SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2014

SEGMENT INFORMATION [ABSTRACT]

SEGMENT INFORMATION

(3)SEGMENT INFORMATION

The Company reports the following four segments:

• the CMS segment includes the customer experience delivery solutions which integrate innovative technology with highly-trained customer experience professionals to optimize the customer experience across all channels and all stages of the customer lifecycle from an onshore, offshore or work-from-home environment;
• the CGS segment provides technology-enabled sales and marketing solutions that support revenue generation across the customer lifecycle, including sales advisory, search engine optimization, digital demand generation, lead qualification, and acquisition sales, growth and retention services;

• the CTS segment includes operational and design consulting, systems integration, and cloud and on-premise managed services, the requirements needed to design, deliver and maintain best-in-class multichannel customer engagement platforms; and
• the CSS segment provides professional services in customer experience strategy, customer intelligence analytics, system and operational process optimization, and culture development and knowledge management.

The Company allocates to each segment its portion of corporate operating expenses. All intercompany transactions between the reported segments for the periods presented have been eliminated.

The following tables present certain financial data by segment (in thousands):

Three Months Ended September 30, 2014
			Gross Revenue		Intersegment Sales		Net Revenue		Depreciation & Amortization		Income (Loss) from Operations
Customer Management Services		$	226,814	$	-	$	226,814	$	9,973	$	18,625
Customer Growth Services			28,765		-		28,765		1,511		1,800
Customer Technology Services			35,203		(9)		35,194		1,927		(286)
Customer Strategy Services			15,127		-		15,127		482		1,184
	Total	$	305,909	$	(9)	$	305,900	$	13,893	$	21,323
Three Months Ended September 30, 2013
			Gross Revenue		Intersegment Sales		Net Revenue		Depreciation & Amortization		Income (Loss) from Operations
Customer Management Services		$	217,347	$	(312)	$	217,035	$	8,322	$	17,944
Customer Growth Services			25,893		-		25,893		1,148		588
Customer Technology Services			40,712		(63)		40,649		1,538		5,165
Customer Strategy Services			13,418		-		13,418		455		2,264
	Total	$	297,370	$	(375)	$	296,995	$	11,463	$	25,961
Nine Months Ended September 30, 2014
			Gross Revenue		Intersegment Sales		Net Revenue		Depreciation & Amortization		Income (Loss) from Operations
Customer Management Services		$	673,421	$	-	$	673,421	$	29,607	$	55,941
Customer Growth Services			86,545		-		86,545		4,535		5,401
Customer Technology Services			103,735		(28)		103,707		5,650		1,641
Customer Strategy Services			39,938		-		39,938		1,360		3,364
	Total	$	903,639	$	(28)	$	903,611	$	41,152	$	66,347
Nine Months Ended September 30, 2013
			Gross Revenue		Intersegment Sales		Net Revenue		Depreciation & Amortization		Income (Loss) from Operations
Customer Management Services		$	661,201	$	(943)	$	660,258	$	24,716	$	55,140
Customer Growth Services			71,148		-		71,148		2,622		1,244
Customer Technology Services			111,075		(220)		110,855		4,543		13,882
Customer Strategy Services			33,604		(795)		32,809		1,400		(1,632)
	Total	$	877,028	$	(1,958)	$	875,070	$	33,281	$	68,634

			Three Months Ended September 30,				Nine Months Ended September 30,
			2014		2013		2014		2013
Capital Expenditures
	Customer Management Services		$	13,891	$	15,108	$	38,390	$	25,504
	Customer Growth Services			1,270		1,274		2,939		2,025
	Customer Technology Services			2,371		1,642		10,409		3,930
	Customer Strategy Services			219		148		496		373
		Total	$	17,751	$	18,172	$	52,234	$	31,832
			September 30, 2014		December 31, 2013
Total Assets
	Customer Management Services		$	540,868	$	554,015
	Customer Growth Services			85,202		86,416
	Customer Technology Services			168,026		157,040
	Customer Strategy Services			67,213		44,871
		Total	$	861,309	$	842,342
			September 30, 2014		December 31, 2013
Goodwill
	Customer Management Services		$	27,274	$	19,819
	Customer Growth Services			30,395		30,128
	Customer Technology Services			42,709		42,709
	Customer Strategy Services			28,452		10,087
		Total	$	128,830	$	102,743

The following table presents revenue based upon the geographic location where the services are provided (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2014		2013		2014		2013
United States		$	143,854	$	137,205	$	427,919	$	401,294
Philippines			89,963		89,206		262,171		263,365
Latin America			42,725		43,343		128,029		132,673
Europe / Middle East / Africa			20,825		18,929		62,308		52,551
Asia Pacific			7,168		4,504		18,926		13,087
Canada			1,365		3,808		4,258		12,100
	Total Revenue	$	305,900	$	296,995	$	903,611	$	875,070