SEGMENT REPORTING

3 Months Ended

Mar. 31, 2013

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 18 — 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 used by our Chief Executive Officer to evaluate operating performance and to assess the allocation of our resources.

We classify our businesses into three reportable segments. The Mortgage Services segment provides services that span the mortgage and real estate lifecycle and are typically outsourced by loan servicers, loan originators and investors in single family homes. The Financial Services segment provides collection and customer relationship management services primarily to debt originators and servicers (e.g., credit card, auto lending, retail credit, mortgages) and the utility and insurance industries. The Technology Services segment principally consists of our REALSuiteTM applications as well as our information technology (“IT”) infrastructure services. The REALSuite platform provides a fully integrated set of software applications and technologies that manage the end-to-end lifecycle for residential and commercial mortgage loan servicing including the automated management and payment of a distributed network of vendors. In addition, our Corporate Items and Eliminations segment includes eliminations of transactions between the reporting segments and costs related to corporate support functions including executive, finance, legal, human resources, vendor management, risk and six sigma.

Financial information for our segments is as follows:

	Three months ended March 31, 2013
									Corporate
	Mortgage			Financial			Technology		Items and			Consolidated
(in thousands)	Services			Services			Services		Eliminations			Altisource
Revenue	$	117,448		$	16,336		$	20,231	$	(5,188	)	$	148,827
Cost of revenue	72,369			12,026			17,112		(4,545		)	96,962
Gross profit	45,079			4,310			3,119		(643		)	51,865
Selling, general and administrative expenses	5,458			2,850			1,865		8,507			18,680
Income from operations	39,621			1,460			1,254		(9,150		)	33,185
Other income (expense), net	(173		)	(3		)	4		(2,335		)	(2,507		)
Income before income taxes and non-controlling interests	$	39,448		$	1,457		$	1,258	$	(11,485	)	$	30,678

	Three months ended March 31, 2012
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource
Revenue	$	109,661		$	18,016		$	17,022		$	(5,633	)	$	139,066
Cost of revenue	73,039			12,333			11,466			(5,078		)	91,760
Gross profit	36,622			5,683			5,556			(555		)	47,306
Selling, general and administrative expenses	5,691			3,830			1,849			5,645			17,015
Income from operations	30,931			1,853			3,707			(6,200		)	30,291
Other expense, net	(321		)	(14		)	(11		)	(5		)	(351		)
Income before income taxes and non-controlling interests	$	30,610		$	1,839		$	3,696		$	(6,205	)	$	29,940