Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'INNODATA INC | ' |
Entity Central Index Key | '0000903651 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Trading Symbol | 'INOD | ' |
Entity Common Stock, Shares Outstanding | ' | 25,057,067 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $29,156 | $24,752 |
Accounts receivable, net | 8,501 | 11,876 |
Prepaid expenses and other current assets | 2,129 | 1,907 |
Deferred income taxes | 211 | 45 |
Total current assets | 39,997 | 38,580 |
Property and equipment, net | 6,396 | 6,083 |
Other assets | 3,971 | 3,323 |
Deferred income taxes | 1,240 | 1,336 |
Goodwill | 675 | 675 |
Total assets | 52,279 | 49,997 |
Current liabilities: | ' | ' |
Accounts payable | 1,066 | 898 |
Accrued expenses | 2,278 | 2,780 |
Accrued salaries, wages and related benefits | 4,471 | 4,647 |
Income and other taxes | 856 | 1,003 |
Current portion of long term obligations | 1,060 | 351 |
Deferred income taxes | 75 | 57 |
Total current liabilities | 9,806 | 9,736 |
Deferred income taxes | 190 | 190 |
Long term obligations | 5,254 | 3,747 |
Commitments and contingencies | ' | ' |
Non-controlling interests | -3,851 | -3,649 |
STOCKHOLDERS' EQUITY: | ' | ' |
Serial preferred stock; 5,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $.01 par value; 75,000,000 shares authorized; 26,601,000 shares issued and 25,057,000 outstanding at March 31, 2014 and 26,597,000 shares issued and 25,053,000 outstanding at December 31, 2013 | 266 | 266 |
Additional paid-in capital | 23,031 | 22,963 |
Retained earnings | 21,913 | 21,724 |
Accumulated other comprehensive loss | -42 | -692 |
Stockholders' Equity before Treasury Stock, Total | 45,168 | 44,261 |
Less: treasury stock, 1,544,000 shares at cost | -4,288 | -4,288 |
Total stockholders’ equity | 40,880 | 39,973 |
Total liabilities and stockholders’ equity | $52,279 | $49,997 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Serial preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Serial preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 26,601,000 | 26,597,000 |
Common stock, shares outstanding | 25,057,000 | 25,053,000 |
Treasury stock, shares | 1,544,000 | 1,544,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues | $14,066 | $16,903 |
Operating costs and expenses: | ' | ' |
Direct operating costs | 10,291 | 12,791 |
Selling and administrative expenses | 3,789 | 4,624 |
Interest income, net | -9 | -140 |
Totals | 14,071 | 17,275 |
Loss before income taxes | -5 | -372 |
Provision for (benefit from) income taxes | 101 | -475 |
Net income (loss) | -106 | 103 |
Loss attributable to non-controlling interests | 295 | 213 |
Net income attributable to Innodata Inc. and Subsidiaries | 189 | 316 |
Income per share attributable to Innodata Inc. and Subsidiaries: | ' | ' |
Basic and Diluted (in dollars per share) | $0.01 | $0.01 |
Weighted average shares outstanding: | ' | ' |
Basic (in shares) | 25,038 | 24,880 |
Diluted (in shares) | 25,338 | 25,671 |
Comprehensive income: | ' | ' |
Net income (loss) | -106 | 103 |
Pension liability adjustment, net of taxes | -5 | 18 |
Change in fair value of derivatives, net of taxes of $0 and $5 for the three months ended March 31, 2014 and 2013, respectively | 655 | -9 |
Other comprehensive income | 650 | 9 |
Total comprehensive income | 544 | 112 |
Comprehensive loss attributable to non-controlling interests | 295 | 213 |
Comprehensive income attributable to Innodata Inc. and Subsidiaries | $839 | $325 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME [Parenthetical] (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Total | $0 | $5 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flow from operating activities: | ' | ' |
Net income (loss) | ($106) | $103 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 712 | 891 |
Stock-based compensation | 198 | 278 |
Deferred income taxes | -53 | -923 |
Pension cost | 168 | 224 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 3,375 | 4,077 |
Prepaid expenses and other current assets | 222 | -25 |
Other assets | -67 | -36 |
Accounts payable and accrued expenses | 243 | -484 |
Accrued salaries, wages and related benefits | -176 | -1,015 |
Restricted shares withheld for taxes | -14 | -31 |
Payment of minimum withholding taxes on net settlement of stock options | -23 | 0 |
Income and other taxes | -147 | 74 |
Net cash provided by operating activities | 4,332 | 3,133 |
Cash flow from investing activities: | ' | ' |
Capital expenditures | -767 | -913 |
Sale of investments - other | 0 | -501 |
Net cash used in investing activities | -767 | -1,414 |
Cash flow from financing activities: | ' | ' |
Proceeds from equipment financing | 859 | 0 |
Proceeds from cashless exercise of stock options | 0 | 131 |
Payment of long term obligations | -20 | -128 |
Net cash provided by financing activities | 839 | 3 |
Net increase in cash and cash equivalents | 4,404 | 1,722 |
Cash and cash equivalents, beginning of period | 24,752 | 25,425 |
Cash and cash equivalents, end of period | 29,156 | 27,147 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for income taxes | 233 | 347 |
Vendor financed software licenses acquired | $1,205 | $0 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
In Thousands | ||||||
Balance at Dec. 31, 2012 | $50,509 | $264 | $22,140 | $32,356 | $37 | ($4,288) |
Balance (in shares) at Dec. 31, 2012 | ' | 24,892 | ' | ' | ' | ' |
Net income | 316 | 0 | 0 | 316 | 0 | 0 |
Stock-based compensation | 278 | 0 | 278 | 0 | 0 | 0 |
Stock-based compensation (in shares) | ' | 0 | ' | ' | ' | ' |
Issuance of common stock upon cashless exercise of stock options | 131 | 1 | 130 | 0 | 0 | 0 |
Issuance of common stock upon cashless exercise of stock options (in shares) | ' | 76 | ' | ' | ' | ' |
Restricted shares withheld for taxes | -31 | 0 | -31 | 0 | 0 | 0 |
Restricted shares withheld for taxes (in shares) | ' | -3 | ' | ' | ' | ' |
Acquisition of non-controlling interest | -385 | 0 | -385 | 0 | 0 | 0 |
Pension liability adjustment, net of taxes | 18 | 0 | 0 | 0 | 18 | 0 |
Change in fair value of derivatives, net of taxes | -9 | 0 | 0 | 0 | -9 | 0 |
Balance at Mar. 31, 2013 | 50,827 | 265 | 22,132 | 32,672 | 46 | -4,288 |
Balance (in shares) at Mar. 31, 2013 | ' | 24,965 | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 39,973 | 266 | 22,963 | 21,724 | -692 | -4,288 |
Balance (in shares) at Dec. 31, 2013 | ' | 25,053 | ' | ' | ' | ' |
Net income | 189 | 0 | 0 | 189 | 0 | 0 |
Stock-based compensation | 198 | 0 | 198 | 0 | 0 | 0 |
Stock-based compensation (in shares) | ' | 0 | ' | ' | ' | ' |
Issuance of common stock upon cashless exercise of stock options | -23 | 0 | -23 | 0 | 0 | 0 |
Issuance of common stock upon cashless exercise of stock options (in shares) | ' | 9 | ' | ' | ' | ' |
Restricted shares withheld for taxes | -14 | 0 | -14 | 0 | 0 | 0 |
Restricted shares withheld for taxes (in shares) | ' | -5 | ' | ' | ' | ' |
Acquisition of non-controlling interest | -93 | 0 | -93 | 0 | 0 | 0 |
Pension liability adjustment, net of taxes | -5 | 0 | 0 | 0 | -5 | 0 |
Change in fair value of derivatives, net of taxes | 655 | 0 | 0 | 0 | 655 | 0 |
Balance at Mar. 31, 2014 | $40,880 | $266 | $23,031 | $21,913 | ($42) | ($4,288) |
Balance (in shares) at Mar. 31, 2014 | ' | 25,057 | ' | ' | ' | ' |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Business Description and Accounting Policies [Text Block] | ' | ||
1 | Description of Business and Summary of Significant Accounting Policies | ||
Description of Business- Innodata Inc. and subsidiaries (the “Company”) is a global provider of business process, information technology and professional services that are focused on digital enablement. The Company’s clients comprise several of the world’s leading digital retailers that sell digital content; preeminent publishers and other providers of online business information products; and enterprises in information-intensive industries (such as aerospace, defense, financial services, healthcare, high technology, insurance, and manufacturing) that create and manage large volumes of content to support their products or operations. | |||
The Company operates in two reporting segments: Content Services (CS) and Innodata Advanced Data Solutions (IADS). | |||
The Company’s CS 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 Company formed its IADS segment in mid-2011 to design and develop new capabilities to enable clients in the financial services, insurance, medical and healthcare sectors to improve decision-support through digital technologies. IADS operates through two subsidiaries. Synodex offers a range of services for healthcare, medical and insurance companies, and docGenix provides services to financial services institutions. As of March 31, 2014, Innodata owns 83% of Synodex and 94% of docGenix, both limited liability companies. | |||
