Investment in Teloworks

12 Months Ended

Dec. 31, 2011

Investment in Teloworks [Abstract]

Investment in Teloworks

Note 3.    Investment in Teloworks

Effective January 1, 2008, Telos owns 100% of Teloworks.  As previously reported, we had recorded all funding to Teloworks as expense in our consolidated statement of operations.  Effective January 1, 2009, we accounted for the investment in Teloworks using the consolidation method.  The effect of not previously consolidating Teloworks amounted to $160,000, which was immaterial to all prior periods and was reflected as an increase in the net income attributable to the Company for the year ended December 31, 2009.

In 2008, Teloworks formed a wholly-owned subsidiary, Teloworks BPO Solutions Philippines, Inc., for the purpose of starting up a business-process outsourcing business in the Philippines, which began operations in the third quarter of 2009 but had not generated significant revenue, and in January 2011 operations were suspended.  The results of this entity, which are immaterial to our consolidated financial statements, have also been consolidated.