OPERATING SEGMENTS (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2013 and 2012, were as follows:

	Three Months Ended September 30,				Nine MonthsEnded September 30,
	2013		2012		2013		2012
Total segment revenues:
North America	$	73,480	$	52,767	$	205,613	$	142,333
Europe		51,531		42,505		146,108		123,160
Russia		12,050		11,688		37,901		30,943
Other		3,078		3,115		7,867		11,786
Total segment revenues	$	140,139	$	110,075	$	397,489	$	308,222
Segment operating profit:
North America	$	18,133	$	10,450	$	48,527	$	30,616
Europe		8,049		8,798		24,538		24,461
Russia		391		1,680		2,710		3,498
Other		1,024		1,230		960		4,550
Total segment operating profit	$	27,597	$	22,158	$	76,735	$	63,125

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 September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Total segment revenues	$	140,139		$	110,075		$	397,489		$	308,222
Unallocated revenue		11			3			43			39
Revenues	$	140,150		$	110,078		$	397,532		$	308,261

Total segment operating profit:	$	27,597		$	22,158		$	76,735		$	63,125
Unallocated amounts:
Other revenues		11			3			43			39
Stock-based compensation expense		(3,365	)		(2,046	)		(9,791	)		(5,369	)
Stock charge		—			—			—			(640	)
Non-corporate taxes		(690	)		(391	)		(2,190	)		(1,630	)
Professional fees		(594	)		(493	)		(2,668	)		(1,811	)
Depreciation and amortization		(732	)		(448	)		(2,162	)		(756	)
Bank charges		(261	)		(278	)		(914	)		(823	)
Other corporate expenses		(1,736	)		(1,769	)		(5,752	)		(4,785	)
Income from operations		20,230			16,736			53,301			47,350
Interest and other income, net		846			486			2,245			1,422
Foreign exchange loss		(720	)		(635	)		(2,088	)		(1,949	)
Income before provision for income taxes	$	20,356		$	16,587		$	53,458		$	46,823

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 among the segments. Geographical information about the Company’s long-lived assets based on physical location of the assets is as follows:

	September 30, 2013		December 31, 2012
Belarus	$	39,417	$	40,095
Ukraine		5,359		5,357
Russia		3,462		3,234
United States		2,535		2,048
Hungary		2,498		1,744
Other		791		657
Total	$	54,062	$	53,135

Revenues by Client Location

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
United States	$	62,871	$	50,365	$	180,067	$	145,629
United Kingdom		26,637		25,651		81,416		70,777
Switzerland		13,920		8,496		33,934		21,438
Russia		11,534		10,554		36,464		29,045
Canada		9,162		3,270		22,980		5,816
Germany		5,141		4,325		14,211		11,766
Kazakhstan		2,921		2,967		7,414		6,300
Netherlands		1,895		750		6,665		2,408
Sweden		1,382		1,006		3,986		3,478
Spain		448		387		1,689		1,109
Ukraine		193		181		524		4,556
Other locations		1,860		733		3,048		1,753
Reimbursable expenses and other revenues		2,186		1,393		5,134		4,186
Revenues	$	140,150	$	110,078	$	397,532	$	308,261

Revenues by Service Offering

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Software development	$	93,870	$	73,894	$	267,948	$	206,045
Application testing services		27,773		22,001		78,473		61,297
Application maintenance and support		11,758		8,806		33,245		25,775
Infrastructure services		3,754		3,213		10,625		8,965
Licensing		809		771		2,107		1,993
Reimbursable expenses and other revenues		2,186		1,393		5,134		4,186
Revenues	$	140,150	$	110,078	$	397,532	$	308,261