SEGMENT REPORTING

6 Months Ended

Jun. 30, 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 and mortgage) and the utility and insurance industries. The Technology Services segment principally consists of our REALSuite software applications as well as our information technology 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 June 30, 2013
									Corporate
	Mortgage		Financial			Technology			Items and			Consolidated
(in thousands)	Services		Services			Services			Eliminations			Altisource
Revenue	$	144,210	$	23,072		$	24,783		$	(5,955	)	$	186,110
Cost of revenue	89,078		13,807			19,407			(5,320		)	116,972
Gross profit	55,132		9,265			5,376			(635		)	69,138
Selling, general and administrative expenses	12,590		3,534			3,028			10,676			29,828
Income from operations	42,542		5,731			2,348			(11,311		)	39,310
Other income (expense), net	61		(5		)	(1		)	(4,880		)	(4,825		)
Income before income taxes and non-controlling interests	$	42,603	$	5,726		$	2,347		$	(16,191	)	$	34,485

	Three months ended June 30, 2012
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource
Revenue	$	115,903		$	16,239		$	17,886		$	(5,823	)	$	144,205
Cost of revenue	73,156			11,663			13,214			(5,295		)	92,738
Gross profit	42,747			4,576			4,672			(528		)	51,467
Selling, general and administrative expenses	5,612			3,604			1,819			7,983			19,018
Income from operations	37,135			972			2,853			(8,511		)	32,449
Other expense, net	(246		)	(2		)	(6		)	(67		)	(321		)
Income before income taxes and non-controlling interests	$	36,889		$	970		$	2,847		$	(8,578	)	$	32,128

	Six months ended June 30, 2013
									Corporate
	Mortgage			Financial			Technology		Items and			Consolidated
(in thousands)	Services			Services			Services		Eliminations			Altisource
Revenue	$	261,658		$	39,408		$	45,014	$	(11,143	)	$	334,937
Cost of revenue	161,447			25,833			36,519		(9,865		)	213,934
Gross profit	100,211			13,575			8,495		(1,278		)	121,003
Selling, general and administrative expenses	18,048			6,384			4,893		19,183			48,508
Income from operations	82,163			7,191			3,602		(20,461		)	72,495
Other income (expense), net	(112		)	(8		)	3		(7,215		)	(7,332		)
Income before income taxes and non-controlling interests	$	82,051		$	7,183		$	3,605	$	(27,676	)	$	65,163

	Six months ended June 30, 2012
										Corporate
	Mortgage			Financial			Technology			Items and			Consolidated
(in thousands)	Services			Services			Services			Eliminations			Altisource
Revenue	$	225,564		$	34,255		$	34,908		$	(11,456	)	$	283,271
Cost of revenue	146,195			23,996			24,680			(10,373		)	184,498
Gross profit	79,369			10,259			10,228			(1,083		)	98,773
Selling, general and administrative expenses	11,303			7,434			3,668			13,628			36,033
Income from operations	68,066			2,825			6,560			(14,711		)	62,740
Other expense, net	(567		)	(16		)	(17		)	(72		)	(672		)
Income before income taxes and non-controlling interests	$	67,499		$	2,809		$	6,543		$	(14,783	)	$	62,068

							Corporate
	Mortgage		Financial		Technology		Items and		Consolidated
(in thousands)	Services		Services		Services		Eliminations		Altisource
Total assets:
June 30, 2013	$	316,648	$	56,322	$	113,794	$	156,369	$	643,133
December 31, 2012	132,924		37,782		64,570		193,950		429,226