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Segment Reporting and Concentrations
 3 Months Ended
Mar. 31, 2013
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
6. Segment Reporting and Concentrations

 

The Company’s operations are classified into two reportable segments: Content Services (CS) and Innodata Advanced Data Solutions (IADS).

 

The 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 are 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):

  

    Three months ended
March 31, 2013		     Three months ended
March 31, 2012		  
             
Revenues:                
Content Services   $ 16,268     $ 24,538  
IADS     635       598  
Total consolidated   $ 16,903     $ 25,136  
                 
Income (loss) before provision for income taxes:                
Content Services   $ 1,017     $ 6,492  
IADS (1)     (1,389 )     (2,770 )
Total consolidated   $ (372 )   $ 3,722  

 

    March 31, 2013     December 31, 2012  
             
Total assets:                
Content Services   $ 61,702     $ 61,858  
IADS     4,280       4,323  
Total consolidated   $ 65,982     $ 66,181  

 

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

  

Income (loss) before provision for income taxes for CS and IADS was $0.7 million and $(1.1) million, respectively, for the three months ended March 31, 2013, after eliminating 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,  
    2013     2012  
             
United States   $ 11,911     $ 19,961  
The Netherlands     2,057       1,696  
United Kingdom     1,851       2,146  
Other - principally Europe     1,084       1,333  
    $ 16,903     $ 25,136  

 

Long-lived assets as of March 31, 2013 and December 31, 2012, respectively, by geographic region, are comprised of (in thousands):

 

    2013     2012  
       
United States   $ 4,288     $ 3,978  
                 
Foreign countries:                
Philippines     1,830       1,424  
India     5,090       4,926  
Sri Lanka     936       931  
Israel     58       72  
Total foreign     7,914       7,353  
    $ 12,202     $ 11,331  

 

The top three clients generated approximately 42% and 56% of the Company’s total revenues for the three months ended March 31, 2013 and 2012, respectively. No other client accounted for 10% or more of total revenues in either period. Further, for the three months ended March 31, 2013 and 2012, revenues from non-U.S. clients accounted for 29% and 20%, respectively, of the Company's total revenues.

 

As of March 31, 2013, approximately 27% of the Company's accounts receivable was from foreign (principally European) clients and 44% of accounts receivable was due from three clients. 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.