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Business Segments and Geographic Information
3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Business Segments and Geographic Information
 
13.
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 and London, 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

March 31,
 
    
2023
   
2022
 
              
    
(Amounts in thousands)
 
Revenues:
                
Data and Analytics Services
   $ 9,395     $ 10,152  
IT Staffing Services
     45,668       49,603  
    
 
 
   
 
 
 
Total revenues
   $ 55,063     $ 59,755  
    
 
 
   
 
 
 
Gross Margin %:
                
Data and Analytics Services
     38.5     45.2
IT Staffing Services
     21.6     22.9
    
 
 
   
 
 
 
Total gross margin %
     24.5     26.7
    
 
 
   
 
 
 
Segment operating income:
                
Data and Analytics Services
   $ (680   $ 972  
IT Staffing Services
     1,905       3,127  
    
 
 
   
 
 
 
Subtotal
     1,225       4,099  
Amortization of acquired intangible assets
     (693     (792
Interest expense, FX gains/losses and other, net
     (53     (60
    
 
 
   
 
 
 
Income before income taxes
   $ 479     $ 3,247  
    
 
 
   
 
 
 
Below is a reconciliation of segment total assets to consolidated total assets:
 
    
March 31,

2023
    
December 31,

2022
 
               
    
(Amounts in thousands)
 
Total assets:
                 
Data and Analytics Services
   $ 53,571      $ 54,544  
IT Staffing Services
     55,263        54,335  
    
 
 
    
 
 
 
Total assets
   $ 108,834      $ 108,879  
    
 
 
    
 
 
 
Below is geographic information related to our revenues from external customers:
 
    
Three Months Ended

March 31,
 
    
2023
    
2022
 
               
    
(Amounts in thousands)
 
United States
   $ 53,755      $ 58,347  
Canada
     831        1,019  
India and Other
     477        389  
    
 
 
    
 
 
 
Total revenues
   $ 55,063      $ 59,755