Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 14 — SEGMENT REPORTING

Our business segments are based upon our organizational structure which focuses primarily on the services offered and are consistent with the internal reporting that we use to evaluate operating performance and to assess the allocation of our resources by our Chief Executive Officer.

We classify our businesses into three reportable segments. Mortgage Services consists of mortgage portfolio management services that span the mortgage lifecycle. Financial Services principally consists of unsecured asset recovery and customer relationship management. Technology Services consists of modular, comprehensive integrated technological solutions for loan servicing, vendor management and invoice presentment and payment as well as providing infrastructure support. In addition, our Corporate Items and Eliminations segment includes eliminations of transactions between the reporting segments and this segment also includes costs recognized by us related to corporate support functions such as finance, legal, human resources, six sigma and quality assurances.

In 2011, we reorganized our reporting structure in that certain services that were originally part of the Mortgage Services Segment are now classified as part of Financial Services. Prior periods have been recast to conform with the current year presentation.

Financial information for our segments is as follows:

	Three Months Ended June 30, 2011
									Corporate
	Mortgage		Financial			Technology			Items and			Consolidated
(in thousands)	Services		Services			Services			Eliminations			Altisource
Revenue	$	65,507	$	17,983		$	13,572		$	(3,794	)	$	93,268
Cost of Revenue		43,544		13,574			9,334			(3,355	)		63,097
Gross Profit		21,963		4,409			4,238			(439	)		30,171
Selling, General and Administrative Expenses		2,853		3,502			1,537			6,012			13,904
Income (Loss) from Operations		19,110		907			2,701			(6,451	)		16,267
Other Income (Expense), net		258		(7	)		(12	)		31			270
Income (Loss) Before Income Taxes	$	19,368	$	900		$	2,689		$	(6,420	)	$	16,537
Transactions with Related Parties:
Revenue	$	48,473	$	118		$	5,103		$	—		$	53,694
Selling, General and Administrative Expenses	$	—	$	—		$	—		$	455		$	455

	Six Months Ended June 30, 2011
									Corporate
	Mortgage		Financial			Technology			Items and			Consolidated
(in thousands)	Services		Services			Services			Eliminations			Altisource
Revenue	$	125,214	$	37,476		$	26,288		$	(7,040	)	$	181,938
Cost of Revenue		80,564		27,062			16,779			(6,359	)		118,046
Gross Profit		44,650		10,414			9,509			(681	)		63,892
Selling, General and Administrative Expenses		7,436		7,962			2,733			12,027			30,158
Income (Loss) from Operations		37,214		2,452			6,776			(12,708	)		33,734
Other Expense, net		623		(18	)		(27	)		36			614
Income (Loss) Before Income Taxes	$	37,837	$	2,434		$	6,749		$	(12,672	)	$	34,348
Transactions with Related Parties:
Revenue	$	92,283	$	147		$	10,054		$	—		$	102,484
Selling, General and Administrative Expenses	$	—	$	—		$	—		$	846		$	846

	Three Months Ended June 30, 2010
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource
Revenue	$	42,665		$	19,891		$	12,485		$	(3,693	)	$	71,348
Cost of Revenue		26,912			14,176			6,669			(3,382	)		44,375
Gross Profit		15,753			5,715			5,816			(311	)		26,973
Selling, General and Administrative Expenses		3,484			4,062			1,324			3,606			12,476
Income (Loss) from Operations		12,269			1,653			4,492			(3,917	)		14,497
Other Income (Expense), net		(41	)		(13	)		(9	)		103			40
Income (Loss) Before Income Taxes	$	12,228		$	1,640		$	4,483		$	(3,814	)	$	14,537
Transactions with Related Parties:
Revenue	$	31,222		$	25		$	4,537		$	—		$	35,784
Selling, General and Administrative Expenses	$	—		$	—		$	—		$	264		$	264

	Six Months Ended June 30, 2010
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource
Revenue	$	75,047		$	39,936		$	24,459		$	(7,121	)	$	132,321
Cost of Revenue		48,205			28,702			13,316			(6,494	)		83,729
Gross Profit		26,842			11,234			11,143			(627	)		48,592
Selling, General and Administrative Expenses		5,927			8,162			2,430			8,026			24,545
Income (Loss) from Operations		20,915			3,072			8,713			(8,653	)		24,047
Other Expense, net		(38	)		(29	)		(21	)		56			(32	)
Income (Loss) Before Income Taxes	$	20,877		$	3,043		$	8,692		$	(8,597	)	$	24,015
Transactions with Related Parties:
Revenue	$	55,984		$	76		$	8,975		$	—		$	65,035
Selling, General and Administrative Expenses	$	—		$	—		$	—		$	588		$	588