Basis of Presentation-The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company as of March 31, 2014, and the results of its operations and comprehensive income, cash flows and stockholders’ equity for the three months ended March 31, 2014 and 2013. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. | |||
These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2013, included in the Company's Annual Report on Form 10-K. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the December 31, 2013 consolidated financial statements. | |||
Principles of Consolidation-The condensed consolidated financial statements include the accounts of Innodata Inc. and its wholly-owned subsidiaries and the Synodex and docGenix limited liability companies that are majority-owned by the Company. The non-controlling interests in the Synodex and docGenix limited liability companies are accounted for in accordance with Financial Accounting Standards Board (FASB) non-controlling interest guidance. All significant intercompany transactions and balances have been eliminated in consolidation. | |||
Use of Estimates-In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include those related to revenue recognition, allowance for doubtful accounts and billing adjustments, long-lived assets, goodwill, valuation of deferred tax assets, valuation of securities underlying stock-based compensation, litigation accruals, pension benefits, valuation of derivative instruments and estimated accruals for various tax exposures. | |||
Recent Accounting Pronouncements- In July 2013, the FASB issued guidance on presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This update clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction, or the tax law of the jurisdiction does not require and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This accounting guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Retroactive application is permitted. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements. | |||
Property_and_equipment
Property and equipment | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
2 | Property and equipment | |||||||
Property and equipment are stated at costs less accumulated depreciation and amortization (in thousands), and consist of the following: | ||||||||
March 31 | December 31, | |||||||
2014 | 2013 | |||||||
Equipment | $ | 17,070 | $ | 17,327 | ||||
Software | 4,641 | 4,045 | ||||||
Furniture and equipment | 2,668 | 2,600 | ||||||
Leasehold improvements | 5,819 | 5,810 | ||||||
Total | 30,198 | 29,782 | ||||||
Less: accumulated depreciation and amortization | -23,802 | -23,699 | ||||||
$ | 6,396 | $ | 6,083 | |||||
Depreciation and amortization expense of property and equipment was approximately $0.7 million and $0.9 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||
Income_Taxes
Income Taxes | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Income Tax Disclosure [Text Block] | ' | ||||
3 | Income Taxes | ||||
The Company had unrecognized tax benefits of approximately $2.2 million at March 31, 2014 and $2.5 million at December 31, 2013. The portion of unrecognized tax benefits relating to interest and penalties was approximately $0.6 million and $0.8 million at March 31, 2014 and December 31, 2013, respectively. The unrecognized tax benefits as of March 31, 2014 and December 31, 2013, if recognized, would have an impact on the Company’s effective tax rate. | |||||
The following presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the three months ended March 31, 2014 (amounts in thousands): | |||||
Unrecognized tax | |||||
benefits | |||||
Balance - January 1, 2014 | $ | 2,533 | |||
Decrease for tax position in prior years | -722 | ||||
Increases for tax position in prior years | 306 | ||||
Foreign currency revaluation | 64 | ||||
Balance – March 31, 2014 | $ | 2,181 | |||
The Company is subject to Federal income tax, as well as income tax in various states and foreign jurisdictions. The Company is no longer subject to examination by Federal tax authorities for years prior to 2006 and by New Jersey tax authorities for years prior to 2012. Various foreign subsidiaries currently have open tax years from 2003 through 2012. | |||||
Pursuant to an income tax audit by the Indian Bureau of Taxation in March 2006, one of the Company’s Indian subsidiaries received a tax assessment approximating $272,000, including interest, through March 31, 2014, for the fiscal tax year ended March 31, 2003. Management disagreed with the basis of the tax assessment and filed an appeal with the Appeal Officer against the assessment. In October 2010, the matter was resolved with a judgment in the Company’s favor. Under the Indian Income Tax Act, however, the income tax assessing officer has the right to appeal against the judgment passed by the Appeal Officer. In December 2010, the income tax assessing officer exercised this right, against which the Company has filed an application to defend the case, and the Company intends to contest it vigorously. The Indian Bureau of Taxation has also completed an audit of the Company’s Indian subsidiary’s income tax return for the fiscal tax year ended March 31, 2004. The ultimate outcome was favorable, and there was no tax assessment imposed for the fiscal tax year ended March 31, 2004. In 2008 and 2009, the Indian subsidiary received a final tax assessment for the fiscal years ended March 31, 2005 and 2006 from the Indian Bureau of Taxation. The tax assessment amounted to $295,000 and $304,000, including interest through March 31, 2014, for the fiscal years ended March 31, 2005 and 2006, respectively. Management disagrees with the basis of these tax assessments, has filed an appeal against the assessments and is contesting them vigorously. In January 2012, the Indian subsidiary received a final tax assessment of approximately $1.0 million, including interest, for the fiscal year ended March 31, 2008, from the Indian Bureau of Taxation. Management disagrees with the basis of this tax assessment, and has filed an appeal against it. Due to this assessment, the Company recorded a tax provision amounting to $477,000 including interest through March 31, 2014. Based on recent experience and the current regulatory environment, management believes that the tax provision of $477,000 including interest is adequate. In February 2014, the Indian Bureau of Taxation has also completed an audit of the Company’s Indian subsidiary’s income tax return for the fiscal tax year ended March 31, 2009. The ultimate outcome was favorable, and there was no tax assessment imposed for the fiscal tax year ended March 31, 2009. The Company had previously recorded a tax provision amounting to $722,000 including interest for the fiscal tax year ended March 31, 2009. As the ultimate outcome was favorable, the Company reversed this amount in the first quarter of 2014. The Indian Bureau of Taxation commenced an audit of this subsidiary’s income tax return for the fiscal year ended March 31, 2010 and 2011. The ultimate outcome cannot be determined at this time. As the Company is continually subject to tax audits by the Indian Bureau of Taxation, the Company continuously assesses the likelihood of an unfavorable assessment for all fiscal years for which the Company has not been audited, and as of March 31, 2014, the Company recorded a tax provision amounting to $562,000 including interest for such years. | |||||
The Company from time to time is also subject to various other tax proceedings and claims for its Philippines subsidiaries. The Company has recorded a tax provision amounting to $271,000 including interest through March 31, 2014, for several ongoing tax proceedings in the Philippines. Although the ultimate outcome cannot be determined at this time, the Company continues to contest these claims vigorously. | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies Disclosure [Text Block] | ' | |
4 | Commitments and Contingencies | |
Line of Credit - The Company has a $15.0 million uncommitted bank line that expires in June 2014 which provides that at the bank’s discretion the Company may on a secured basis borrow amounts equal to up to 80% of the Company’s eligible accounts receivable at the bank’s alternate base interest rate plus 0.5% or LIBOR plus 2.5%. The Company has never made any borrowings under this line. In February 2014, the bank advised the Company that it did not intend to make any advances or extensions of credit or other financial accommodations under the line, and that it would not consider permitting advances in the future unless and until it has received from the Company designated financial and business information, all in form and substance satisfactory to the bank. | ||
