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Segment Reporting and Concentrations
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
7.         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
 
Nine months ended
 
 
 
September 30,
 
September 30,
 
 
 
2013
 
2012
 
2013
 
2012
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
Content Services
 
$
15,591
 
$
19,670
 
$
47,867
 
$
66,860
 
IADS
 
 
155
 
 
40
 
 
942
 
 
753
 
Total consolidated
 
$
15,746
 
$
19,710
 
$
48,809
 
$
67,613
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before provision for income taxes:(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Content Services
 
$
1,934
 
$
2,890
 
$
4,015
 
$
12,785
 
IADS
 
 
(7,620)
 
 
(1,890)
 
 
(11,571)
 
 
(6,046)
 
Total consolidated
 
$
(5,686)
 
$
1,000
 
$
(7,556)
 
$
6,739
 
 
 
 
 
September 30, 2013
 
December 31, 2012
 
Total assets:
 
 
 
 
 
 
 
 
Content Services
 
 
$
49,473
 
$
59,908
 
IADS
 
 
 
832
 
 
6,273
 
Total consolidated
 
 
$
50,305
 
$
66,181
 
 
(1) Before elimination of any inter-segment profits.
 
Income (loss) before provision for (benefit from) income taxes for CS and IADS was $1.4 million and $(7.1) million, respectively, for the three months ended September 30, 2013, after eliminating inter-segment profits. Income (loss) before provision for (benefit from) income taxes for CS and IADS was $2.7 million and $(10.3) million, respectively, for the nine months ended September 30, 2013, after eliminating inter-segment profits.
 
Income (loss) before provision for income taxes for CS and IADS was $2.3 million and $(1.3)  million, respectively, for the three months ended September 30, 2012, after eliminating inter-segment profits. Income (loss) before provision for income taxes for CS and IADS was $11.4 million and $(4.7) million, respectively, for the nine months ended September 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
 
Nine months ended
 
 
 
September 30,
 
September 30,
 
 
 
2013
 
2012
 
2013
 
2012
 
Unites States
 
$
9,846
 
$
14,134
 
$
32,749
 
$
51,981
 
United Kingdom
 
 
2,222
 
 
2,355
 
 
5,884
 
 
6,505
 
The Netherlands
 
 
2,364
 
 
2,072
 
 
6,574
 
 
5,549
 
Other - principally Europe
 
 
1,314
 
 
1,149
 
 
3,602
 
 
3,578
 
 
 
$
15,746
 
$
19,710
 
$
48,809
 
$
67,613
 
 
Long-lived assets as of September 30, 2013 and December 31, 2012, respectively, by geographic region, are comprised of (in thousands):
 
 
 
September 30,
 
December 31,
 
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
United States
 
$
1,201
 
$
3,978
 
 
 
 
 
 
 
 
 
Foreign countries:
 
 
 
 
 
 
 
Philippines
 
 
1,873
 
 
1,424
 
India
 
 
2,846
 
 
4,926
 
Sri Lanka
 
 
1,041
 
 
931
 
Israel
 
 
45
 
 
72
 
Total foreign
 
 
5,805
 
 
7,353
 
 
 
$
7,006
 
$
11,331
 
 
Three clients generated approximately 42% and 46% of our total revenues for the three months ended September 30, 2013 and 2012, respectively. One additional client accounted for 11% of our total revenues for the three months ended September 30, 2013 but accounted for less than 10% of our total revenues for the three months ended September 30, 2012. No other client accounted for 10% or more of total revenues during these periods. Further, for the three months ended September 30, 2013 and 2012, revenues from non-U.S. clients accounted for 37% and 28%, respectively, of our total revenues.
 
Two clients generated approximately 27% and 44% of our total revenues for the nine months ended September 30, 2013 and 2012, respectively. Two additional clients accounted for 25% of our total revenues for the nine months ended September 30, 2013 but each accounted for less than 10% of our total revenues for the nine months ended September 30, 2012. No other client accounted for 10% or more of total revenues during these periods. Further, for the nine months ended September 30, 2013 and 2012, revenues from non-U.S. clients accounted for 33% and 23%, respectively, of our total revenues.
 
As of September 30, 2013, approximately 35% of the Company's accounts receivable was from foreign (principally European) clients and 62% 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.