Business Segments and Major Customers

6 Months Ended

Jul. 02, 2016

Segment Reporting [Abstract]

Business Segments and Major Customers

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 three reportable segments: the North America segment, the EMEA segment and the Strategic Alliances segment. The North America and EMEA segments are both single reportable, operating segments that encompass the Company’s operational, technology and software consulting services inside of North America and outside of North America, respectively. Both reportable segments offer management consulting, custom developed software, and technical services. The Strategic Alliances reportable segment is a single, reportable segment that includes the Company’s world-wide commercial activities undertaken with third party service or solutions providers.

Management evaluates segment performance based upon income (loss) from operations, excluding share-based compensation (benefits) and depreciation. There were no inter-segment revenues during the thirteen weeks or twenty-six weeks ended July 2, 2016 and July 4, 2015. 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, including, but not limited to, goodwill impairment, share-based compensation expense, depreciation expense, and certain research and development costs. Summarized financial information concerning the Company’s reportable segments is shown in the following table (amounts in thousands):

	North America		EMEA		Strategic Alliances			Not Allocated to Segments			Total
As of and for the twenty-six weeks ended July 2, 2016:
Revenues	$	16,038	$	22,922	$	256		$	—		$	39,216
Income (loss) from operations	3,357		3,062		(134		)	(19,804		)	(13,519		)
Total assets	$	6,031	$	9,466	$	694		$	10,039		$	26,230
As of and for the thirteen weeks ended July 2, 2016:
Revenues	$	7,525	$	11,220	$	154		$	—		$	18,899
Income (loss) from operations	1,603		1,585		(58		)	(15,905		)	(12,775		)
As of the fiscal year ended As of the fiscal year ended January 2, 2016:
Total assets	$	6,831	$	9,725	$	626		$	24,177		$	41,359
As of and for the twenty-six weeks ended July 4, 2015:
Revenues	$	15,390	$	19,343	$	206		$	—		$	34,939
Income (loss) from operations	3,126		2,354		(859		)	(7,857		)	(3,236		)
Total assets	$	5,639	$	6,296	$	2,700		$	24,555		$	39,190
As of and for the thirteen weeks ended July 4, 2015:
Revenues	$	7,472	$	9,318	$	99		$	—		$	16,889
Income (loss) from operations	1,337		282		(507		)	(3,720		)	(2,608		)

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, inventory, 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, 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, 2016		July 4, 2015		July 2, 2016		July 4, 2015
United States	$	7,935	$	7,676	$	16,650	$	15,596
International:
United Kingdom	10,118		8,729		21,078		18,442
Other	846		484		1,488		901
Total	$	18,899	$	16,889	$	39,216	$	34,939

In accordance with the provisions of FASB ASC 280-10, long-lived assets, excluding intangible assets, by geographic area are shown in the following table (amounts in thousands):

	Long-Lived Assets
	July 2, 2016		January 2, 2016
United States	$	2,494	$	2,611
United Kingdom	300		346
France	12		12
Total	$	2,806	$	2,969

Major customers in terms of significance to Cartesian’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 ended July 2, 2016				For the twenty-six weeks ended July 4, 2015
	North America		EMEA		North America		EMEA
Customer A	—		$	8,478	—		$	7,992
Customer B	$	6,474	—		$	6,828	—
Customer C	—		5,407		—		$	9,508
	Revenues
	For the thirteen weeks ended July 2, 2016				For the thirteen weeks ended July 4, 2015
	North America		EMEA		North America		EMEA
Customer A	—		$	4,052	—		$	3,850
Customer B	$	3,201	—		$	3,454	—
Customer C	—		2,402		—		$	4,758

	Accounts Receivable
	As of July 2, 2016		As of July 4, 2015
Customer A	$	2,393	$	3,434
Customer B	$	1,624	$	2,410
Customer C	$	1,584	$	1,754

Revenues from the Company’s ten most significant customers accounted for approximately 79.0% and 90.9% of revenues during the thirteen weeks ended July 2, 2016 and July 4, 2015, respectively, and 81.2% and 90.7% for the twenty-six weeks ended July 2, 2016 and July 4, 2015, respectively.