Litigation - In 2008, the Supreme Court of the Republic of the Philippines refused to review a decision of the Court of Appeals in Manila against a Philippines subsidiary of the Company that is inactive and has no material assets, and purportedly also against Innodata Inc., that orders the reinstatement of certain former employees of the subsidiary to their former positions and also orders the payment of back wages and benefits that aggregate approximately $8.0 million. Based on consultation with legal counsel, the Company believes that recovery against the Company is unlikely. | ||
The Company is also subject to various legal proceedings and claims which arise in the ordinary course of business. | ||
While management currently believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s financial position or overall trends in results of operations, litigation is subject to inherent uncertainties. Substantial recovery against the Company in the above-referenced Philippines action could have a material adverse impact on the Company, and unfavorable rulings or recoveries in the other proceedings could have a material adverse impact on the operating results of the period in which the ruling or recovery occurs. In addition, the Company’s estimate of potential impact on the Company’s financial position or overall results of operations for the above legal proceedings could change in the future. | ||
The Company’s legal reserves related to legal proceedings and claims are based on a determination of whether or not a loss is probable. The Company reviews outstanding proceedings and claims with external counsel to assess probability and estimates of loss. The reserves are adjusted if necessary. While the Company intends to defend these matters vigorously, adverse outcomes that it estimates could reach approximately $250,000 in the aggregate beyond recorded amounts are reasonably possible. If circumstances change, the Company may be required to record adjustments that could be material to its reported financial condition and results of operations. | ||
Stock_Options
Stock Options | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||||||
5 | Stock Options | |||||||||||
The Company adopted, with stockholder approval, the Innodata Inc. 2013 Stock Plan (the “2013 Plan”). The maximum number of shares of common stock that may be delivered, purchased or used for reference purposes with respect to awards granted under the 2013 Plan is 1,041,096 shares, plus any shares subject to an award or portion of any award under the Innodata Isogen, Inc. 2009 Stock Plan, as amended and restated (the “Prior Plan”) that were outstanding as of June 4, 2013 that expire or terminate unexercised, become unexercisable or are forfeited or otherwise terminated, surrendered or canceled as to any shares without the delivery of shares of stock or other consideration. Shares of stock subject to options or stock appreciation rights (“SARs”) granted under the 2013 Plan count against the share reserve as one share for every one share subject to such option or SAR and shares subject to any other type of award granted under the 2013 Plan count against the share reserve as two shares for every one share subject to such award. If any award, or portion of an award, under the 2013 Plan expires or terminates unexercised, becomes unexercisable or is forfeited or otherwise terminated, surrendered or canceled as to any shares without the delivery of shares of stock or other consideration, the shares subject to such award will thereafter be available for further awards under the 2013 Plan as provided in the next sentence. Shares of stock that again become available for awards pursuant to the expiration, termination, forfeiture or cancellation of any award (other than an option or SAR) granted under the 2013 Plan, or of any award (other than an option or SAR) granted after March 31, 2011 under the Prior Plan, will be added back as two shares for every one share subject to such award or Prior Plan award. All other awards under the 2013 Plan and all other awards under the Prior Plan will be added back as one share for every one share subject to such award or Prior Plan award. The number of shares used for reference purposes in connection with these awards will be considered "delivered" for purposes of computing the maximum number of shares that may be delivered under the Plan. | ||||||||||||
A summary of option activity under the Company’s stock option plans as of March 31, 2014, and changes during the period then ended, is presented below: | ||||||||||||
Weighted- | Weighted-Average | |||||||||||
Number of | Average | Remaining Contractual | Aggregate | |||||||||
Options | Exercise Price | Term (years) | Intrinsic Value | |||||||||
Outstanding at January 1, 2014 | 3,048,069 | $ | 2.99 | |||||||||
Granted | 100,000 | 3.21 | ||||||||||
Exercised | -154,000 | 2.59 | ||||||||||
Forfeited/Expired | -78,239 | 2.76 | ||||||||||
Outstanding at March 31, 2014 | 2,915,830 | $ | 3.03 | 4.59 | $ | 793,777 | ||||||
Exercisable at March 31, 2014 | 843,057 | $ | 3.03 | 2.54 | $ | 466,027 | ||||||
Vested and Expected to Vest at March 31, 2014 | 2,915,830 | $ | 3.03 | 4.59 | $ | 793,777 | ||||||
The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average fair values of the options granted and weighted average assumptions are as follows: | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Weighted average fair value of options granted | $ | 1.55 | $ | 1.86 | ||||||||
Risk-free interest rate | 1.53 | % | 0.76 | % | ||||||||
Expected life (years) | 5 | 5 | ||||||||||
Expected volatility factor | 54.96 | % | 67 | % | ||||||||
Expected dividends | - | - | ||||||||||
A summary of restricted shares under the Company’s stock plans as of March 31, 2014, and changes during the period then ended, are presented below: | ||||||||||||
Weighted-Average Grant | ||||||||||||
Number of Shares | Date Fair Value | |||||||||||
Unvested at January 1, 2014 | 25,000 | $ | 3.31 | |||||||||
Granted | ||||||||||||
Vested | -10,000 | 4.39 | ||||||||||
Forfeited/Expired | - | - | ||||||||||
Unvested at March 31, 2014 | 15,000 | $ | 2.59 | |||||||||
The total compensation cost related to non-vested stock awards not yet recognized as of March 31, 2014 totaled approximately $1.4 million. The weighted-average period over which these costs will be recognized is twenty-four months. | ||||||||||||
The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands): | ||||||||||||
Three months ended March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Direct operating costs | $ | 69 | $ | 51 | ||||||||
Selling and adminstrative expenses | 129 | 227 | ||||||||||
Total stock-based compensation | $ | 198 | $ | 278 | ||||||||
In March 2014, the Company’s Chairman and CEO (the “CEO”) exercised 154,000 stock options at a total exercise price of $0.4 million. The CEO paid the exercise price by surrendering to the Company 137,065 of the shares of common stock he would have otherwise received on the option exercise. In addition, the CEO surrendered 7,866 shares to the Company in consideration of the payment by the Company on his behalf of $22,891 of the Company’s minimum withholding tax requirement payable in respect of the option exercise. Because the payment value attributable to the surrendered shares upon settlement does not exceed the fair value of the option, no compensation cost was recognized at the date of settlement. In connection with this transaction, the Company issued a net total of 9,069 shares of common stock to the CEO. | ||||||||||||
Long_term_obligations
Long term obligations | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Long Term Obligations [Abstract] | ' | |||||||
Debt Disclosure [Text Block] | ' | |||||||
6 | Long term obligations | |||||||
Total long-term obligations as of March 31, 2014 and December 31, 2013 consist of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Vendor obligations | ||||||||
Capital lease obligations (3) | $ | 874 | $ | 17 | ||||
Deferred lease payments (2) | 792 | 764 | ||||||
Microsoft licenses (1) | 1,205 | - | ||||||
Pension obligations | ||||||||
Accrued pension liability | 3,443 | 3,317 | ||||||
6,314 | 4,098 | |||||||
Less: Current portion of long term obligations | 1,060 | 351 | ||||||
Totals | $ | 5,254 | $ | 3,747 | ||||
(1) In March 2014, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2017. Pursuant to this agreement, the Company is obligated to pay approximately $0.4 million annually over the term of the agreement. The total cost, net of deferred interest (in thousands), was allocated to the following asset accounts in 2014: | ||||||||
Prepaid expenses and other current assets | $ | 356 | ||||||
Other assets | 713 | |||||||
Property and equipment | 136 | |||||||
$ | 1,205 | |||||||
