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Segment Reporting and Concentrations
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
8.
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 e-books); 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,
 
Revenues:
 
2014
 
2013
 
2014
 
2013
 
Content Services
 
$
14,136
 
$
16,008
 
$
28,130
 
$
32,276
 
IADS
 
 
178
 
 
152
 
 
250
 
 
787
 
Total Consolidated
 
$
14,314
 
$
16,160
 
$
28,380
 
$
33,063
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss before provision for income taxes(1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Content Services
 
$
981
 
$
1,062
 
$
2,871
 
$
2,080
 
IADS
 
 
(1,826)
 
 
(2,561)
 
 
(3,721)
 
 
(3,950)
 
Total Consolidated
 
$
(845)
 
$
(1,499)
 
$
(850)
 
$
(1,870)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss before provision for income taxes(2):
 
 
 
 
 
 
 
 
 
 
 
 
 
Content Services
 
$
511
 
$
589
 
$
1,932
 
$
1,227
 
IADS
 
 
(1,356)
 
 
(2,088)
 
 
(2,782)
 
 
(3,097)
 
Total Consolidated
 
$
(845)
 
$
(1,499)
 
$
(850)
 
$
(1,870)
 
 
 
 
June 30, 2014
 
December 31, 2013
 
Total assets:
 
 
 
 
 
 
 
Content Services
 
$
51,057
 
$
48,981
 
IADS
 
 
1,020
 
 
1,016
 
Total Consolidated
 
$
52,077
 
$
49,997
 
 
(1) Before elimination of any inter-segment profits
 
(2) After elimination of any 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,
 
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
$
7,756
 
$
10,992
 
$
15,745
 
$
22,903
 
The Netherlands
 
 
2,645
 
 
2,151
 
 
5,276
 
 
4,210
 
United Kingdom
 
 
2,231
 
 
1,813
 
 
4,124
 
 
3,662
 
Other - principally Europe
 
 
1,682
 
 
1,204
 
 
3,235
 
 
2,288
 
 
 
$
14,314
 
$
16,160
 
$
28,380
 
$
33,063
 
 
Long-lived assets as of June 30, 2014 and December 31, 2013, respectively, by geographic region, are comprised of (in thousands):
 
 
 
June 30,
 
December 31,
 
 
 
2014
 
2013
 
 
 
 
 
 
 
 
 
United States
 
$
1,215
 
$
1,151
 
 
 
 
 
 
 
 
 
Foreign countries:
 
 
 
 
 
 
 
Philippines
 
 
2,311
 
 
1,917
 
India
 
 
2,592
 
 
2,660
 
Sri Lanka
 
 
1,061
 
 
989
 
Israel
 
 
32
 
 
41
 
Total foreign
 
 
5,996
 
 
5,607
 
 
 
$
7,211
 
$
6,758
 
 
Two clients generated approximately 32% and 25% of the Company’s total revenues for the three months ended June 30, 2014 and 2013, respectively. Two other clients accounted for less than 10% of the Company’s total revenues for the three months ended June 30, 2014 but accounted for 29% of the Company’s total revenues for the three months ended June 30, 2013. No other client accounted for 10% or more of total revenues during these periods. Further, for the three months ended June 30, 2014 and 2013, revenues from non-U.S. clients accounted for 46% and 32%, respectively, of the Company’s total revenues.
 
Two clients generated approximately 32% and 24% of the Company’s total revenues for the six months ended June 30, 2014 and 2013, respectively. Two other clients accounted for less than 10% of the Company’s total revenues for the six months ended June 30, 2014 but accounted for 29% of the Company’s total revenues for the six months ended June 30, 2013. No other client accounted for 10% or more of total revenues during these periods. Further, for the six months ended June 30, 2014 and 2013, revenues from non-U.S. clients accounted for 45% and 31%, respectively, of the Company’s total revenues.
 
As of June 30, 2014, approximately 54% of the Company's accounts receivable was from foreign (principally European) clients and 47% of accounts receivable was due from three clients. As of December 31, 2013, approximately 38% of the Company's accounts receivable was from foreign (principally European) clients and 65% of accounts receivable was due from four clients.