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Segment Reporting and Concentrations
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
10.
Segment Reporting and Concentrations
 
The Company’s operations are classified into three reportable segments: Digital Data Solutions (DDS), Innodata Advanced Data Solutions (IADS) and Media Intelligence Solutions (MIS).
 
The DDS 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.
 
The IADS segment performs 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.
 
In July 2014, the Company acquired MediaMiser, an Ottawa, Canada-based provider of automated, real-time traditional and social media monitoring services. In December 2014, the Company acquired intellectual property and related assets of Bulldog Reporter. On July 14, 2016, Innodata’s MediaMiser subsidiary acquired Agility. All these businesses constitute the Company’s MIS segment.
 
A significant portion of the Company’s revenues is generated from its production facilities in the Philippines, India, Sri Lanka, Canada, Germany and Israel.
 
Revenues from external clients and segment operating profit (loss), and other reportable segment information are as follows (in thousands):
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
DDS
 
$
12,052
 
$
13,474
 
$
38,928
 
$
38,035
 
IADS
 
 
1,028
 
 
484
 
 
3,090
 
 
1,434
 
MIS
 
 
2,980
 
 
1,177
 
 
5,382
 
 
3,531
 
Total Consolidated
 
$
16,060
 
$
15,135
 
$
47,400
 
$
43,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before provision for income taxes(1):
 
 
 
 
 
 
 
 
 
 
 
 
 
DDS
 
$
(1,132)
 
$
2,534
 
$
1,195
 
$
3,596
 
IADS
 
 
(1,296)
 
 
(1,496)
 
 
(3,754)
 
 
(4,590)
 
MIS
 
 
(92)
 
 
(302)
 
 
(1,164)
 
 
(888)
 
Total Consolidated
 
$
(2,520)
 
$
736
 
$
(3,723)
 
$
(1,882)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before provision for income taxes(2):
 
 
 
 
 
 
 
 
 
 
 
 
 
DDS
 
$
(1,882)
 
$
1,892
 
$
(980)
 
$
1,755
 
IADS
 
 
(553)
 
 
(861)
 
 
(1,598)
 
 
(2,773)
 
MIS
 
 
(85)
 
 
(295)
 
 
(1,145)
 
 
(864)
 
Total Consolidated
 
$
(2,520)
 
$
736
 
$
(3,723)
 
$
(1,882)
 
 
 
 
 
September 30, 2016
 
 
December 31, 2015
 
Total assets:
 
 
 
 
 
 
 
DDS
 
$
29,505
 
$
41,842
 
IADS
 
 
735
 
 
1,026
 
MIS
 
 
20,673
 
 
8,369
 
Total Consolidated
 
$
50,913
 
$
51,237
 
 
(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 and based upon customer’s domicile) (in thousands):
 
 
 
Three months ended
 
Nine months ended
 
 
 
September 30,
 
September 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
 
United States
 
$
8,263
 
$
7,275
 
$
24,614
 
$
20,478
 
The Netherlands
 
 
2,006
 
 
2,514
 
 
7,096
 
 
7,274
 
United Kingdom
 
 
2,417
 
 
2,520
 
 
6,397
 
 
6,771
 
Canada
 
 
1,491
 
 
1,472
 
 
4,465
 
 
4,298
 
Other - principally Europe
 
 
1,883
 
 
1,354
 
 
4,828
 
 
4,179
 
 
 
$
16,060
 
$
15,135
 
$
47,400
 
$
43,000
 
 
Long-lived assets as of September 30, 2016 and December 31, 2015, respectively, by geographic region, are comprised of (in thousands):
 
 
 
September 30,
 
December 31,
 
 
 
2016
 
2015
 
 
 
 
 
 
 
United States
 
$
4,676
 
$
1,104
 
 
 
 
 
 
 
 
 
Foreign countries:
 
 
 
 
 
 
 
Canada
 
 
5,121
 
 
635
 
United Kingdom
 
 
2,548
 
 
-
 
Philippines
 
 
1,991
 
 
5,223
 
India
 
 
1,639
 
 
1,611
 
Sri Lanka
 
 
689
 
 
1,580
 
Israel
 
 
48
 
 
31
 
Germany
 
 
2
 
 
2
 
Total foreign
 
 
12,038
 
 
9,082
 
 
 
$
16,714
 
$
10,186
 
 
Two clients in the DDS Segment generated approximately 27% of the Company’s total revenues for the three months ended September 30, 2016 and 34% of the Company’s total revenues for the three months ended September 30, 2015. Another client in the DDS segment accounted for less than 10% of the Company’s total revenues for the three months ended September 30, 2016 but accounted for 10% of the Company’s total revenues for the three months ended September 30, 2015. No other client accounted for 10% or more of total revenues during these periods. Further, for the three months ended September 30, 2016 and 2015, revenues from non-U.S. clients accounted for 48% and 52%, respectively, of the Company’s total revenues.
 
Two clients in the DDS Segment generated approximately 30% of the Company’s total revenues for the nine months ended September 30, 2016 and 34% of the Company’s total revenues for the nine months ended September 30, 2015. No other client accounted for 10% or more of total revenues during these periods. Further, for the nine months ended September 30, 2016 and 2015, revenues from non-U.S. clients accounted for 48% and 52%, respectively, of the Company’s total revenues.
 
As of September 30, 2016, approximately 53% 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, 2015, approximately 62% of the Company's accounts receivable was from foreign (principally European) clients and 68% of accounts receivable was due from four clients.