XML 66 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment reporting and concentrations
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
10. Segment reporting and concentrations

 

For the year ended December 31, 2012, the Company’s operations are classified into two reportable segments: Content Services (CS) and Innodata Advanced Data Solutions (IADS).

 

CS segment provides solutions to digital retailers, information services companies, publishers and enterprises that have one or more of the following broad business requirements: development of digital content (including eBooks); development of new digital information products; and operational support of existing digital information products and systems.

 

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 services to financial services institutions.

 

A significant portion of the Company’s revenues is generated from its production facilities in the Philippines, India, Sri Lanka and Israel.

 

Revenues from external clients and segment operating profit, and other reportable segment information are as follows (in thousands):

 

    For the Years Ended December 31,  
    2012     2011  
             
Revenues:                
Content Services   $ 85,386     $ 73,942  
IADS     1,205       -  
Total consolidated   $ 86,591     $ 73,942  
                 
Income (loss) before provision for income taxes:                
Content Services   $ 14,775     $ 8,038  
IADS (1)     (7,936 )     (2,767 )
Total consolidated   $ 6,839     $ 5,271  
             
    December 31, 2012     December 31, 2011  
Total assets:                
Content Services   $ 61,858     $ 57,280  
IADS     4,323       2,117  
Total consolidated   $ 66,181     $ 59,397  

 

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

 

Income (loss) before provision for income taxes for Content Services and IADS was $13.1 million and $(6.3) million, respectively, for the year ended December 31, 2012, after eliminating inter-segment profits. Income (loss) before provision for income taxes for Content Services and IADS was $7.5 million and $(2.2) million, respectively, for the year ended December 31, 2011, after eliminating inter-segment profits.

 

Long-lived assets as of December 31, 2012 and 2011 by geographic region are comprised of:

 

    2012     2011  
    (in thousands)  
United States   $ 3,978     $ 2,771  
                 
Foreign countries:                
Philippines     1,424       1,878  
India     4,926       2,494  
Sri Lanka     931       876  
Israel     72       86  
Total foreign     7,353       5,334  
    $ 11,331     $ 8,105  

 

Our top two clients generated approximately 41%, 30% and 17% of the Company’s total revenues in the fiscal years ended December 31, 2012, 2011 and 2010, respectively. Another client accounted for less than 10% of our total revenues for the year ended December 31, 2012, but for 14% and 10% of our total revenues for the year ended December 31, 2011 and 2010, respectively. One other client accounted for less than 10% of our total revenues for the years ended December 31, 2012 and 2011, but for 11% of our total revenues for the year ended December 31, 2010. No other client accounted for 10% or more of total revenues during these periods. Further, in the years ended December 31, 2012, 2011 and 2010, revenues from non-US clients accounted for 24%, 30% and 33%, respectively, of the Company's revenues.

 

Revenues for each of the three years in the period ended December 31, 2012 by geographic region (determined based upon client’s domicile), are as follows:

 

    2012     2011     2010  
    (in thousands)  
                   
United States   $ 65,533     $ 51,626     $ 41,015  
United Kingdom     8,529       9,721       8,198  
The Netherlands     7,658       7,850       8,230  
Other - principally Europe     4,871       4,745       4,070  
    $ 86,591     $ 73,942     $ 61,513  

 

As of December 31, 2012, approximately 30% of the Company's accounts receivable was from foreign (principally European) clients and 55% of accounts receivable was due from four 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. No other client accounts for 10% or more of the receivables as of December 31, 2012 and 2011.