Segment reporting and concentrations

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

12. Segment reporting and concentrations

The Company’s operations are classified into three reportable segments: Digital Data Solutions (DDS), Innodata Advanced Data Solutions (IADS) and Media Intelligence Solutions (MIS).

The DDS segment provides solutions to digital retailers, information services companies, publishers and enterprises that have one or more of the following broad business requirements: development of digital content (including e-books); development of new digital information products; and operational support of existing digital information products and systems.

The IADS segment performs advanced data analysis. IADS operates through two subsidiaries: Synodex and docGenix. Synodex offers a range of data analysis services in the healthcare, medical and insurance areas. docGenix provides services to certain financial services institutions.

The Company’s MIS segment operates through its MediaMiser, Bulldog Reporter and the Agility PR Solutions subsidiaries. In December 2016 the Company rebranded the MediaMiser and Agility PR Solutions products under the name Agility PR Solutions. Agility PR Solutions offers self and full-service solutions that address the entire communications life cycle – from identifying influencers, amplifying messages, monitoring coverage, to measuring impact.

A significant portion of the Company’s revenues is generated from its production facilities in the Philippines, India, Sri Lanka, Canada, Germany, United Kingdom and Israel.

Revenues from external clients and segment operating profit (loss), and other reportable segment information are as follows (in thousands):

	For the Years Ended December 31,
	2016		2015		2014
Revenues:
DDS	$	50,639	$	51,721	$	56,794
IADS		4,347		2,111		614
MIS		8,088		4,691		1,668
Total Consolidated	$	63,074	$	58,523	$	59,076
Income (loss) before provision for income taxes(1):
DDS	$	1,137	$	5,225	$	6,356
IADS		(4,664)		(6,176)		(7,572)
MIS		(1,258)		(1,230)		(304)
Total Consolidated	$	(4,785)	$	(2,181)	$	(1,520)
Income (loss) before provision for income taxes(2):
DDS	$	(1,776)	$	2,712	$	4,363
IADS		(1,778)		(3,685)		(5,582)
MIS		(1,231)		(1,208)		(301)
Total Consolidated	$	(4,785)	$	(2,181)	$	(1,520)

	December 31, 2016		December 31, 2015
Total assets:
DDS	$	24,432	$	41,842
IADS		1,282		1,026
MIS		21,874		8,369
Total Consolidated	$	47,588	$	51,237

	December 31, 2016		December 31, 2015
Goodwill:
DDS	$	675	$	675
MIS		2,059		801
Total Consolidated	$	2,734	$	1,476

⁽¹⁾ Before elimination of any inter-segment profits

⁽²⁾ After elimination of any inter-segment profits

Long-lived assets as of December 31, 2016 and 2015 by geographic region are comprised of:

	2016		2015
	(in thousands)
United States	$	4,669	$	1,104
Foreign countries:
Canada		5,085		5,223
United Kingdom		2,376		-
Philippines		1,940		1,580
India		1,520		1,611
Sri Lanka		683		635
Israel		47		31
Germany		2		2
Total foreign		11,653		9,082
Total	$	16,322	$	10,186

Two clients in the DDS segment generated approximately 31%, 33% and 31% of the Company’s total revenues in the fiscal years ended December 31, 2016, 2015 and 2014, respectively. Another client in the DDS segment accounted for less than 10% of the Company’s total revenues for the years ended December 31, 2016 and 2015 but accounted for 10% of the Company’s total revenues for the year ended December 31, 2014. No other client accounted for 10% or more of total revenues during these periods. Further, in the years ended December 31, 2016, 2015 and 2014, revenues from non-US clients accounted for 49%, 51% and 47%, respectively, of the Company's revenues.

 

Revenues for each of the three years in the period ended December 31, 2016 by geographic region (determined based upon client’s domicile), are as follows:

	2016		2015		2014
	(in thousands)
United States	$	32,070	$	28,412	$	31,489
The Netherlands		9,216		9,610		9,870
United Kingdom		8,271		9,070		9,113
Canada		5,962		5,824		3,126
Others - principally Europe		7,555		5,607		5,478
Total	$	63,074	$	58,523	$	59,076

As of December 31, 2016, approximately 73% of the Company's accounts receivable was from foreign (principally European) clients and 52% of accounts receivable was due from three clients. As of December 31, 2015, approximately 62% of the Company's accounts receivable was from foreign (principally European) clients and 68% of accounts receivable was due from four clients. No other client accounts for 10% or more of the receivables as of December 31, 2016 and 2014.