OPERATING SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2013

Revenues from External Customers and Segment Operating Profit before Unallocated Expenses

Revenues from external customers and segment operating profit, before unallocated expenses, for the North America, Europe, Russia and Other reportable segments for the three and six months ended June 30, 2013 and 2012, were as follows:

	Three Months Ended, June 30,					Six Months Ended, June 30,
	2013			2012		2013			2012
Total segment revenues:
North America	$	69,076		$	46,703	$	132,133		$	89,566
Europe		48,424			40,794		94,577			80,655
Russia		13,498			9,778		25,851			19,255
Other		2,176			6,501		4,789			8,671
Total segment revenues	$	133,174		$	103,776	$	257,350		$	198,147
Segment operating profit:
North America	$	16,213		$	10,440	$	30,394		$	20,166
Europe		8,118			7,003		16,489			15,663
Russia		1,687			1,499		2,319			1,818
Other		(148	)		3,119		(64	)		3,320
Total segment operating profit	$	25,870		$	22,061	$	49,138		$	40,967

Reconciliation of Segment Revenues and Operating Profit to Consolidated Income Before Provision for Income Taxes

Reconciliation of segment revenues and operating profit to consolidated income before provision for income taxes is presented below:

	Three Months Ended, June 30,						Six Months Ended, June 30,
	2013			2012			2013			2012
Total segment revenues	$	133,174		$	103,776		$	257,350		$	198,147
Unallocated revenue		10			24			32			36
Revenues	$	133,184		$	103,800		$	257,382		$	198,183

Total Segment operating profit:	$	25,870		$	22,061		$	49,138		$	40,967
Unallocated amounts:
Other revenues		10			24			32			36
Stock-based compensation expense		(3,850	)		(1,773	)		(6,426	)		(3,323	)
Stock charge		-			-			-			(640	)
Non-corporate taxes		(680	)		(514	)		(1,500	)		(1,239	)
Professional fees		(724	)		(889	)		(2,074	)		(1,318	)
Depreciation and amortization		(715	)		(151	)		(1,430	)		(308	)
Bank charges		(321	)		(296	)		(653	)		(545	)
Other corporate expenses		(2,055	)		(1,632	)		(4,016	)		(3,016	)
Income from operations		17,535			16,830			33,071			30,614
Interest and other income, net		769			460			1,399			936
Foreign exchange loss		(869	)		(1,394	)		(1,368	)		(1,314	)
Income before provision for income taxes	$	17,435		$	15,896		$	33,102		$	30,236

Geographical Information of Long-Lived Assets Based on Physical Location

Management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably amongst the segments. Geographical information about the Company's long-lived assets based on physical location of the assets was as follows:

	As of June 30, 2013		As of December 31, 2012
Belarus	$	40,210	$	40,095
Ukraine		5,711		5,357
Russia		3,688		3,234
United States		2,788		2,048
Hungary		2,342		1,744
Other		661		657
Total	$	55,400	$	53,135

Revenues by Client Location

Information about the Company's revenues by client location is as follows:

	Three Months ended June 30,				Six Months ended June 30,
	2013		2012		2013		2012
United States	$	59,746	$	48,565	$	117,196	$	94,604
United Kingdom		27,711		22,858		54,779		45,786
Russia		13,192		9,393		24,930		18,491
Switzerland		10,734		6,797		20,014		12,942
Canada		8,393		1,763		13,818		2,546
Germany		4,537		3,959		9,070		7,441
Netherlands		2,384		868		4,770		1,658
Kazakhstan		2,028		1,662		4,493		3,333
Sweden		1,349		1,017		2,604		2,472
Spain		609		377		1,241		722
Ukraine		143		4,321		331		4,375
Other locations		848		514		1,188		1,020
Reimbursable expenses and other revenues		1,510		1,706		2,948		2,793
Revenues	$	133,184	$	103,800	$	257,382	$	198,183

Revenues by Service Offering

Information about the Company's revenues by service offering is as follows:

	Three Months ended June 30,				Six Months ended June 30,
	2013		2012		2013		2012


Software development	$	90,298	$	69,268	$	174,078	$	132,151
Application testing services		26,547		20,428		50,700		39,296
Application maintenance and support		10,648		8,728		21,487		16,969
Infrastructure services		3,461		3,148		6,871		5,752
Licensing		720		522		1,298		1,222
Reimbursable expenses and other revenues		1,510		1,706		2,948		2,793
Revenues	$	133,184	$	103,800	$	257,382	$	198,183