(2) Deferred lease payment represents the effect of straight-lining lease payments over the contractual lease term. | ||||||||
(3) In March 2014 the Company entered into a Master Lease agreement with a financing company involving certain equipment. Under the terms of the contract the Company leased the equipment for a period of 36 months at an effective interest rate of approximately 6% and had the option to purchase the equipment at a nominal amount at the end of the lease term. The Company has accounted for this as a financing arrangement, wherein the equipment remains on the Company’s books and will continue to be depreciated. The cash proceeds from the transaction were $0.9 million. | ||||||||
Comprehensive_Income_loss
Comprehensive Income (loss) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||||
7 | Comprehensive Income (loss) | ||||||||||
Accumulated other comprehensive income (loss), as reflected in the condensed consolidated balance sheets, consists of pension liability adjustments, net of taxes, and changes in fair value of derivatives, net of taxes. The components of accumulated other comprehensive income (loss) as of March 31, 2014, and reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2014 and 2013, were as follows (net of tax): | |||||||||||
Accumulated Other | |||||||||||
Pension Liability | Fair Value of | Comprehensive | |||||||||
Adjustment | Derivatives | Income (Loss) | |||||||||
Balance at January 1, 2014 | $ | -116 | $ | -576 | $ | -692 | |||||
Other comprehensive income (loss) before reclassifications, net of taxes | -15 | 270 | 255 | ||||||||
Total other comprehensive income (loss) before reclassifications, net of taxes | -131 | -306 | -437 | ||||||||
Net amount reclassified to earnings | 10 | 385 | 395 | ||||||||
Balance at March 31, 2014 | $ | -121 | $ | 79 | $ | -42 | |||||
Accumulated Other | |||||||||||
Pension Liability | Fair Value of | Comprehensive | |||||||||
Adjustment | Derivatives | Income (Loss) | |||||||||
Balance at January 1, 2013 | $ | -43 | $ | 80 | $ | 37 | |||||
Other comprehensive income (loss) before reclassifications, net of taxes | - | -317 | -317 | ||||||||
Total other comprehensive income (loss) before reclassifications, net of taxes | -43 | -237 | -280 | ||||||||
Net amount reclassified to earnings | 18 | 308 | 326 | ||||||||
Balance at March 31, 2014 | $ | -25 | $ | 71 | $ | 46 | |||||
All reclassifications out of accumulated other comprehensive income (loss) had an impact on direct operating costs in the condensed consolidated statement of operations and comprehensive income. | |||||||||||
Segment_Reporting_and_Concentr
Segment Reporting and Concentrations | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||
8 | Segment Reporting and Concentrations | |||||||
The Company’s operations are classified into two reportable segments: Content Services (CS) and Innodata Advanced Data Solutions (IADS). | ||||||||
The CS 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. | ||||||||
In the second quarter of 2011, the Company launched its IADS segment to perform 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. | ||||||||
A significant portion of the Company’s revenues are generated from its production facilities in the Philippines, India, Sri Lanka and Israel. | ||||||||
Revenues from external clients and segment operating profit (loss), and other reportable segment information are as follows (in thousands): | ||||||||
Three Months Ended | Three Months Ended | |||||||
March 31, 2014 | March 31, 2013 | |||||||
Revenues: | ||||||||
Content Services | $ | 13,994 | $ | 16,268 | ||||
IADS | 72 | 635 | ||||||
Total Consolidated | $ | 14,066 | $ | 16,903 | ||||
Loss before provision for income taxes(1): | ||||||||
Content Services | $ | 1,890 | $ | 1,017 | ||||
IADS | -1,895 | -1,389 | ||||||
Total Consolidated | $ | -5 | $ | -372 | ||||
Loss before provision for income taxes(2): | ||||||||
Content Services | $ | 1,421 | $ | 637 | ||||
IADS | -1,426 | -1,009 | ||||||
Total Consolidated | $ | -5 | $ | -372 | ||||
March 31, 2014 | December 31, 2013 | |||||||
Total assets: | ||||||||
Content Services | $ | 51,279 | $ | 48,981 | ||||
IADS | 1,000 | 1,016 | ||||||
Total Consolidated | $ | 52,279 | $ | 49,997 | ||||
(1) Before elimination of any inter-segment profits | ||||||||
(2) After elimination of any inter-segment profits | ||||||||
The following table summarizes revenues by geographic region (determined based upon customer’s domicile) (in thousands): | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
United States | $ | 7,989 | $ | 11,911 | ||||
The Netherlands | 2,631 | 2,057 | ||||||
United Kingdom | 1,893 | 1,851 | ||||||
Other - principally Europe | 1,553 | 1,084 | ||||||
$ | 14,066 | $ | 16,903 | |||||
Long-lived assets as of March 31, 2014 and December 31, 2013, respectively, by geographic region, are comprised of (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
United States | $ | 1,158 | $ | 1,151 | ||||
Philippines | 2,166 | 1,917 | ||||||
India | 2,645 | 2,660 | ||||||
Sri Lanka | 1,066 | 989 | ||||||
Israel | 36 | 41 | ||||||
Total foreign | 5,913 | 5,607 | ||||||
$ | 7,071 | $ | 6,758 | |||||
One client generated approximately 19% and 13% of our total revenues for the three months ended March 31, 2014 and 2013, respectively. One additional client accounted for 12% of our total revenues for the three months ended March 31, 2014 but accounted for less than 10% of our total revenues for the three months ended March 31, 2013. Two other clients accounted for less than 10% of our total revenues for the three months ended March 31, 2014 but accounted for 29% of our total revenues for the three months ended March 31, 2013. No other client accounted for 10% or more of total revenues during these periods. Further, for the three months ended March 31, 2014 and 2013, revenues from non-U.S. clients accounted for 43% and 29%, respectively, of our total revenues. | ||||||||
As of March 31, 2014, approximately 48% of the Company's accounts receivable was from foreign (principally European) clients and 55% of accounts receivable was due from four clients. As of December 31, 2013, approximately 38% of the Company's accounts receivable was from foreign (principally European) clients and 65% of accounts receivable was due from four clients. | ||||||||
Income_Per_Share
Income Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share [Text Block] | ' | |||||||
9 | Income Per Share | |||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands except per share amounts) | ||||||||
Net income attributable to Innodata Inc. and Subsidiaries | $ | 189 | $ | 316 | ||||
Weighted average common shares outstanding | 25,038 | 24,880 | ||||||
Dilutive effect of outstanding options | 300 | 791 | ||||||
Adjusted for dilutive computation | 25,338 | 25,671 | ||||||
Basic income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted income per share is computed by considering the impact of the potential issuance of common shares, using the treasury stock method, on the weighted average number of shares outstanding. For those securities that are not convertible into a class of common stock, the “two-class” method of computing income per share is used. | ||||||||
Options to purchase 1.6 million shares and 0.4 million shares of common stock for the three months ended March 31, 2014 and 2013, respectively, were outstanding but not included in the computation of diluted income per share, because the options exercise price was greater than the average market price of the common shares and, therefore, the effect would have been antidilutive. | ||||||||
Derivatives
Derivatives | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | |||||||||
10 | Derivatives | |||||||||
The Company conducts a large portion of its operations in international markets that subject it to foreign currency fluctuations. The most significant foreign currency exposures occur when revenue and associated accounts receivable are collected in one currency and expenses to generate that revenue are incurred in another currency. The Company’s primary exchange rate exposure relates to payroll, other payroll costs and operating expenses in the Philippines, India, Sri Lanka and Israel. | ||||||||||
To manage its exposure to fluctuations in foreign currency exchange rates, the Company entered into foreign currency forward contracts, authorized under Company policies, with counterparties that were highly rated financial institutions. The Company utilized non-deliverable forward contracts expiring within twelve months to reduce its foreign currency risk. | ||||||||||
