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15. Segments
6 Months Ended
Jun. 30, 2020
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 before income tax provision are as follows (in thousands):

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2020     2019     2020     2019  
Revenue:                        
Cloud telecommunications   $ 3,918     $ 3,449     $ 7,629     $ 6,763  
Web services     136       165       292       343  
Consolidated revenue     4,054       3,614       7,921       7,106  
                                 
Income from operations:                                
Cloud telecommunications     486       253       615       416  
Web services     45       87       97       165  
Total operating income     531       340       712       581  
Other income/(expense), net:                                
Cloud telecommunications     (21 )     (1 )     (27 )     (4 )
Web services     1       3       (31 )     7  
Total other income/(expense), net     (20 )     2       (58 )     3  
Income before income tax provision:                                
Cloud telecommunications     465       252       588       412  
Web services     46       90       66       172  
Income before income tax provision   $ 511     $ 342     $ 654     $ 584  

 

Depreciation and amortization was $36,000 and $21,000 for the Cloud Telecommunications segment for the three months ended June 30, 2020 and 2019, respectively. Depreciation and amortization was $135,000 and $42,000 for the Cloud Telecommunications segment for the six months ended June 30, 2020 and 2019, respectively. Depreciation and amortization was $1,000 and $1,000 for the Web Services segment for the three months ended June 30, 2020 and 2019, respectively. Depreciation and amortization was $5,000 and $2,000 for the Web Services segment for the six months ended June 30, 2020 and 2019, respectively.

 

Interest income was $1,000 and $2,000 for the Web Services segment for the three months ended June 30, 2020 and 2019, respectively. Interest income was $2,000 and $3,000 for the Web Services segment for the six months ended June 30, 2020 and 2019, respectively.

 

Interest expense was $22,000 and $3,000 for the Cloud Telecommunications segment for the three months ended June 30, 2020 and 2019, respectively. Interest expense was $30,000 and $8,000 for the Cloud Telecommunications segment for the six months ended June 30, 2020 and 2019, respectively. Interest expense was $0 for the Web Services segment for the three months ended June 30, 2020 and 2019. Interest expense was $1,000 and $0 for the Web Services segment for the six months ended June 30, 2020 and 2019, respectively.