XML 26 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment Reporting and Concentrations
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
9.
Segment Reporting and Concentrations
 
The Company’s operations are classified in three reporting segments: Digital Data Solutions (DDS), Agility PR Solutions (Agility); and Synodex.
 
Prior to the first quarter of 2018 the Company referred to the Agility segment as Media Intelligence Solutions (MIS) and the Synodex segment as Innodata Advanced Data Solutions (IADS), and reported the results of the Innodata docGenix, LLC subsidiary (docGenix) within the IADS segment. Effective with the first quarter of 2018 the results for docGenix are reported within the DDS segment.
 
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; development of new digital information products; or operational support of existing digital information products and systems. By blending consulting, technology and global operations with deep domain expertise, we provide measurable outcomes for publishing companies, information services companies, and enterprises through digital business transformation, accelerating innovation and efficiency of operations.
 
The Synodex segment designs and develops new capabilities to enable clients in the insurance and healthcare sectors to transform medical records into useable digital data and to apply technologies to the data to augment decision support.
 
The Agility segment provides PR tools and related managed services that enable PR and communications professionals to identify influencers, amplify messages, monitor coverage, and measure the impact of campaigns. Agility also owns Bulldog Reporter, a publisher of PR-related news and insights and the Daily Dog, a well-known daily e-newsletter, and the Bulldog Awards, the only PR awards program judged exclusively by working journalists.
 
A significant portion of the Company’s revenues is generated from its production facilities in the Philippines, India, Sri Lanka, Canada, Germany, the United Kingdom and Israel.
 
Revenues from external clients and segment operating profit (loss), and other reportable segment information are as follows (in thousands):
 
The results below for the three months ended March 31, 2017 are presented on a reclassified basis as if for the first quarter of 2017 docGenix had been included in the DDS segment and the Synodex segment had solely included the results of Synodex. docGenix revenue was $132,000 and $278,000 in the first quarter of 2018 and 2017, respectively.
 
 
 
Three Months Ended March 31,
 
Revenues:
 
2018
 
2017
 
DDS
 
$
10,477
 
$
11,633
 
Synodex
 
 
981
 
 
724
 
Agility
 
 
2,662
 
 
2,596
 
Total Consolidated
 
$
14,120
 
$
14,953
 
 
 
 
 
 
 
 
 
Income (loss) before provision for income taxes(1):
 
 
 
 
 
 
 
DDS
 
$
656
 
$
(179)
 
Synodex
 
 
(35)
 
 
(1,042)
 
Agility
 
 
(315)
 
 
(162)
 
Total Consolidated
 
$
306
 
$
(1,383)
 
 
 
 
 
 
 
 
 
Income (loss) before provision for income taxes(2):
 
 
 
 
 
 
 
DDS
 
$
590
 
$
(725)
 
Synodex
 
 
7
 
 
(506)
 
Agility
 
 
(291)
 
 
(152)
 
Total Consolidated
 
$
306
 
$
(1,383)
 
 
 
 
March 31, 2018
 
December 31, 2017
 
Total assets:
 
 
 
 
 
 
 
DDS
 
$
23,120
 
$
26,173
 
Synodex
 
 
466
 
 
678
 
Agility
 
 
22,969
 
 
21,020
 
Total Consolidated
 
$
46,555
 
$
47,871
 
 
 
 
March 31, 2018
 
December 31, 2017
 
Goodwill:
 
 
 
 
 
 
 
DDS
 
$
675
 
$
675
 
Agility
 
 
2,159
 
 
2,157
 
Total Consolidated
 
$
2,834
 
$
2,832
 
 
(1) Before elimination of inter-segment profits
(2) After elimination of inter-segment profits
 
The following table summarizes revenues by geographic region (determined and based upon customer’s domicile) (in thousands):
 
 
 
Three months ended
 
 
 
March 31,
 
 
 
2018
 
2017
 
 
 
 
 
 
 
 
 
United States
 
$
5,979
 
$
6,621
 
United Kingdom
 
 
2,955
 
 
3,285
 
The Netherlands
 
 
1,762
 
 
1,894
 
Canada
 
 
1,469
 
 
1,475
 
Other - principally Europe
 
 
1,955
 
 
1,678
 
 
 
$
14,120
 
$
14,953
 
 
Long-lived assets as of March 31, 2018 and December 31, 2017, respectively, by geographic region, are comprised of (in thousands):
 
 
 
March 31,
 
December 31,
 
 
 
2018
 
2017
 
 
 
 
 
 
 
 
 
United States
 
$
5,223
 
$
5,321
 
 
 
 
 
 
 
 
 
Foreign countries:
 
 
 
 
 
 
 
Canada
 
 
6,901
 
 
6,888
 
United Kingdom
 
 
2,444
 
 
2,388
 
Philippines
 
 
1,259
 
 
1,446
 
India
 
 
915
 
 
1,042
 
Sri Lanka
 
 
443
 
 
504
 
Israel
 
 
32
 
 
36
 
Germany
 
 
2
 
 
2
 
Total foreign
 
 
11,996
 
 
12,306
 
 
 
$
17,219
 
$
17,627
 
 
Two clients in the DDS segment generated approximately 32% of the Company’s total revenues for the three months ended March 31, 2018 and 30% of the Company’s total revenues for the three months ended March 31, 2017. No other client accounted for 10% or more of total revenues during these periods. Further, for the three months ended March 31, 2018 and 2017, revenues from non-U.S. clients accounted for 58% and 56%, respectively, of the Company’s total revenues.
 
As of March 31, 2018, approximately 64% 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, 2017, approximately 61% of the Company's accounts receivable was from foreign (principally European) clients and 51% of accounts receivable was due from three clients.