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Segment Reporting and Concentrations
 6 Months Ended
Jun. 30, 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 certain 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 (loss), and other reportable segment information are as follows (in thousands):
 
 
 
Three months ended
 
Six months ended
 
 
 
June 30,
 
June 30,
 
 
 
2013
 
2012
 
2013
 
2012
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Content Services
 
$
16,008
 
$
22,653
 
$
32,276
 
$
47,191
 
IADS
 
 
152
 
 
115
 
 
787
 
 
713
 
Total consolidated
 
$
16,160
 
$
22,768
 
$
33,063
 
$
47,904
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before provision for income taxes:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Content Services
 
$
1,062
 
$
3,404
 
$
2,080
 
$
9,896
 
IADS
 
 
(2,561)
 
 
(1,386)
 
 
(3,950)
 
 
(4,156)
 
Total consolidated
 
$
(1,499)
 
$
2,018
 
$
(1,870)
 
$
5,740
 
 
 
 
June 30, 2013
 
December 31, 2012
 
Total assets:
 
 
 
 
 
 
 
Content Services
 
$
60,203
 
$
61,858
 
IADS
 
 
4,647
 
 
4,323
 
Total consolidated
 
$
64,850
 
$
66,181
 
 
(1) Before elimination of any inter-segment profits.
 
Income (loss) before provision for (benefit from) income taxes for CS and IADS was $0.6 million and $(2.1) million, respectively, for the three months ended June 30, 2013, after eliminating inter-segment profits. Income (loss) before provision for (benefit from) income taxes for CS and IADS was $1.3 million and $(3.2) million, respectively, for the six months ended June 30, 2013, after eliminating inter-segment profits.
 
Income (loss) before provision for income taxes for Content Service and IADS  was $3.7 million and $(1.7) million, respectively, for the three months ended June 30, 2012, after eliminating inter-segment profits. Income (loss) before provision for income taxes for Content Service and IADS were $8.9 million and $(3.2) million, respectively, for the six months ended June 30, 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
 
Six months ended
 
 
 
June 30,
 
June 30,
 
 
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unites States
 
$
10,992
 
$
17,813
 
$
22,903
 
$
37,846
 
United Kingdom
 
 
1,813
 
 
2,004
 
 
3,662
 
 
4,151
 
The Netherlands
 
 
2,151
 
 
1,780
 
 
4,210
 
 
3,477
 
Other - principally Europe
 
 
1,204
 
 
1,171
 
 
2,288
 
 
2,430
 
 
 
$
16,160
 
$
22,768
 
$
33,063
 
$
47,904
 
 
Long-lived assets as of June 30, 2013 and December 31, 2012, respectively, by geographic region, are comprised of (in thousands):
 
 
 
June 30,
 
December 31,
 
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
United States
 
$
4,729
 
$
3,978
 
 
 
 
 
 
 
 
 
Foreign countries:
 
 
 
 
 
 
 
Philippines
 
 
1,995
 
 
1,424
 
India
 
 
4,953
 
 
4,926
 
Sri Lanka
 
 
1,022
 
 
931
 
Israel
 
 
45
 
 
72
 
Total foreign
 
 
8,015
 
 
7,353
 
 
 
$
12,744
 
$
11,331
 
 
Two clients generated approximately 28% and 47% of our total revenues for the three months ended June 30, 2013 and 2012, respectively. Two additional clients accounted for 26% of our total revenues for the three months ended June 30, 2013 but  each accounted for less than 10% of our total revenues for the three months ended June 30, 2012. No other client accounted for 10% or more of total revenues during these periods. Further, for the three months ended June 30, 2013 and 2012, revenues from non-U.S. clients accounted for 32% and 22%, respectively, of our total revenues.
 
Two clients generated approximately 27% and 48% of our total revenues for the six months ended June 30, 2013 and 2012, respectively. Two additional clients accounted for 25% of our total revenues for the six months ended June 30, 2013 but  each accounted for less than 10% of our total revenues for the six months ended June 30, 2012. No other client accounted for 10% or more of total revenues during these periods. Further, for the six months ended June 30, 2013 and 2012, revenues from non-U.S. clients accounted for 31% and 21%, respectively, of our total revenues.
 
As of June 30, 2013, approximately 36% of the Company's accounts receivable was from foreign (principally European) clients and 61% of accounts receivable was due from four 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.