Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 28, 2013 | Nov. 07, 2013 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'MANAGEMENT NETWORK GROUP INC | ' |
Entity Central Index Key | '0001094814 | ' |
Current Fiscal Year End Date | '--12-28 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'TMNG | ' |
Entity Common Stock, Shares Outstanding | ' | 8,051,382 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 28-Sep-13 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $12,302 | $12,177 |
Accounts receivable, net | 12,267 | 12,762 |
Prepaid and other current assets | 891 | 658 |
Total current assets | 25,460 | 25,597 |
NONCURRENT ASSETS: | ' | ' |
Property and equipment, net | 1,280 | 1,355 |
Goodwill | 8,133 | 8,160 |
Other noncurrent assets | 248 | 204 |
Total Assets | 35,121 | 35,316 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ' | ' |
Trade accounts payable | 1,689 | 975 |
Accrued payroll, bonuses and related expenses | 3,395 | 4,003 |
Deferred revenue | 543 | 605 |
Other accrued liabilities | 1,598 | 1,809 |
Total current liabilities | 7,225 | 7,392 |
NONCURRENT LIABILITIES: | ' | ' |
Deferred income tax liabilities | 531 | 472 |
Other noncurrent liabilities | 382 | 441 |
Total noncurrent liabilities | 913 | 913 |
Commitments and contingencies (Note 6) | ' | ' |
Total stockholders’ equity | 26,983 | 27,011 |
Total Liabilities and Stockholders’ Equity | $35,121 | $35,316 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Revenues | $13,393 | $12,733 | $41,440 | $40,077 |
Cost of services | 8,350 | 7,814 | 25,940 | 25,018 |
Gross Profit | 5,043 | 4,919 | 15,500 | 15,059 |
Selling, general and administrative expenses (includes non-cash share-based compensation expense of $234 and $3 for the thirteen weeks ended September 28, 2013 and September 29, 2012, respectively and $532 and $10 for the thirty-nine weeks ended September 28, 2013 and September 29, 2012, respectively) | 4,994 | 4,748 | 16,023 | 16,429 |
Income (loss) from operations | 49 | 171 | -523 | -1,370 |
Other income | 1 | 1 | 3 | 8 |
Income (loss) before income taxes | 50 | 172 | -520 | -1,362 |
Income tax provision | -20 | -30 | -59 | -90 |
Net income (loss) | 30 | 142 | -579 | -1,452 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 445 | 323 | -3 | 335 |
Comprehensive income (loss) | $475 | $465 | ($582) | ($1,117) |
Net income (loss) per common share | ' | ' | ' | ' |
Basic and diluted (in dollars per share) | $0 | $0.02 | ($0.08) | ($0.20) |
Weighted average shares used in calculation of net income (loss) per common share | ' | ' | ' | ' |
Basic (in shares) | 7,130 | 7,104 | 7,124 | 7,100 |
Diluted (in shares) | 7,216 | 7,107 | 7,124 | 7,100 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) [Parenthetical] (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Share-based Compensation | $234 | $3 | $532 | $10 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($579) | ($1,452) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation | 503 | 589 |
Share-based compensation | 533 | 10 |
Deferred tax expense | 59 | 90 |
Other | -75 | 10 |
Other changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | 547 | -1,058 |
Prepaid and other assets | -275 | 243 |
Trade accounts payable | 678 | -35 |
Deferred revenue | -61 | 110 |
Accrued liabilities | -866 | -976 |
Net cash provided by (used in) operating activities | 464 | -2,469 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Acquisition of property and equipment | -404 | -181 |
Net cash used in investing activities | -404 | -181 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Issuance of common stock through employee stock purchase plan | 22 | 18 |
Net cash provided by financing activities | 22 | 18 |
Effect of exchange rate on cash and cash equivalents | 43 | 74 |
Net increase (decrease) in cash and cash equivalents | 125 | -2,558 |
Cash and cash equivalents, beginning of period | 12,177 | 13,250 |
Cash and cash equivalents, end of period | 12,302 | 10,692 |
Supplemental disclosure of cash flow information: | ' | ' |
Accrued property and equipment additions | 176 | 302 |
Leasehold improvements acquired through lease incentive | $113 | $0 |
Basis_of_Reporting
Basis of Reporting | 9 Months Ended |
Sep. 28, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies [Text Block] | ' |
1. Basis of Reporting | |
The condensed consolidated financial statements and accompanying notes of The Management Network Group, Inc. and its subsidiaries (“TMNG,” “TMNG Global,” “we,” “us,” “our,” or the “Company”) as of September 28, 2013, and for the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012 are unaudited and reflect all normal recurring adjustments which are, in the opinion of management, necessary for the fair presentation of the Company’s condensed consolidated financial position, results of operations, and cash flows as of these dates and for the periods presented. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Consequently, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements nor those normally made in the Company’s Annual Report on Form 10-K. Accordingly, reference should be made to the Company’s annual consolidated financial statements and notes thereto for the fiscal year ended December 29, 2012, included in the Company’s 2012 Annual Report on Form 10-K (“2012 Form 10-K”) for additional disclosures, including a summary of the Company’s accounting policies. The Condensed Consolidated Balance Sheet as of December 29, 2012 has been derived from the audited Consolidated Balance Sheet at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Company has evaluated subsequent events for recognition or disclosure through the date these unaudited consolidated financial statements were issued. | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of operations for the thirteen and thirty-nine weeks ended September 28, 2013 are not necessarily indicative of the results to be expected for the full year ending December 28, 2013. | |
