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Business Segments and Geographic Information | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
Business Segments and Geographic Information |
16. | 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 Info Trellis, 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 expands 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 learning services on a fixed price basis. Below are the operating results of our reporting segments:
|  | Years Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (Amounts in thousands) |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Data and Analytics Services |  | $ | 34,358 |  |  | $ | 40,594 |  |  | $ | 38,339 |
IT Staffing Services |  |  | 166,740 |  |  |  | 201,644 |  |  |  | 183,673 |
Total revenues |  | $ | 201,098 |  |  | $ | 242,238 |  |  | $ | 222,012 |
Gross Margin %: |  |  |  |  |  |  |  |  |  |  |  |
Data and Analytics Services |  |  | 43.5 | % |  |  | 41.5 | % |  |  | 48.4 | %
IT Staffing Services |  |  | 21.6 | % |  |  | 23.0 | % |  |  | 22.3 | %
Total gross margin % |  |  | 25.4 | % |  |  | 26.1 | % |  |  | 26.8 | %
Segment operating income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Data and Analytics Services |  | $ | (1,807 | ) |  | $ | 3,329 |  |  | $ | 5,310 |
IT Staffing Services |  |  | 6,054 |  |  |  | 13,297 |  |  |  | 12,728 |
Subtotal |  |  | 4,247 |  |  |  | 16,626 |  |  |  | 18,038 |
Amortization of acquired intangible assets |  |  | (2,772 | ) |  |  | (2,987 | ) |  |  | (3,170 | )
Goodwill impairment |  |  | (5,300 | ) |  |  | — |  |  |  | — |
Employment-related claim, net of recoveries |  |  | (3,100 | ) |  |  | — |  |  |  | — |
Cybersecurity breach |  |  | — |  |  |  | (450 | ) |  |  | — |
Severance expense |  |  | (2,350 | ) |  |  | (990 | ) |  |  | — |
Revaluation of contingent consideration liability |  |  | — |  |  |  | — |  |  |  | 2,882 |
Acquisition transaction expenses |  |  | — |  |  |  | — |  |  |  | (140 | )
Interest expense, FX gains/losses and other, net |  |  | 244 |  |  |  | 292 |  |  |  | (724 | )
Income (loss) before income taxes |  | $ | (9,031 | ) |  | $ | 12,491 |  |  | $ | 16,886 |
Below is a reconciliation of total assets, depreciation and amortization and capital expenditures by segment:
|  | Total Assets |  |  | Depreciation & Amortization |  |  | Capital Expenditures |
(Amounts in thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2023 |  |  | 2022 |  |  | 2021 |
Data and Analytics Services |  | $ | 45,681 |  |  | $ | 54,544 |  |  | $ | 56,634 |  |  | $ | 2,704 |  |  | $ | 2,860 |  |  | $ | 2,662 |  |  | $ | 177 |  |  | $ | 756 |  |  | $ | 1,692 |
IT Staffing Services |  |  | 59,546 |  |  |  | 54,335 |  |  |  | 57,434 |  |  |  | 1,151 |  |  |  | 1,335 |  |  |  | 1,317 |  |  |  | 158 |  |  |  | 79 |  |  |  | 203 |
Total |  | $ | 105,227 |  |  | $ | 108,879 |  |  | $ | 114,068 |  |  | $ | 3,855 |  |  | $ | 4,195 |  |  | $ | 3,979 |  |  | $ | 335 |  |  | $ | 835 |  |  | $ | 1,895 |
Below is geographic information related to our revenues from external customers and fixed assets, net (equipment, enterprise software and leasehold improvements):
|  | Revenues |  |  | Equipment, Enterprise Software and Leasehold Improvements, net |
Amounts in thousands |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2023 |  |  | 2022 |  |  | 2021 |
United States |  | $ | 197,246 |  |  | $ | 236,187 |  |  | $ | 214,379 |  |  | $ | 791 |  |  | $ | 1,353 |  |  | $ | 2,221 |
Canada |  |  | 2,474 |  |  |  | 4,215 |  |  |  | 4,543 |  |  |  | 332 |  |  |  | 429 |  |  |  | 2 |
India and Other |  |  | 1,378 |  |  |  | 1,836 |  |  |  | 3,090 |  |  |  | 790 |  |  |  | 883 |  |  |  | 815 |
Total |  | $ | 201,098 |  |  | $ | 242,238 |  |  | $ | 222,012 |  |  | $ | 1,913 |  |  | $ | 2,665 |  |  | $ | 3,038 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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