Business Segments and Major Customers

9 Months Ended

Sep. 29, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

4. 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, technology 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. There were no inter-segment revenues during the thirteen or thirty-nine weeks ended September 29, 2012 while inter-segment revenues during the thirteen and thirty-nine weeks ended October 1, 2011 were approximately $74,000 and $753,000, respectively. 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):

					Not
	North				Allocated to
	America		EMEA		Segments			Total
As of and for the thirty-nine weeks ended September 29, 2012:
Revenues	$	29,806	$	10,271				$	40,077
Income (loss) from operations		8,233		1,563	$	(11,166	)		(1,370	)
Total assets	$	8,750	$	3,912	$	21,058		$	33,720
For the thirteen weeks ended September 29, 2012:
Revenues	$	9,219	$	3,514				$	12,733
Income (loss) from operations		2,616		608	$	(3,053	)		171
As of the fiscal year ended December 31, 2011
Total assets	$	7,895	$	3,533	$	23,859		$	35,287
As of and for the thirty-nine weeks ended October 1, 2011:
Revenues	$	37,782	$	11,760				$	49,542
Income (loss) from operations		9,925		1,507	$	(14,089	)		(2,657	)
Total assets	$	10,765	$	5,487	$	21,061		$	37,313
For the thirteen weeks ended October 1, 2011:
Revenues	$	11,474	$	3,998				$	15,472
Income (loss) from operations		3,132		297	$	(4,214	)		(785	)

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):

	For the Thirteen Weeks				For the Thirty-nine Weeks
	Ended				Ended
	September 29,		October 1,		September 29,		October 1,
	2012		2011		2012		2011
United States	$	8,647	$	11,117	$	28,335	$	36,278
International:
United Kingdom		3,225		3,991		9,553		12,111
Other		861		364		2,189		1,153
Total	$	12,733	$	15,472	$	40,077	$	49,542

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). All major customers are within the North America segment.

	Revenues
	For the thirty-nine		For the thirty-nine
	weeks ended		weeks ended
	September 29, 2012		October 1, 2011
Customer A	$	11,312	$	13,009
Customer B	$	4,850	$	4,282
Customer C	$	4,499	$	7,784
Customer D	$	1,213	$	5,313

	Revenues
	For the thirteen		For the thirteen
	weeks ended		weeks ended
	September 29, 2012		October 1, 2011
Customer A	$	3,331	$	4,363
Customer B	$	1,526	$	1,520
Customer C	$	1,442	$	2,521
Customer D	$	244	$	890

	Accounts Receivable
	As of September 29, 2012		As of October 1, 2011
Customer A	$	2,837	$	3,492
Customer B	$	887	$	670
Customer C	$	1,861	$	3,111
Customer D	$	455	$	1,030

Revenues from the Company’s ten most significant customers accounted for approximately 82.4% and 81.7% of revenues during the thirteen and thirty-nine weeks ended September 29, 2012, respectively. Revenues from the Company’s ten most significant customers accounted for approximately 83.5% and 83.4% of revenues during the thirteen and thirty-nine weeks ended October 1, 2011, respectively.