The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company does not hold or issue derivatives for trading purposes. All derivatives are recognized at their fair value and classified based on the instrument’s maturity date. The total notional amount for outstanding derivatives as of March 31, 2014 and December 31, 2013 was $15 million and $15.2 million, respectively, which is comprised of cash flow hedges denominated in U.S. dollars. | ||||||||||
The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||
Derivatives | ||||||||||
Balance Sheet Location | Fair Value | |||||||||
2014 | 2013 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Prepaid expenses and | ||||||||||
Foreign currency forward contracts | other current assets | $ | 78 | $ | - | |||||
Foreign currency forward contracts | Accrued expenses | $ | - | $ | 577 | |||||
The effects of foreign currency forward contracts designated as cash flow hedges on the Company’s condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2014 and 2013, respectively, were as follows (in thousands): | ||||||||||
Three months ended | ||||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
Net gain recognized in OCI (1) | $ | 270 | $ | 294 | ||||||
Net loss (gain) reclassified from accumulated OCI into income (2) | $ | -385 | $ | 308 | ||||||
Net gain (loss) recognized in income (3) | $ | — | $ | — | ||||||
(1) Net change in the fair value of the effective portion classified in other comprehensive income ("OCI"). | ||||||||||
(2) Effective portion classified as direct operating costs. | ||||||||||
(3) There were no ineffective portions for the periods presented. | ||||||||||
Financial_Instruments
Financial Instruments | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||
Financial Instruments Disclosure [Text Block] | ' | ||||||||||
11 | Financial Instruments | ||||||||||
The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximated their fair value as of March 31, 2014 and December 31, 2013, because of the relative short maturity of these instruments. | |||||||||||
“Fair Value Measurements and Disclosures” defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | |||||||||||
The accounting standard establishes a fair value hierarchy that prioritizes the inputs used to measure fair value into three levels. The three levels are defined as follows: | |||||||||||
· Level 1: Unadjusted quoted price in active market for identical assets and liabilities. | |||||||||||
· Level 2: Observable inputs other than those included in Level 1. | |||||||||||
· Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. | |||||||||||
The following table sets forth the assets and liabilities as of March 31, 2014 and December 31, 2013 that the Company measured at fair value, on a recurring basis by level, within the fair value hierarchy (in thousands). As required by the standard, assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. | |||||||||||
March 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||
Assets | |||||||||||
Derivatives | $ | — | $ | 78 | $ | — | |||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||
Liabilities | |||||||||||
Derivatives | $ | — | $ | 577 | $ | — | |||||
The Level 2 assets and liabilities contain foreign currency forward contracts. Fair value is determined based on the observable market transactions of spot and forward rates. The fair value of these contracts as of March 31, 2014 is included in prepaid expenses and other current assets and December 31, 2013 is included in accrued expenses in the accompanying condensed consolidated balance sheets. | |||||||||||
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation-The condensed consolidated financial statements for the interim periods included herein are unaudited; however, they contain all adjustments (consisting of only normal recurring adjustments) which, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company as of March 31, 2014, and the results of its operations and comprehensive income, cash flows and stockholders’ equity for the three months ended March 31, 2014 and 2013. The results of operations for the interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. | |
These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2013, included in the Company's Annual Report on Form 10-K. Unless otherwise noted, the accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the December 31, 2013 consolidated financial statements. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Principles of Consolidation-The condensed consolidated financial statements include the accounts of Innodata Inc. and its wholly-owned subsidiaries and the Synodex and docGenix limited liability companies that are majority-owned by the Company. The non-controlling interests in the Synodex and docGenix limited liability companies are accounted for in accordance with Financial Accounting Standards Board (FASB) non-controlling interest guidance. All significant intercompany transactions and balances have been eliminated in consolidation | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates-In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include those related to revenue recognition, allowance for doubtful accounts and billing adjustments, long-lived assets, goodwill, valuation of deferred tax assets, valuation of securities underlying stock-based compensation, litigation accruals, pension benefits, valuation of derivative instruments and estimated accruals for various tax exposures. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent Accounting Pronouncements- In July 2013, the FASB issued guidance on presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This update clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction, or the tax law of the jurisdiction does not require and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This accounting guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Retroactive application is permitted. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements. | |
Property_and_equipment_Tables
Property and equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Property and equipment are stated at costs less accumulated depreciation and amortization (in thousands), and consist of the following: | ||||||||
March 31 | December 31, | |||||||
2014 | 2013 | |||||||
Equipment | $ | 17,070 | $ | 17,327 | ||||
Software | 4,641 | 4,045 | ||||||
Furniture and equipment | 2,668 | 2,600 | ||||||
Leasehold improvements | 5,819 | 5,810 | ||||||
Total | 30,198 | 29,782 | ||||||
Less: accumulated depreciation and amortization | -23,802 | -23,699 | ||||||
$ | 6,396 | $ | 6,083 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | ' | ||||
The following presents a roll-forward of the Company’s unrecognized tax benefits and associated interest for the three months ended March 31, 2014 (amounts in thousands): | |||||
Unrecognized tax | |||||
benefits | |||||
Balance - January 1, 2014 | $ | 2,533 | |||
Decrease for tax position in prior years | -722 | ||||
Increases for tax position in prior years | 306 | ||||
Foreign currency revaluation | 64 | ||||
Balance – March 31, 2014 | $ | 2,181 | |||
Stock_Options_Tables
Stock Options (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||
A summary of option activity under the Company’s stock option plans as of March 31, 2014, and changes during the period then ended, is presented below: | ||||||||||||
Weighted- | Weighted-Average | |||||||||||
Number of | Average | Remaining Contractual | Aggregate | |||||||||
Options | Exercise Price | Term (years) | Intrinsic Value | |||||||||
Outstanding at January 1, 2014 | 3,048,069 | $ | 2.99 | |||||||||
Granted | 100,000 | 3.21 | ||||||||||
Exercised | -154,000 | 2.59 | ||||||||||
Forfeited/Expired | -78,239 | 2.76 | ||||||||||
Outstanding at March 31, 2014 | 2,915,830 | $ | 3.03 | 4.59 | $ | 793,777 | ||||||
Exercisable at March 31, 2014 | 843,057 | $ | 3.03 | 2.54 | $ | 466,027 | ||||||
Vested and Expected to Vest at March 31, 2014 | 2,915,830 | $ | 3.03 | 4.59 | $ | 793,777 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | ' | |||||||||||
The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average fair values of the options granted and weighted average assumptions are as follows: | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Weighted average fair value of options granted | $ | 1.55 | $ | 1.86 | ||||||||
Risk-free interest rate | 1.53 | % | 0.76 | % | ||||||||
Expected life (years) | 5 | 5 | ||||||||||
Expected volatility factor | 54.96 | % | 67 | % | ||||||||
Expected dividends | - | - | ||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | ' | |||||||||||
A summary of restricted shares under the Company’s stock plans as of March 31, 2014, and changes during the period then ended, are presented below: | ||||||||||||
Weighted-Average Grant | ||||||||||||
Number of Shares | Date Fair Value | |||||||||||
Unvested at January 1, 2014 | 25,000 | $ | 3.31 | |||||||||
Granted | ||||||||||||
Vested | -10,000 | 4.39 | ||||||||||
