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Business Segments and Geographic Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Business Segments and Geographic Information
12.
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, engineering services 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

September 30,
    
Nine Months Ended

September 30,
  
    
2023
    
2022
    
2023
    
2022
  
                          
    
(Amounts in thousands)
    
(Amounts in thousands)
  
Revenues:
         
Data and Analytics Services
    $ 8,038     $ 10,076     $ 26,206     $ 31,478  
IT Staffing Services
      39,741       53,074       128,840       153,544  
  
 
 
    
 
 
    
 
 
    
 
 
  
Total revenues
    $ 47,779     $ 63,150     $ 155,046     $ 185,022  
  
 
 
    
 
 
    
 
 
    
 
 
  
Gross Margin %:
         
Data and Analytics Services
      45.8 %      39.6 %      43.1 %      42.8 % 
IT Staffing Services
      22.4 %      23.2 %      22.0 %      23.1 % 
  
 
 
    
 
 
    
 
 
    
 
 
  
Total gross margin %
      26.3 %      25.8 %      25.6 %      26.5 % 
  
 
 
    
 
 
    
 
 
    
 
 
  
Segment operating income (loss):
         
Data and Analytics Services
    $ (832 )    $ 826     $ (2,393 )    $ 2,615  
IT Staffing Services
      1,476       3,892       5,227       10,542  
  
 
 
    
 
 
    
 
 
    
 
 
  
Subtotal
      644       4,718       2,834       13,157  
Amortization of acquired intangible assets
      (693 )      (791 )      (2,079 )      (2,375 ) 
Employment-related claim, net of recoveries
      —        —        (3,100 )      —   
Reserve for cyber-security breach
      —        (450 )      —        (450 ) 
Severance expense
      —        (120 )      —        (120 ) 
Interest expenses, FX gains/losses and other, net
      203       —        200       8  
  
 
 
    
 
 
    
 
 
    
 
 
  
Income (loss) before income taxes
    $ 154     $ 3,357     $ (2,145 )    $ 10,220  
  
 
 
    
 
 
    
 
 
    
 
 
  
Below is a reconciliation of segment total assets to consolidated total assets:
 
    
September 30,

2023
     
December 31,

2022
  
               
    
(Amounts in thousands)
  
Total assets:
      
Data and Analytics Services
    $ 51,845      $ 54,544  
IT Staffing Services
      57,698        54,335  
  
 
 
     
 
 
  
Total assets
    $ 109,543      $ 108,879  
  
 
 
     
 
 
  
Below is geographic information related to our revenues from external customers:
 
    
Three Months Ended

September 30,
     
Nine Months Ended

September 30,
  
    
2023
     
2022
     
2023
     
2022
  
                             
    
(Amounts in thousands)
     
(Amounts in thousands)
  
United States
    $ 46,778      $ 61,704      $ 151,798      $ 180,519  
Canada
      627        1,038        2,159        3,187  
India and Other
      374        408        1,089        1,316  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total revenues
    $ 47,779      $ 63,150      $ 155,046      $ 185,022