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Business Segments and Geographic Information
 12 Months Ended
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