Business Segments and Major Customers

6 Months Ended

Jul. 02, 2011

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

6. Business Segments and Major Customers

 

The Company identifies its segments based on the way management organizes the Company to assess performance and make operating decisions regarding the allocation of resources. In accordance with the criteria in FASB ASC 280 " Segment Reporting ," the Company has concluded it has two reportable segments: the North America segment and the EMEA segment. The North America segment is comprised of three operating segments (North America Cable and Broadband, North America Telecom and Strategy), which are aggregated into one reportable segment based on the similarity of their economic characteristics. The EMEA segment is a single reportable, operating segment that encompasses the Company’s operational, technological and software consulting services outside of North America. Both reportable segments offer management consulting, custom developed software, and technical services.

Management evaluates segment performance based upon income (loss) from operations, excluding share-based compensation (benefits), depreciation and intangibles amortization. Inter-segment revenues during the thirteen and twenty-six weeks ended July 2, 2011 were approximately $680,000, There were no inter-segment revenues in the thirteen or twenty-six weeks ended July 3, 2010. In addition, in its administrative division, entitled “Not Allocated to Segments,” the Company accounts for non-operating activity and the costs of providing corporate and other administrative services to all the segments. Summarized financial information concerning the Company’s reportable segments is shown in the following table (amounts in thousands):

	North America		EMEA		Not Allocated to Segments			Total
As of and for the twenty-six weeks ended July 2, 2011:
Revenues	$	26,309	$	7,761				$	34,070
Income (loss) from operations		6,793		1,210	$	(9,875	)		(1,872	)
Total assets	$	10,453	$	6,223	$	23,381		$	40,057
For the thirteen weeks ended July 2, 2011:
Revenues	$	13,244	$	3,903				$	17,147
Income (loss) from operations		3,712		532	$	(4,932	)	$	(688	)
As of January 1, 2011
Total assets	$	11,124	$	5,406	$	24,565		$	41,095
As of and for the twenty-six weeks ended July 3, 2010:
Revenues	$	26,442	$	7,988				$	34,430
Income (loss) from operations		7,121		1,466	$	(9,938	)		(1,351	)
Total assets	$	9,500	$	5,493	$	27,647		$	42,640
For the thirteen weeks ended July 3, 2010:
Revenues	$	13,336	$	3,635				$	16,971
Income (loss) from operations		3,533		680	$	(4,735	)		(522	)

Segment assets, regularly reviewed by management as part of its overall assessment of the segments’ performance, include both billed and unbilled trade accounts receivable, net of allowances, and certain other assets. Assets not assigned to segments include cash and cash equivalents, current and non-current investments, property and equipment, goodwill and intangible assets and deferred tax assets, excluding deferred tax assets recognized on accounts receivable reserves, which are assigned to their segments.

In accordance with the provisions of FASB ASC 280-10, revenues earned in the United States and internationally based on the location where the services are performed are shown in the following table (amounts in thousands):

	For the Thirteen Weeks Ended				For the Twenty-six Weeks Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
United States	$	12,568	$	12,701	$	25,161	$	25,714
International:
United Kingdom		4,035		4,113		8,120		8,169
Other		544		157		789		547
Total	$	17,147	$	16,971	$	34,070	$	34,430

Major customers in terms of significance to TMNG’s revenues (i.e. in excess of 10% of revenues) and accounts receivable were as follows (amounts in thousands):

	Revenues
	For the twenty-six weeks				For the twenty-six weeks
	ended July 2, 2011				ended July 3, 2010
	North America		EMEA		North America		EMEA
Customer A			$	2,322			$	3,571
Customer B	$	8,646			$	10,240
Customer C	$	5,263			$	5,075
Customer D	$	4,424			$	2,079
Customer E	$	2,762			$	3,484
	Revenues
	For the thirteen weeks				For the thirteen weeks
	ended July 2, 2011				ended July 3, 2010
	North				North
	America		EMEA		America		EMEA
Customer A			$	972			$	1,589
Customer B	$	4,414			$	4,760
Customer C	$	2,849			$	2,596
Customer D	$	1,610			$	1,376
Customer E	$	1,443			$	1,683

	Accounts Receivable
	As of July 2, 2011		As of July 3, 2010
Customer A	$	1,630	$	2,483
Customer B	$	3,180	$	2,332
Customer C	$	2,179	$	1,842
Customer D	$	1,868	$	1,168
Customer E		986	$	1,164

Revenues from the Company’s ten most significant customers accounted for approximately 81.6% and 83.6% of revenues during the thirteen and twenty-six weeks ended July 2, 2011, respectively. Revenues from the Company’s ten most significant customers accounted for approximately 83.6% and 85.5% of revenues during the thirteen and twenty-six weeks ended July 3, 2010.