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Business Segments and Geographic Information
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Business Segments and Geographic Information
15.
Business Segments and Geographic Information
Our reporting segments are: 1) Data and Analytics Services; and 2) IT Staffing Services.
The Data and Analytics Services segment was acquired through the July 13, 2017 acquisition of the services division of Canada-based InfoTrellis, Inc. This segment is a project-based consulting services business with specialized capabilities in data management and analytics. The business is marketed as Mastech InfoTrellis and utilizes a dedicated sales team with deep subject matter expertise. Mastech InfoTrellis has offices in Atlanta, Toronto, London, Dublin and Singapore, and a global delivery center in Chennai, India. Project-based delivery reflects a combination of
on-site
resources and offshore resources. Assignments are secured on both a time and material and fixed price basis. In October 2020, we acquired AmberLeaf, a Chicago-based customer experience consulting firm. This acquisition expanded our capabilities in customer experience strategy and managed services offering for a variety of Cloud-based enterprise application across sales, marketing and customer service organizations.
The IT Staffing Services segment offers staffing services in digital and mainstream technologies and uses digital methods to enhance organizational learning. These services are marketed using a common sales force and delivered via our domestic and global recruitment centers. While the vast majority of our assignments are based on time and materials, we do have the capabilities to deliver our digital transformation services on a fixed price basis.
 
    
Three Months Ended

June 30,
    
Six Months Ended

June 30,
  
    
2022
    
2021
    
2022
    
2021
  
                          
    
(Amounts in thousands)
    
(Amounts in thousands)
  
Revenues:
         
Data and Analytics Services
    $ 11,250     $ 8,950     $ 21,402     $ 17,744  
IT Staffing Services
      50,867       44,708       100,470       85,689  
  
 
 
    
 
 
    
 
 
    
 
 
  
Total revenues
    $ 62,117     $ 53,658     $ 121,872     $ 103,433  
  
 
 
    
 
 
    
 
 
    
 
 
  
Gross Margin %:
         
Data and Analytics Services
      43.6 %      46.7 %      44.3 %      46.2 % 
IT Staffing Services
      23.3 %      22.7 %      23.1 %      22.1 % 
  
 
 
    
 
 
    
 
 
    
 
 
  
Total gross margin %
      27.0 %      26.7 %      26.8 %      26.2 % 
  
 
 
    
 
 
    
 
 
    
 
 
  
Segment operating income:
         
Data and Analytics Services
    $ 817     $ 769     $ 1,789     $ 1,163  
IT Staffing Services
      3,523       3,353       6,650       5,621  
  
 
 
    
 
 
    
 
 
    
 
 
  
Subtotal
      4,340       4,122       8,439       6,784  
Amortization of acquired intangible assets
      (792 )      (793 )      (1,584 )      (1,586 ) 
Revaluation of contingent consideration liability
      —         1,982       —         1,982  
Interest expenses and other, net
      68       (144 )      8       (376 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Income before income taxes
    $ 3,616     $ 5,167     $ 6,863     $ 6,804  
  
 
 
    
 
 
    
 
 
    
 
 
  
 
Below is a reconciliation of segment total assets to consolidated total assets:
 
    
June 30,

2022
     
December 31,

2021
  
               
    
(Amounts in thousands)
  
Total assets:
      
Data and Analytics Services
    $ 58,680      $ 56,634  
IT Staffing Services
      60,461        57,068  
  
 
 
     
 
 
  
Total assets
    $ 119,141      $  113,702  
  
 
 
     
 
 
  
Below is geographic information related to our revenues from external customers:
 
    
Three Months Ended

June 30,
     
Six Months Ended

June 30,
  
    
2022
     
2021
     
2022
     
2021
  
                             
    
(Amounts in thousands)
     
(Amounts in thousands)
  
United States
    $ 60,468      $ 51,532      $ 118,815      $ 99,474  
Canada
      1,130        1,018        2,149        2,282  
India and Other
      519        1,108        908        1,677  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total revenues
    $ 62,117      $ 53,658      $ 121,872      $ 103,433