Segment Reporting

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 17 — 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 September 30, 2011
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource
Revenue	$	82,170		$	17,303		$	14,827		$	(4,507	)	$	109,793
Cost of Revenue		55,106			12,676			9,700			(4,143	)		73,339
Gross Profit		27,064			4,627			5,127			(364	)		36,454
Selling, General and Administrative Expenses		4,227			4,268			756			6,078			15,329
Income (Loss) from Operations		22,837			359			4,371			(6,442	)		21,125
Other Income (Expense), net		(283	)		(9	)		(12	)		(16	)		(320	)
Income (Loss) Before Income Taxes	$	22,554		$	350		$	4,359		$	(6,458	)	$	20,805
Transactions with Related Parties:
Revenue	$	58,200		$	66		$	5,561		$	—		$	63,827
Selling, General and Administrative Expenses	$	—		$	—		$	—		$	506		$	506

	Nine Months Ended September 30, 2011
									Corporate
	Mortgage		Financial			Technology			Items and			Consolidated
(in thousands)	Services		Services			Services			Eliminations			Altisource
Revenue	$	207,384	$	54,779		$	41,115		$	(11,547	)	$	291,731
Cost of Revenue		135,670		39,738			26,479			(10,502	)		191,385
Gross Profit		71,714		15,041			14,636			(1,045	)		100,346
Selling, General and Administrative Expenses		11,663		12,230			3,489			18,105			45,487
Income (Loss) from Operations		60,051		2,811			11,147			(19,150	)		54,859
Other Income (Expense), net		340		(27	)		(39	)		20			294
Income (Loss) Before Income Taxes	$	60,391	$	2,784		$	11,108		$	(19,130	)	$	55,153
Transactions with Related Parties:
Revenue	$	150,483	$	213		$	15,615		$	—		$	166,311
Selling, General and Administrative Expenses	$	—	$	—		$	—		$	1,352		$	1,352

	Three Months Ended September 30, 2010
									Corporate
	Mortgage		Financial			Technology			Items and			Consolidated
(in thousands)	Services		Services			Services			Eliminations			Altisource
Revenue	$	49,523	$	18,939		$	12,963		$	(3,845	)	$	77,580
Cost of Revenue		31,383		13,870			7,239			(3,579	)		48,913
Gross Profit		18,140		5,069			5,724			(266	)		28,667
Selling, General and Administrative Expenses		3,899		4,692			1,610			4,529			14,730
Income (Loss) from Operations		14,241		377			4,114			(4,795	)		13,937
Other Income (Expense), net		687		(9	)		(24	)		44			698
Income (Loss) Before Income Taxes	$	14,928	$	368		$	4,090		$	(4,751	)	$	14,635
Transactions with Related Parties:
Revenue	$	34,765	$	34		$	4,660		$	—		$	39,459
Selling, General and Administrative Expenses	$	—	$	—		$	—		$	223		$	223

	Nine Months Ended September 30, 2010
									Corporate
	Mortgage		Financial			Technology			Items and			Consolidated
(in thousands)	Services		Services			Services			Eliminations			Altisource
Revenue	$	124,570	$	58,875		$	37,422		$	(10,966	)	$	209,901
Cost of Revenue		79,588		42,572			20,555			(10,073	)		132,642
Gross Profit		44,982		16,303			16,867			(893	)		77,259
Selling, General and Administrative Expenses		9,826		12,854			4,040			12,555			39,275
Income (Loss) from Operations		35,156		3,449			12,827			(13,448	)		37,984
Other Income (Expense), net		649		(38	)		(45	)		100			666
Income (Loss) Before Income Taxes	$	35,805	$	3,411		$	12,782		$	(13,348	)	$	38,650
Transactions with Related Parties:
Revenue	$	90,749	$	110		$	13,635		$	—		$	104,494
Selling, General and Administrative Expenses	$	—	$	—		$	—		$	811		$	811