)
Long-lived assets		9,900,571		46,778		949,351			—		13,777			10,910,477

The following table presents net revenues by geographic location.

	For Six Months Ended June 30, 2011
				United
	United States			Kingdom		Consolidated
Revenues	$	1,927,264		$	6,189,692	$	8,116,956
Gross profit (Revenues less cost of products and patent license cost, excluding depreciation and amortization)		1,443,090			4,358,170		5,801,260
Depreciation and Amortization		256,492			690,849		947,341
Income / (loss) from operations		(772,708	)		312,266		(460,442	)
Long-lived assets		6,486,568			1,701,100		8,187,668

	For Six Months Ended June 30, 2010
				United
	United States			Kingdom			Consolidated
Revenues	$	2,270,982		$	5,247,107		$	7,518,089
Gross profit (Revenues less cost of products and patent license cost, excluding depreciation and amortization)		1,663,731			3,498,431			5,162,162
Depreciation and Amortization		334,319			461,791			796,110
Income (loss) from operations		(428,182	)		(174,673	)		(602,855	)
Long-lived assets		9,640,052			1,270,425			10,910,477

	For Three Months Ended June 30, 2011
				United
	United States			Kingdom		Consolidated
Revenues	$	1,017,226		$	2,983,364	$	4,000,590
Gross profit (Revenues less cost of products and patent license cost, excluding depreciation and amortization)		730,937			2,265,325		2,996,262
Depreciation and Amortization		128,371			374,321		502,692
Income / (loss) from operations		(459,780	)		284,286		(175,494	)
Long-lived assets		6,486,568			1,701,100		8,187,668

	For Three Months Ended June 30, 2010
				United
	United States			Kingdom			Consolidated
Revenues	$	1,233,441		$	2,344,591		$	3,578,032
Gross profit (Revenues less cost of products and patent license cost, excluding depreciation and amortization)		950,596			1,535,350			2,485,946
Depreciation and Amortization		154,681			242,759			397,440
Income (loss) from operations		(74,273	)		(379,072	)		(453,345	)
Long-lived assets		9,640,052			1,270,425			10,910,477