Forfeited/Expired | - | - | ||||||||||
Unvested at March 31, 2014 | 15,000 | $ | 2.59 | |||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | |||||||||||
The stock-based compensation expense related to the Company’s various stock awards was allocated as follows (in thousands): | ||||||||||||
Three months ended March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Direct operating costs | $ | 69 | $ | 51 | ||||||||
Selling and adminstrative expenses | 129 | 227 | ||||||||||
Total stock-based compensation | $ | 198 | $ | 278 | ||||||||
Long_term_obligations_Tables
Long term obligations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Long Term Obligations [Abstract] | ' | |||||||
Schedule of Debt [Table Text Block] | ' | |||||||
Total long-term obligations as of March 31, 2014 and December 31, 2013 consist of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Vendor obligations | ||||||||
Capital lease obligations (3) | $ | 874 | $ | 17 | ||||
Deferred lease payments (2) | 792 | 764 | ||||||
Microsoft licenses (1) | 1,205 | - | ||||||
Pension obligations | ||||||||
Accrued pension liability | 3,443 | 3,317 | ||||||
6,314 | 4,098 | |||||||
Less: Current portion of long term obligations | 1,060 | 351 | ||||||
Totals | $ | 5,254 | $ | 3,747 | ||||
(1) In March 2014, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2017. Pursuant to this agreement, the Company is obligated to pay approximately $0.4 million annually over the term of the agreement. The total cost, net of deferred interest (in thousands), was allocated to the following asset accounts in 2014: | ||||||||
Prepaid expenses and other current assets | $ | 356 | ||||||
Other assets | 713 | |||||||
Property and equipment | 136 | |||||||
$ | 1,205 | |||||||
(2) Deferred lease payment represents the effect of straight-lining lease payments over the contractual lease term. | ||||||||
(3) In March 2014 the Company entered into a Master Lease agreement with a financing company involving certain equipment. Under the terms of the contract the Company leased the equipment for a period of 36 months at an effective interest rate of approximately 6% and had the option to purchase the equipment at a nominal amount at the end of the lease term. The Company has accounted for this as a financing arrangement, wherein the equipment remains on the Company’s books and will continue to be depreciated. The cash proceeds from the transaction were $0.9 million. | ||||||||
Comprehensive_Income_loss_Tabl
Comprehensive Income (loss) (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||
The components of accumulated other comprehensive income (loss) as of March 31, 2014, and reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2014 and 2013, were as follows (net of tax): | |||||||||||
Accumulated Other | |||||||||||
Pension Liability | Fair Value of | Comprehensive | |||||||||
Adjustment | Derivatives | Income (Loss) | |||||||||
Balance at January 1, 2014 | $ | -116 | $ | -576 | $ | -692 | |||||
Other comprehensive income (loss) before reclassifications, net of taxes | -15 | 270 | 255 | ||||||||
Total other comprehensive income (loss) before reclassifications, net of taxes | -131 | -306 | -437 | ||||||||
Net amount reclassified to earnings | 10 | 385 | 395 | ||||||||
Balance at March 31, 2014 | $ | -121 | $ | 79 | $ | -42 | |||||
Accumulated Other | |||||||||||
Pension Liability | Fair Value of | Comprehensive | |||||||||
Adjustment | Derivatives | Income (Loss) | |||||||||
Balance at January 1, 2013 | $ | -43 | $ | 80 | $ | 37 | |||||
Other comprehensive income (loss) before reclassifications, net of taxes | - | -317 | -317 | ||||||||
Total other comprehensive income (loss) before reclassifications, net of taxes | -43 | -237 | -280 | ||||||||
Net amount reclassified to earnings | 18 | 308 | 326 | ||||||||
Balance at March 31, 2014 | $ | -25 | $ | 71 | $ | 46 | |||||
Segment_Reporting_and_Concentr1
Segment Reporting and Concentrations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||
Revenues from external clients and segment operating profit (loss), and other reportable segment information are as follows (in thousands): | ||||||||
Three Months Ended | Three Months Ended | |||||||
March 31, 2014 | March 31, 2013 | |||||||
Revenues: | ||||||||
Content Services | $ | 13,994 | $ | 16,268 | ||||
IADS | 72 | 635 | ||||||
Total Consolidated | $ | 14,066 | $ | 16,903 | ||||
Loss before provision for income taxes(1): | ||||||||
Content Services | $ | 1,890 | $ | 1,017 | ||||
IADS | -1,895 | -1,389 | ||||||
Total Consolidated | $ | -5 | $ | -372 | ||||
Loss before provision for income taxes(2): | ||||||||
Content Services | $ | 1,421 | $ | 637 | ||||
IADS | -1,426 | -1,009 | ||||||
Total Consolidated | $ | -5 | $ | -372 | ||||
March 31, 2014 | December 31, 2013 | |||||||
Total assets: | ||||||||
Content Services | $ | 51,279 | $ | 48,981 | ||||
IADS | 1,000 | 1,016 | ||||||
Total Consolidated | $ | 52,279 | $ | 49,997 | ||||
(1) Before elimination of any inter-segment profits | ||||||||
(2) After elimination of any inter-segment profits | ||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | |||||||
The following table summarizes revenues by geographic region (determined based upon customer’s domicile) (in thousands): | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
United States | $ | 7,989 | $ | 11,911 | ||||
The Netherlands | 2,631 | 2,057 | ||||||
United Kingdom | 1,893 | 1,851 | ||||||
Other - principally Europe | 1,553 | 1,084 | ||||||
$ | 14,066 | $ | 16,903 | |||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | |||||||
Long-lived assets as of March 31, 2014 and December 31, 2013, respectively, by geographic region, are comprised of (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
United States | $ | 1,158 | $ | 1,151 | ||||
Philippines | 2,166 | 1,917 | ||||||
India | 2,645 | 2,660 | ||||||
Sri Lanka | 1,066 | 989 | ||||||
Israel | 36 | 41 | ||||||
Total foreign | 5,913 | 5,607 | ||||||
$ | 7,071 | $ | 6,758 | |||||
Income_Per_Share_Tables
Income Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands except per share amounts) | ||||||||
Net income attributable to Innodata Inc. and Subsidiaries | $ | 189 | $ | 316 | ||||
Weighted average common shares outstanding | 25,038 | 24,880 | ||||||
Dilutive effect of outstanding options | 300 | 791 | ||||||
Adjusted for dilutive computation | 25,338 | 25,671 | ||||||
Derivatives_Tables
Derivatives (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | |||||||||
The following table presents the fair value of derivative instruments included within the condensed consolidated balance sheets as of March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||
Derivatives | ||||||||||
Balance Sheet Location | Fair Value | |||||||||
2014 | 2013 | |||||||||
Derivatives designated as hedging instruments: | ||||||||||
Prepaid expenses and | ||||||||||
Foreign currency forward contracts | other current assets | $ | 78 | $ | - | |||||
Foreign currency forward contracts | Accrued expenses | $ | - | $ | 577 | |||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | ' | |||||||||
The effects of foreign currency forward contracts designated as cash flow hedges on the Company’s condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2014 and 2013, respectively, were as follows (in thousands): | ||||||||||
Three months ended | ||||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
Net gain recognized in OCI (1) | $ | 270 | $ | 294 | ||||||
Net loss (gain) reclassified from accumulated OCI into income (2) | $ | -385 | $ | 308 | ||||||
Net gain (loss) recognized in income (3) | $ | — | $ | — | ||||||
(1) Net change in the fair value of the effective portion classified in other comprehensive income ("OCI"). | ||||||||||
(2) Effective portion classified as direct operating costs. | ||||||||||
(3) There were no ineffective portions for the periods presented. | ||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||
The following table sets forth the assets and liabilities as of March 31, 2014 and December 31, 2013 that the Company measured at fair value, on a recurring basis by level, within the fair value hierarchy (in thousands). As required by the standard, assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. | |||||||||||
March 31, 2014 | Level 1 | Level 2 | Level 3 | ||||||||
Assets | |||||||||||
Derivatives | $ | — | $ | 78 | $ | — | |||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||
Liabilities | |||||||||||
Derivatives | $ | — | $ | 577 | $ | — | |||||
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Details Textual) | Mar. 31, 2014 |
Synodex [Member] | ' |
Description of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Noncontrolling Interest, Ownership Percentage By Parent | 83.00% |
DocGenix [Member] | ' |