Revenue Recognition - The Company recognizes revenue from time and materials consulting contracts in the period in which its services are performed. In addition to time and materials contracts, the Company's other types of contracts include fixed fee contracts. The Company recognizes revenues on milestone or deliverables-based fixed fee contracts and time and materials contracts not to exceed contract price using the percentage of completion-like method described by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605-35, "Revenue Recognition - Construction-Type and Production-Type Contracts". For fixed fee contracts where services are not based on providing deliverables or achieving milestones, the Company recognizes revenue on a straight-line basis over the period during which such services are expected to be performed. In connection with some fixed fee contracts, the Company may receive payments from customers that exceed revenues up to that point in time. The Company records the excess of receipts from customers over recognized revenue as deferred revenue. Deferred revenue is classified as a current liability to the extent it is expected to be earned within twelve months from the date of the balance sheet. | |
The FASB ASC 605-35 percentage-of-completion-like methodology involves recognizing revenue using the percentage of services completed, on a current cumulative cost to total cost basis, using a reasonably consistent profit margin over the period. Due to the longer term nature of these projects, developing the estimates of costs often requires significant judgment. Factors that must be considered in estimating the progress of work completed and ultimate cost of the projects include, but are not limited to, the availability of labor and labor productivity, the nature and complexity of the work to be performed, and the impact of delayed performance. If changes occur in delivery, productivity or other factors used in developing the estimates of costs or revenues, we revise our cost and revenue estimates, which may result in increases or decreases in revenues and costs, and such revisions are reflected in income in the period in which the facts that give rise to that revision become known. | |
The Company develops, installs and supports customer software in addition to its traditional consulting services. The Company recognizes revenue in connection with its software sales agreements under FASB ASC 985-605 “Software - Revenue Recognition”, utilizing the percentage of completion-like method described in FASB ASC 605-35. These agreements include software right-to-use licenses ("RTU's") and related customization and implementation services. Due to the long-term nature of software implementation and the extensive software customization based on normal customer specific requirements, both the RTU’s and implementation services are treated as a single element for revenue recognition purposes. | |
In addition to the professional services related to the customization and implementation of software, the Company also provides post-contract support ("PCS") services, including technical support and maintenance services. For those contracts that include PCS service arrangements which are not essential to the functionality of the software solution, the Company separates the FASB ASC 605-35 software services and PCS services utilizing the multiple-element arrangement model prescribed by FASB ASC 605-25, "Revenue Recognition - Multiple-Element Arrangements". FASB ASC 605-25 addresses the accounting treatment for an arrangement to provide the delivery or performance of multiple products and/or services where the delivery of a product or system or performance of services may occur at different points in time or over different periods of time. The Company utilizes FASB ASC 605-25 to separate the PCS service elements and allocate total contract consideration to the contract elements based on the relative fair value of those elements utilizing PCS renewal terms as evidence of fair value. Revenues from PCS services are recognized ratably on a straight-line basis over the term of the support and maintenance agreement. | |
Fair Value Measurement - For cash and cash equivalents, current trade receivables and current trade payables, the carrying amounts approximate fair value because of the short maturity of these items. | |
The Company utilizes the methods of fair value measurement as described in FASB ASC 820, “Fair Value Measurements” to value its financial assets and liabilities. As defined in FASB ASC 820, fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, FASB ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: | |
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | |
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to level 3 inputs. | |
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. | |
Managed Services Implementation Revenues and Costs - For long-term managed service agreements, implementation efforts are often necessary to develop the software utilized to deliver the managed service. Costs of such implementation efforts may include internal and external costs for coding or customizing systems and costs for conversion of client data. We may invoice our clients for implementation fees at the go-live date of the underlying software. Lump sum implementation fees received from our clients are initially deferred and recognized on a pro-rata basis as services are provided. Specific, incremental and direct costs of implementation incurred prior to the services going live are deferred pursuant to FASB ASC 605-35-25 and amortized over the period that the related ongoing services revenue is recognized to the extent that the Company believes that the recoverability of the costs from the contract is probable. If a client terminates a managed services arrangement prior to the end of the contract, a loss on the contract may be recorded, if applicable, and any remaining deferred implementation revenues and costs would then be recognized into earnings generally over the remaining service period through the termination date. During the thirty-nine weeks ended September 28, 2013, implementation costs of $270,000 related to managed services contracts were deferred. No implementation costs related to managed services contracts were deferred during the thirteen or thirty-nine weeks ended September 29, 2012. | |
