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Segment reporting and concentrations
 3 Months Ended
Mar. 31, 2012
Segment reporting and concentrations
6. Segment reporting and concentrations

 

For the three months ended March 31, 2012, 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 subsidiaries: Synodex and docGenix. Synodex offers a range of data analysis services in the healthcare, medical and insurance areas.  docGenix 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 March 31, 2012     Three months ended March 31, 2011  
             
Revenues:                
Content Services   $ 24,538     $ 14,701  
IADS     598       -  
Total consolidated   $ 25,136     $ 14,701  
                 
Income (loss) before provision for income taxes:                
Content Services   $ 6,492     $ 84  
IADS (1)     (2,770 )     -  
Total consolidated   $ 3,722     $ 84  

 

    March 31, 2012     December 31, 2011  
             
Total assets:                
Content Services   $ 59,432     $ 57,280  
IADS     3,688       2,117  
Total consolidated   $ 63,120     $ 59,397  

 

(1) Before elimination of any inter-segment profits.

 

Income (loss) before provision for income taxes for CS and IADS was $5.2 million and $(1.5) million, respectively, for the three months ended March 31, 2012, after eliminating inter-segment profits.

 

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

 

    Three months ended  
    March 31,  
    2012     2011  
             
United States   $ 19,961     $ 9,284  
United Kingdom     2,146       2,122  
The Netherlands     1,696       2,192  
Other - principally Europe     1,333       1,103  
    $ 25,136     $ 14,701  

 

Long-lived assets as of March 31, 2012 and December 31, 2011, respectively, by geographic regions are comprised of (in thousands):

 

    2012     2011  
       
United States   $ 3,343     $ 2,771  
                 
Foreign countries:                
Philippines     1,614       1,878  
India     3,503       2,494  
Sri Lanka     936       876  
Israel     72       86  
Total foreign     6,125       5,334  
    $ 9,468     $ 8,105  

 

 

The top three clients generated approximately 56% and 34% of our revenues for the three months ended March 31, 2012 and 2011, respectively. No other client accounted for 10% or more of revenues in either period. Further, for the three months ended March 31, 2012 and 2011, revenues from non-US clients accounted for 20% and 37%, respectively, of the Company's revenues.

 

A significant amount of the Company's revenues is derived from clients in the information media and publishing industry. Accordingly, the Company's accounts receivable generally include significant amounts due from such customers. In addition, as of March 31, 2012, approximately 18% of the Company's accounts receivable was from foreign (principally European) clients and 57% of accounts receivable was due from two clients. As of December 31, 2011, approximately 20% of the Company's accounts receivable was from foreign (principally European) clients and 62% of accounts receivable was due from two clients.