BUSINESS SEGMENTS, MAJOR CUSTOMERS AND SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK

12 Months Ended

Dec. 31, 2011

Business Segments, Major Customers and Significant Group Concentrations Of Credit Risk [Abstract]

Business Segments, Major Customers and Significant Group Concentrations Of Credit Risk [Text Block]

6. BUSINESS SEGMENTS, MAJOR CUSTOMERS AND SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK

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 (Strategy, North America Cable and Broadband, North America Telecom), 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, technology and software consulting operations 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 fiscal year 2011 were approximately $753,000. There were no inter-segment sales in fiscal year 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 the segments. Summarized financial information concerning the Company's reportable segments is shown in the following table (in thousands):

	North America		EMEA		Not Allocated to Segments			Total
As of and for the fiscal year ended December 31, 2011:
Revenues	$	47,828	$	15,260				$	63,088
Income (loss) from operations		12,479		1,795	$	(18,505	)		(4,231	)
Interest income						63			63
Interest expense						(15	)		(15	)
Income (loss) before income tax provision		12,479		1,795		(18,769	)		(4,495	)
Depreciation and amortization						1,358			1,358
Total assets	$	7,895	$	3,533	$	23,859		$	35,287
As of and for the fiscal year ended January 1, 2011:
Revenues	$	51,220	$	16,023				$	67,243
Income (loss) from operations		12,185		3,043	$	(18,334	)		(3,106	)
Interest income						193			193
Interest expense						(16	)		(16	)
Income (loss) before income tax provision		12,185		3,043		(18,131	)		(2,903	)
Depreciation and amortization						2,769			2,769
Total assets	$	11,124	$	5,406	$	24,565		$	41,095

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, if applicable. 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):

	Revenues				Loss Before Income Tax Provision
	Fiscal Year 2011		Fiscal Year 2010		Fiscal Year 2011			Fiscal Year 2010
United States	$	45,876	$	49,902	$	(3,268	)	$	(2,154	)
International:
United Kingdom		15,351		16,348		(1,094	)		(706	)
Other		1,861		993		(133	)		(43	)
Total	$	63,088	$	67,243	$	(4,495	)	$	(2,903	)

Major customers in terms of significance to TMNG's revenues (i.e. in excess of 10% of revenues) for fiscal years 2011 and 2010 and accounts receivable as of December 31, 2011 and January 1, 2011 were as follows (amounts in thousands):

	Revenues
	Fiscal Year 2011				Fiscal Year 2010
		North America		EMEA		North America		EMEA
Customer A			$	3,800			$	6,840
Customer B	$	17,289			$	17,304
Customer C	$	9,626			$	9,953
Customer D	$	5,876			$	6,502
Customer E	$	5,776	$	236	$	6,946	$	754

	Accounts Receivable
	December 31, 2011		January 1, 2011
Customer A	$	924	$	2,429
Customer B	$	2,916	$	2,948
Customer C	$	1,271	$	1,832
Customer D	$	773	$	694
Customer E	$	731	$	4,241

Revenues from the Company's ten most significant customers accounted for approximately 84% of revenues in both fiscal years 2011 and 2010.

Substantially all of TMNG's receivables are obligations of companies in the communications, media and entertainment industries. The Company generally does not require collateral or other security on its accounts receivable. The credit risk on these accounts is controlled through credit approvals, limits and monitoring procedures. The Company records bad debt expense based on judgment about the anticipated default rate on receivables owed to TMNG at the end of the reporting period. That judgment is based on the Company's uncollected account experience in prior years and the ongoing evaluation of the credit status of TMNG's customers and the communications industry in general.