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Segment reporting and concentrations
9 Months Ended
Sep. 30, 2011
Segment reporting and concentrations
7.
Segment reporting and concentrations
 
For the three months and nine months ended September 30, 2011, the Company’s operations are classified into two reportable segments: Content Services and IADS.
 
The Content Services segment provides business process, technology and consulting services to assist customers in creating, managing, using and distributing digital content.
 
In the second quarter of 2011, the Company launched its IADS segment to perform advanced data analysis.  IADS operates through two divisions.  The Synodex division of IADS offers a range of data analysis services in the healthcare, medical and insurance areas.  The docGenix division of IADS provides software products and services that facilitate the generation and analysis of standardized and non-standardized documents for swaps, derivatives, repos, securities lending, prime brokerage, investment management and clearing.

A significant portion of the Company’s revenues are generated from its production facilities in the Philippines, India, Sri Lanka and Israel.
 
Revenues from external customers and segment operating profit, and other reportable segment information are as follows (in thousands):
 
   
Three months ended
    
Nine months ended
  
   
September 30, 2011
    
September 30, 2011
  
             
Revenues:
            
Content Services
   $ 19,245     $ 50,203  
IADS
     -       -  
Total consolidated
   $ 19,245     $ 50,203  
                 
Income before provision for income taxes:
                
Content Services
   $ 2,761     $ 4,091  
IADS
     (811 )     (1,071 )
Total consolidated
   $ 1,950     $ 3,020  

   
September 30, 2011
  
Total assets:
      
Content Services
   $ 53,834  
IADS
     1,026  
Total consolidated
   $ 54,860  

The following table summarizes revenues by geographic region (determined based upon customer’s domicile) (in thousands):

   
Three months ended
    
Nine months ended
  
   
September 30,
    
September 30,
  
   
2011
    
2010
    
2011
    
2010
  
                         
Unites States
   $ 13,538     $ 11,120     $ 33,923     $ 31,432  
United Kingdom
     2,496       1,831       6,727       6,315  
The Netherlands
     1,844       2,081       6,124       5,764  
Others - principally Europe
     1,367       731       3,429       3,112  
    $ 19,245     $ 15,763     $ 50,203     $ 46,623  

Long-lived assets as of September 30, 2011 and December 31, 2010, respectively, by geographic regions are comprised of (in thousands):
   
2011
    
2010
  
       
United States
   $ 1,937     $ 1,066  
Foreign countries:
                
Philippines
     2,142       2,300  
India
     858       895  
Sri Lanka
     745       495  
Israel
     101       203  
Total foreign
     3,846       3,893  
    $ 5,783     $ 4,959  
 
Three customers generated approximately 44% and 27% of our revenues for the three months ended September 30, 2011 and 2010, respectively. No other customer accounted for 10% or more of revenues in either period. Further, for the three months ended September 30, 2011 and 2010, revenues from non-US customers accounted for 30% and 29%, respectively, of the Company's revenues.

Three customers generated approximately 39% and 26% of our revenues for the nine months ended September 30, 2011 and 2010, respectively. Another customer accounted for less than 10% of revenues for the nine months ended September 30, 2011, and for 11% of our revenues for the nine months ended September 30, 2010. No other customer accounted for 10% or more of revenues in either period. Further, for the nine months ended September 30, 2011 and 2010, revenues from non-US customers accounted for 32% and 34%, respectively, of the Company's revenues.

A significant amount of the Company's revenues is derived from customers in the publishing industry. Accordingly, the Company's accounts receivable generally include significant amounts due from such customers. In addition, as of September 30, 2011, approximately 32% of the Company's accounts receivable were from foreign (principally European) customers and 33% of accounts receivable were due from two customers. As of December 31, 2010, approximately 34% of the Company's accounts receivable were from foreign (principally European) customers and 37% of accounts receivable were due from three customers.