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Business Segments and Geographic Information
 9 Months Ended
Sep. 30, 2024
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 the United States, Canada, the United Kingdom, 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.
Below are the operating results of our reporting segments.
 
    
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
    
2024
    
2023
    
2024
    
2023
  
    
(Amounts in thousands)
    
(Amounts in thousands)
  
Revenues:
         
Data and Analytics Services
    $ 9,398     $ 8,038     $ 26,341     $ 26,206  
IT Staffing Services
      42,441       39,741       121,855       128,840  
  
 
 
    
 
 
    
 
 
    
 
 
  
Total revenues
    $ 51,839     $ 47,779     $ 148,196     $ 155,046  
  
 
 
    
 
 
    
 
 
    
 
 
  
Gross Margin %:
         
Data and Analytics Services
      50.7 %      45.8 %      48.9 %      43.1 % 
IT Staffing Services
      23.6 %      22.4 %      23.0 %      22.0 % 
  
 
 
    
 
 
    
 
 
    
 
 
  
Total gross margin %
      28.5 %      26.3 %      27.6 %      25.6 % 
  
 
 
    
 
 
    
 
 
    
 
 
  
Segment operating income (loss):
         
Data and Analytics Services
    $ 1,145     $ (832 )    $ 1,435     $ (2,393 ) 
IT Staffing Services
      1,951       1,476       4,334       5,227  
  
 
 
    
 
 
    
 
 
    
 
 
  
Subtotal
      3,096       644       5,769       2,834  
Amortization of acquired intangible assets
      (657 )      (693 )      (2,043 )      (2,079 ) 
Employment-related claim, net of recoveries
      —        —        —        (3,100 ) 
Interest income (expense), FX gains (losses) and other, net
      133       203       373       200  
  
 
 
    
 
 
    
 
 
    
 
 
  
Income (loss) before income taxes
    $ 2,572     $ 154     $ 4,099     $ (2,145 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Below is a reconciliation of segment total assets to consolidated total assets:
 
    
September 30,
2024
     
December 31,
2023
  
    
(Amounts in thousands)
  
Total assets:
      
Data and Analytics Services
    $ 45,735      $ 45,681  
IT Staffing Services
      65,750        59,546  
  
 
 
     
 
 
  
Total assets
    $ 111,485      $ 105,227  
  
 
 
     
 
 
  
Below is geographic information related to our revenues from external customers:
 
    
Three Months Ended
September 30,
     
Nine Months Ended
September 30,
  
    
2024
     
2023
     
2024
     
2023
  
    
(Amounts in thousands)
     
(Amounts in thousands)
  
United States
    $ 51,043      $ 46,778      $ 145,674      $ 151,798  
Canada
      198        627        800        2,159  
India and Other
      598        374        1,722        1,089  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total revenues
    $ 51,839      $ 47,779      $ 148,196      $ 155,046  
  
 
 
     
 
 
     
 
 
     
 
 
  
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