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Segment Reporting and Concentrations
3 Months Ended
Mar. 31, 2020
Segment Reporting and Concentrations  
Segment Reporting and Concentrations

9.           Segment Reporting and Concentrations

The Company’s operations are classified in three reporting segments: Digital Data Solutions (DDS), Synodex and Agility.

The DDS segment provides a range of solutions and platforms for solving complex data challenges that companies face when they seek to obtain the benefits of artificial intelligence (AI) systems and analytics platforms. These include data annotation, data transformation, data curation and intelligent automation. The DDS segment also provides a variety of services for clients in the information industry that relate to content operations and product development.

The Synodex segment provides an intelligent data platform that transforms medical records into useable digital data organized in accordance with our proprietary data models or client data models.

The Agility segment provides an intelligent data platform that provides marketing communications and public relations professionals with the ability to target and distribute content to journalists and social media influencers world-wide and to monitor and analyze global news channels (print, web, radio and TV) and social media channels.

A significant portion of the Company’s revenues is generated from its 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 were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

For the three months ended March 31,

 

    

2020

    

2019

Revenues:

 

 

  

 

 

  

DDS

 

$

10,409

 

$

10,177

Synodex

 

 

1,282

 

 

1,024

Agility

 

 

2,839

 

 

2,493

Total Consolidated

 

$

14,530

 

$

13,694

 

 

 

 

 

 

 

Income (loss) before provision for income taxes(1):

 

 

 

 

 

 

DDS

 

$

129

 

$

74

Synodex

 

 

196

 

 

119

Agility

 

 

(274)

 

 

(672)

Total Consolidated

 

$

51

 

$

(479)

 

 

 

 

 

 

 

Income (loss) before provision for income taxes(2):

 

 

 

 

 

 

DDS

 

$

59

 

$

12

Synodex

 

 

241

 

 

159

Agility

 

 

(249)

 

 

(650)

Total Consolidated

 

$

51

 

$

(479)

 

 

 

 

 

 

 

 

 

    

March 31, 2020

    

December 31 , 2019

Total assets:

 

 

  

 

 

  

DDS

 

$

21,537

 

$

23,196

Synodex

 

 

598

 

 

675

Agility

 

 

26,741

 

 

25,875

Total Consolidated

 

$

48,876

 

$

49,746

 

 

 

 

 

 

 

 

 

    

March 31, 2020

    

December 31, 2019

Goodwill:

 

 

  

 

 

  

Agility

 

$

2,003

 

$

2,108

Total Consolidated

 

$

2,003

 

$

2,108


(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):

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

March 31, 

 

    

2020

    

2019

 

 

 

 

 

 

 

United States

 

$

6,690

 

$

6,531

United Kingdom

 

 

2,771

 

 

2,318

The Netherlands

 

 

1,640

 

 

1,722

Canada

 

 

1,545

 

 

1,484

Others - principally Europe

 

 

1,884

 

 

1,639

Totals

 

$

14,530

 

$

13,694

 

Long-lived assets of the Company as of March 31, 2020 and December 31, 2019, respectively, by geographic region, were comprised of the following (in thousands):

 

 

 

 

 

 

 

 

 

    

March 31, 

    

December 31, 

 

 

2020

 

2019

United States

 

$

4,455

 

$

4,591

 

 

 

  

 

 

 

Foreign countries:

 

 

  

 

 

 

Canada

 

 

8,216

 

 

8,876

United Kingdom

 

 

1,738

 

 

1,907

Philippines

 

 

4,998

 

 

5,135

India

 

 

381

 

 

508

Sri Lanka

 

 

632

 

 

678

Israel

 

 

 4

 

 

19

Germany

 

 

 1

 

 

 1

Total foreign

 

 

15,970

 

 

17,124

Totals

 

$

20,425

 

$

21,715

 

Long-lived assets include the unamortized balance of right-of-use assets amounting to $6.5 million and $7.0 million as of March 31, 2020 and December 31, 2019, respectively.

One client in the DDS segment generated approximately 14% of the Company’s total revenues for the three months ended March 31, 2020 and 16% of the Company’s total revenues for the three months ended March 31, 2019.  Another client generated less than 10% of the Company’s total revenues for the three months ended March 31, 2020 and 10% of the Company’s total revenues for the three months ended March 31, 2019. No other client accounted for 10% or more of total revenues during these periods. Further, revenues from non-U.S. clients accounted for 54% and 52% of the Company’s total revenues for the three months ended March 31, 2020 and 2019, respectively.

As of March 31, 2020, approximately 59% of the Company's accounts receivable was from foreign (principally European) clients and 28% of the Company’s accounts receivable was due from two clients.  As of December 31, 2019, approximately 60% of the Company's accounts receivable was from foreign (principally European) clients and 44% of the Company’s accounts receivable was due from three clients.