Description of Business and Summary of Significant Accounting Policies [Line Items] | ' |
Noncontrolling Interest, Ownership Percentage By Parent | 94.00% |
Property_and_equipment_Details
Property and equipment (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $30,198 | $29,782 |
Less: accumulated depreciation and amortization | -23,802 | -23,699 |
Property, Plant and Equipment, Net | 6,396 | 6,083 |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 17,070 | 17,327 |
Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 4,641 | 4,045 |
Furniture and Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 2,668 | 2,600 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $5,819 | $5,810 |
Property_and_equipment_Details1
Property and equipment (Details Textual) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation, Depletion and Amortization | $712 | $891 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Income Taxes [Line Items] | ' |
Unrecognized tax benefits, Balance at beginning of year | $2,533 |
Unrecognized tax benefits, Decrease for tax position in prior years | -722 |
Unrecognized tax benefits, Increases for tax position in prior years | 306 |
Unrecognized tax benefits, Foreign currency revaluation | 64 |
Unrecognized tax benefits, Balance at end of year | $2,181 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2009 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
Income Tax Examination, Penalties and Interest Accrued | $600,000 | ' | ' | $800,000 |
Income Tax Expense (Benefit) | 101,000 | -475,000 | ' | ' |
Indian Bureau Of Taxation [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Tax Adjustments, Settlements, and Unusual Provisions | 477,000 | ' | ' | ' |
Additional Foreign Income Tax Expense Benefit Continuing Operations | 562,000 | ' | ' | ' |
Income Tax Expense (Benefit) | ' | ' | 722,000 | ' |
Indian Bureau Of Taxation [Member] | Fiscal Tax Year Ended March 31, 2003 [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Foreign Income Tax Expense (Benefit), Continuing Operations | 272,000 | ' | ' | ' |
Indian Bureau Of Taxation [Member] | Fiscal Tax Year Ended March 31, 2005 [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Foreign Income Tax Expense (Benefit), Continuing Operations | 295,000 | ' | ' | ' |
Indian Bureau Of Taxation [Member] | Fiscal Tax Year Ended March 31, 2006 [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Foreign Income Tax Expense (Benefit), Continuing Operations | 304,000 | ' | ' | ' |
Indian Bureau Of Taxation [Member] | Fiscal Tax Year Ended March 31, 2008 [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Foreign Income Tax Expense (Benefit), Continuing Operations | 1,000,000 | ' | ' | ' |
Philippine Bureau Of Taxation [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Income Tax Expense (Benefit) | $271,000 | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies [Line Items] | ' |
Line of Credit Facility, Amount Outstanding | $15,000,000 |
Line Of Credit Facility, Maximum Borrowing Percentage | 80.00% |
Line of Credit Facility, Interest Rate Description | 'at the bank’s alternate base interest rate plus 0.5% or LIBOR plus 2.5% |
Estimated Litigation Liability | 8,000,000 |
Litigation Settlement, Expense | $250,000 |
Stock_Options_Details
Stock Options (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Options, Outstanding at January 1, 2014 (in shares) | 3,048,069 |
Number of Options, Granted (in shares) | 100,000 |
Number of Options, Exercised (in shares) | -154,000 |
Number of Options, Forfeited/Expired (in shares) | -78,239 |
Number of Options, Outstanding at March 31, 2014 (in shares) | 2,915,830 |
Number of Options, Exercisable at March 31, 2014 (in shares) | 843,057 |
Number of Options, Vested and Expected to Vest at March 31, 2014 (in shares) | 2,915,830 |
Weighted - Average Exercise Price, Outstanding at January 1, 2014 (in dollars per share) | $2.99 |
Weighted - Average Exercise Price, Granted (in dollars per shares) | $3.21 |
Weighted - Average Exercise Price, Exercised (in dollars per share) | $2.59 |
Weighted - Average Exercise Price, Forfeited/Expired (in dollars per share) | $2.76 |
Weighted - Average Exercise Price, Outstanding at March 31, 2014 (in dollars per share) | $3.03 |
Weighted - Average Exercise Price, Exercisable at March 31, 2014 (in dollars per share) | $3.03 |
Weighted - Average Exercise Price, Vested and Expected to Vest at March 31, 2014 (in dollars per share) | $3.03 |
Weighted - Average Remaining Contractual Term, Outstanding at March 31, 2014 (in years) | '4 years 7 months 2 days |
Weighted - Average Remaining Contractual Term, Exercisable at March 31, 2014 (in years) | '2 years 6 months 14 days |
Weighted - Average Remaining Contractual Term, Vested and Expected to Vest at March 31, 2014 (in years) | '4 years 7 months 2 days |
Aggregate Intrinsic Value, Outstanding at March 31, 2014 | $793,777 |
Aggregate Intrinsic Value, Exercisable at March 31, 2014 | 466,027 |
Aggregate Intrinsic Value, Vested and Expected to Vest at March 31, 2014 | $793,777 |
Stock_Options_Details_1
Stock Options (Details 1) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average fair value of options granted (in dollars per share) | $1.55 | $1.86 |
Risk-free interest rate | 1.53% | 0.76% |
Expected life (years) | '5 years | '5 years |
Expected volatility factor | 54.96% | 67.00% |
Expected dividends | 0.00% | 0.00% |
Stock_Options_Details_2
Stock Options (Details 2) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Unvested at January 1, 2014 (in shares) | 25,000 |
Number of Shares, Granted (in shares) | ' |
Number of Shares, Vested (in shares) | -10,000 |
Number of Shares, Forfeited/Expired (in shares) | 0 |
Number of Shares, Unvested at March 31, 2014 (in shares) | 15,000 |
Weighted-Average Grant Date Fair Value, Unvested at January 1, 2014 (in dollars per share) | $3.31 |
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | ' |
Weighted-Average Grant Date Fair Value, Vested (in dollars per share) | $4.39 |
Weighted-Average Grant Date Fair Value, Forfeited/Expired (in dollars per share) | $0 |
Weighted-Average Grant Date Fair Value, Unvested at March 31, 2014 (in dollars per share) | $2.59 |
Stock_Options_Details_3
Stock Options (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Allocated Share-based Compensation Expense | $198 | $278 |
Cost of Sales [Member] | ' | ' |
Allocated Share-based Compensation Expense | 69 | 51 |
Selling and Marketing Expense [Member] | ' | ' |
Allocated Share-based Compensation Expense | $129 | $227 |
Stock_Options_Details_Textual
Stock Options (Details Textual) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 1,041,096 |
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized | $1,400,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '24 months |
Stock Issued During Period Shares Stock Options Exercised | 154,000 |
Chief Executive Officer [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period, Total Intrinsic Value | 400,000 |
Stock Issued During Period Shares Stock Options Exercised | 154,000 |
Stock Issued During Period Value Stock Options Exercised1 | $9,069 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 137,065 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Intrinsic Value | $22,891 |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Forfeitures In Period | 7,866 |
Long_term_obligations_Details
Long term obligations (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Vendor obligations | ' | ' | ||
Capital lease obligations | $874 | [1] | $17 | [1] |
Deferred lease payments | 792 | [2] | 764 | [2] |
Microsoft licenses | 1,205 | [3] | 0 | [3] |
Pension obligations | ' | ' | ||
Accrued pension liability | 3,443 | 3,317 | ||
Long-term Debt | 6,314 | 4,098 | ||
Less: Current portion of long term obligations | 1,060 | 351 | ||
Totals | $5,254 | $3,747 | ||
[1] | In March 2014 the Company entered into a Master Lease agreement with a financing company involving certain equipment. Under the terms of the contract the Company leased the equipment for a period of 36 months at an effective interest rate of approximately 6% and had the option to purchase the equipment at a nominal amount at the end of the lease term. The Company has accounted for this as a financing arrangement, wherein the equipment remains on the Company’s books and will continue to be depreciated. The cash proceeds from the transaction were $0.9 million. | |||
[2] | Deferred lease payment represents the effect of straight-lining lease payments over the contractual lease term. | |||
[3] | In March 2014, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2017. Pursuant to this agreement, the Company is obligated to pay approximately $0.4 million annually over the term of the agreement. The total cost, net of deferred interest (in thousands), was allocated to the following asset accounts in 2014: Prepaid expenses and other current assets $ 356 Other assets 713 Property and equipment 136 $ 1,205 |
