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Segments Reporting
 6 Months Ended
Jun. 30, 2021
Segments Reporting  
15. Segments

15. Segment Reporting

 

Our chief operating decision maker (who is our Chief Executive Officer) reviews our financial information presented on an operating segment basis for purposes of allocating resources and evaluating our financial performance. Following the merger with NetSapiens, Inc., the Company reorganized into two operating segments, a software solutions operating segment and a cloud telecommunications services operating segment. The cloud telecommunications services segment generates revenue from selling cloud telecommunication services, products, and other internet services. The software solutions segment generates revenue from selling perpetual software licenses and software subscriptions, subscription maintenance and support, and professional services. The Company has two reportable operating segments, which consist of cloud telecommunications services and software solutions. Segment revenue, income/(loss) from operations, other income/(expense) and income/(loss) before income tax provision are as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Cloud telecommunications services

 

$4,767

 

 

$4,054

 

 

$9,274

 

 

$7,921

 

Software solutions

 

 

1,012

 

 

 

-

 

 

 

1,012

 

 

 

-

 

Consolidated revenue

 

 

5,779

 

 

 

4,054

 

 

 

10,286

 

 

 

7,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud telecommunications services

 

 

(929)

 

 

531

 

 

 

(1,751)

 

 

712

 

Software solutions

 

 

(315)

 

 

-

 

 

 

(315)

 

 

-

 

Total operating income/(loss)

 

 

(1,244)

 

 

531

 

 

 

(2,066)

 

 

712

 

Other income/(expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud telecommunications services

 

 

(19)

 

 

(20)

 

 

(36)

 

 

(58)

Software solutions

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(-)

Total other income/(expense), net

 

 

(19)

 

 

(20)

 

 

(36)

 

 

(58)
Income/(loss) before income tax provision:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud telecommunications services

 

 

(948)

 

 

511

 

 

 

(1,787)

 

 

654

 

Software solutions

 

 

(315)

 

 

-

 

 

 

(315)

 

 

-

 

Income/(loss) before income tax provision

 

$(1,263)

 

$511

 

 

$(2,102)

 

$654

 

 

Depreciation and amortization was $49,000 and $36,000 for the cloud telecommunications services segment for the three months ended June 30, 2021 and 2020, respectively. Depreciation and amortization was $93,000 and $135,000 for the cloud telecommunications segment for the six months ended June 30, 2021 and 2020, respectively. Depreciation and amortization was $2,000 and $0 for the software solutions segment for the three months ended June 30, 2021 and 2020, respectively. Depreciation and amortization was $2,000 and $0 for the software solutions segment for the six months ended June 30, 2021 and 2020, respectively.

 

Interest income was $1,000 and $1,000 for the cloud telecommunications services segment for the three months ended June 30, 2021 and 2020, respectively. Interest income was $1,000 and $2,000 for the cloud telecommunications segment for the six months ended June 30 2021 and 2020, respectively. Interest income was $0 for the software solutions segment for the three months ended June 30, 2021 and 2020 and for the six months ended June 30, 2021 and 2020.

 

Interest expense was $21,000 and $22,000 for the cloud telecommunications services segment for the three months ended June 30, 2021 and 2020, respectively. Interest expense was $40,000 and $31,000 for the cloud telecommunications services segment for the six months ended June 30, 2021 and 2020, respectively. Interest expense was $0 for the software solutions segment for the three months ended June 30, 2021 and 2020 and for the six months ended June 30, 2021 and 2020.