Long_term_obligations_Details_
Long term obligations (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ||
Microsoft Licenses Obligations | $1,205 | [1] | $0 | [1] |
Other Assets [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Microsoft Licenses Obligations | 713 | ' | ||
Prepaid Expenses and Other Current Assets [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Microsoft Licenses Obligations | 356 | ' | ||
Property, Plant and Equipment [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Microsoft Licenses Obligations | $136 | ' | ||
[1] | In March 2014, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2017. Pursuant to this agreement, the Company is obligated to pay approximately $0.4 million annually over the term of the agreement. The total cost, net of deferred interest (in thousands), was allocated to the following asset accounts in 2014: Prepaid expenses and other current assets $ 356 Other assets 713 Property and equipment 136 $ 1,205 |
Long_term_obligations_Details_1
Long term obligations (Details Textual) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' |
Proceeds from Long-term Capital Lease Obligations | $859,000 | $0 |
Vendor Agreement [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
License Costs | 400,000 | ' |
Master Lease Agreement [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Capital Lease Obligations Lease Period | '36 months | ' |
Capital Lease Obligations Effective Interest Rate | 6.00% | ' |
Proceeds from Long-term Capital Lease Obligations | $900,000 | ' |
Comprehensive_Income_loss_Deta
Comprehensive Income (loss) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Pension Liability Adjustment, Balance at Beginning of the Period | ($116) | ($43) |
Pension Liability Adjustment, Other comprehensive income (loss): | ' | ' |
Pension Liability Adjustment, Net change from periodic revaluations, net of taxes | -15 | 0 |
Pension Liability Adjustment, Total other comprehensive income (loss) before reclassifications, net of taxes | -131 | -43 |
Pension Liability Adjustment, Net amount reclassified to earnings | 10 | 18 |
Pension Liability Adjustment, Balance at End of the Period | -121 | -25 |
Fair Value of Derivatives, Balance at Beginning of the Period | -576 | 80 |
Fair Value of Derivatives, Other comprehensive income (loss): | ' | ' |
Fair Value of Derivatives, Net change from periodic revaluations, net of taxes | 270 | -317 |
Fair Value of Derivatives, Total other comprehensive income (loss) before reclassifications, net of taxes | -306 | -237 |
Fair Value of Derivatives, Net amount reclassified to earnings | 385 | 308 |
Fair Value of Derivatives, Balance at End of the Period | 79 | 71 |
Accumulated Other Comprehensive Income (loss), Balance at Beginning of the period | -692 | 37 |
Accumulated Other Comprehensive Income (loss), Other comprehensive income (loss): | ' | ' |
Accumulated Other Comprehensive Income (loss), Net change from periodic revaluations, net of taxes | 255 | -317 |
Accumulated Other Comprehensive Income (loss), Total other comprehensive income (loss) before reclassifications, net of taxes | -437 | -280 |
Accumulated Other Comprehensive Income (loss), Net amount reclassified to earnings | 395 | 326 |
Accumulated Other Comprehensive Income (loss), Balance at End of the period | ($42) | $46 |
Segment_Reporting_and_Concentr2
Segment Reporting and Concentrations (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenues | $14,066 | $16,903 | ' | ||
Income (loss) before provision for income taxes | -5 | [1] | -372 | [1] | ' |
Assets | 52,279 | ' | 49,997 | ||
Content Services [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenues | 13,994 | 16,268 | ' | ||
Assets | 51,279 | ' | 48,981 | ||
Content Services [Member] | Before Intersegment Eliminations [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Income (loss) before provision for income taxes | 1,890 | [1] | 1,017 | [1] | ' |
Content Services [Member] | After Intersegment Eliminations [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Income (loss) before provision for income taxes | 1,421 | [2] | 637 | [2] | ' |
IADS [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenues | 72 | 635 | ' | ||
Assets | 1,000 | ' | 1,016 | ||
IADS [Member] | Before Intersegment Eliminations [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Income (loss) before provision for income taxes | -1,895 | [1] | -1,389 | [1] | ' |
IADS [Member] | After Intersegment Eliminations [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Income (loss) before provision for income taxes | ($1,426) | [2] | ($1,009) | [2] | ' |
[1] | Before elimination of any inter-segment profits | ||||
[2] | After elimination of any inter-segment profits |
Segment_Reporting_and_Concentr3
Segment Reporting and Concentrations (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | $14,066 | $16,903 |
United States | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 7,989 | 11,911 |
The Netherlands | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 2,631 | 2,057 |
United Kingdom | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | 1,893 | 1,851 |
Other - principally Europe [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenues | $1,553 | $1,084 |
Segment_Reporting_and_Concentr4
Segment Reporting and Concentrations (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long - lived assets | $7,071 | $6,758 |
United States | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long - lived assets | 1,158 | 1,151 |
Philippines | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long - lived assets | 2,166 | 1,917 |
India | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long - lived assets | 2,645 | 2,660 |
Sri Lanka | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long - lived assets | 1,066 | 989 |
Israel | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long - lived assets | 36 | 41 |
Foreign Countries | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long - lived assets | $5,913 | $5,607 |
Segment_Reporting_and_Concentr5
Segment Reporting and Concentrations (Details Textual) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Major Customer [Member] | Major Customer [Member] | Major Customer [Member] | Major Customer [Member] | Foreign Customer [Member] | Foreign Customer [Member] | Foreign Customer [Member] | Foreign Customer [Member] | Major Customer One [Member] | Major Customer Two [Member] | |
Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | 19.00% | 13.00% | 55.00% | 65.00% | 43.00% | 29.00% | 48.00% | 38.00% | 12.00% | 29.00% |
Income_Per_Share_Details
Income Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share Basic and Diluted [Line Items] | ' | ' |
Net income attributable to Innodata Inc. and Subsidiaries (in dollars) | $189 | $316 |
Weighted average common shares outstanding | 25,038 | 24,880 |
Dilutive effect of outstanding options | 300 | 791 |
Adjusted for dilutive computation | 25,338 | 25,671 |
Income_Per_Share_Details_Textu
Income Per Share (Details Textual) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share Basic and Diluted [Line Items] | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 1.6 | 0.4 |
Derivatives_Details
Derivatives (Details) (Foreign currency forward contracts [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued expenses [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Instruments and Hedges, Liabilities | $0 | $577 |
Prepaid expenses and other current assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Instruments and Hedges, Assets | $78 | $0 |
Derivatives_Details_1
Derivatives (Details 1) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Net gain recognized in OCI | $270 | [1] | $294 | [1] |
Net loss (gain) reclassified from accumulated OCI into income | -385 | [2] | 308 | [2] |
Net gain (loss) recognized in income | $0 | [3] | $0 | [3] |
[1] | Net change in the fair value of the effective portion classified in other comprehensive income ("OCI"). | |||
[2] | Effective portion classified as direct operating costs. | |||
[3] | There were no ineffective portions for the periods presented. |
Derivatives_Details_Textual
Derivatives (Details Textual) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | $15 | $15.20 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Assets | ' | ' |
Derivatives | $0 | ' |
Liability | ' | ' |
Derivatives | ' | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Assets | ' | ' |
Derivatives | 78 | ' |
Liability | ' | ' |
Derivatives | ' | 577 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Assets | ' | ' |
Derivatives | 0 | ' |
Liability | ' | ' |
Derivatives | ' | $0 |