Research and Development and Software Development Costs - During the thirteen and thirty-nine weeks ended September 28, 2013, software development costs of $179,000 and $493,000, respectively, were expensed as incurred. During the thirteen and thirty-nine weeks ended September 29, 2012, software development costs of $80,000 and $420,000, respectively, were expensed as incurred. No software development costs were capitalized during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012. | |
Foreign Currency Transactions and Translation - Cartesian Ltd. and the international operations of Cambridge Strategic Management Group, Inc. conduct business primarily denominated in their respective local currency, which is their functional currency. Assets and liabilities have been translated to U.S. dollars at the period-end exchange rates. Revenues and expenses have been translated at exchange rates which approximate the average of the rates prevailing during each period. Translation adjustments are reported as a separate component of other comprehensive income (loss) in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Accumulated other comprehensive loss resulting from foreign currency translation adjustments totaled $4.0 million as of September 28, 2013 and December 29, 2012, and is included in Total Stockholders’ Equity in the Condensed Consolidated Balance Sheets. Assets and liabilities denominated in other than the functional currency of a subsidiary are re-measured at rates of exchange on the balance sheet date. Resulting gains and losses on foreign currency transactions are included in the Company’s results of operations. Realized and unrealized exchange gains and losses included in the results of operations were not significant during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012. | |
Earnings (Loss) Per Share - The Company calculates and presents earnings (loss) per share using a dual presentation of basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The weighted average number of common shares outstanding excludes treasury shares held by the Company. Diluted earnings (loss) per share is computed in the same manner except that the weighted average number of shares is increased for dilutive securities. | |
In accordance with the provisions of FASB ASC 260, "Earnings per Share," the Company uses the treasury stock method for calculating the dilutive effect of employee stock options and non-vested shares. The employee stock options and non-vested shares will have a dilutive effect under the treasury stock method only when average market value of the underlying Company common stock during the respective period exceeds the assumed proceeds. For share-based payment awards with a performance condition, the Company must first use the guidance on contingently issuable shares in FASB ASC 260-10 to determine whether the awards should be included in the computation of diluted earnings per share for the reporting period. For all non-vested performance-based awards, the Company determines the number of shares, if any, that would be issuable at the end of the reporting period if the end of the reporting period were the end of the contingency period. In applying the treasury stock method, assumed proceeds include the amount, if any, the employee must pay upon exercise, the amount of compensation cost for future services that the Company has not yet recognized, and the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the options and the vesting of non-vested shares. The Company has excluded the effect of 402,593 and 497,888 stock options in the calculation of diluted income per share for the thirteen weeks ended September 28, 2013 and September 29, 2012, respectively, as the effect would have been anti-dilutive. For the thirty-nine weeks ended September 28, 2013 and September 29, 2012, the Company has not included the effect of stock options and non-vested shares in the calculation of diluted loss per share as it reported a net loss for these periods and the effect would have been anti-dilutive. | |
Recent Accounting Pronouncements - In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“FASB ASU 2013-02”). The amendment in this update requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles to be reclassified in its entirety to net income. The provisions of FASB ASU 2013-02 are effective for annual and interim periods beginning after December 15, 2012. The adoption of the provisions of FASB ASU 2013-02 did not have a material impact on the Company's consolidated financial statements. | |
In July 2013, the FASB issued Accounting Standards Update No. 2013-11,Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“FASB ASU 2013-11”). The update requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The provisions of FASB ASU 2013-11 are effective for annual and interim periods beginning after December 15, 2013. The Company does not anticipate that the adoption of the provisions of FASB ASU 2013-11 will have a material impact on the Company's consolidated financial statements. | |
Goodwill_and_LongLived_Assets
Goodwill and Long-Lived Assets | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||||||||
2. Goodwill and Long-Lived Assets | |||||||||||
The changes in the carrying amount of goodwill for the thirty-nine weeks ended September 28, 2013 are as follows (in thousands): | |||||||||||
North | |||||||||||
America | EMEA | Total | |||||||||
Balance as of December 29, 2012 | $ | 3,947 | $ | 4,213 | $ | 8,160 | |||||
Changes in foreign currency exchange rates | - | -27 | -27 | ||||||||
Balance as of September 28, 2013 | $ | 3,947 | $ | 4,186 | $ | 8,133 | |||||
The Company evaluates goodwill for impairment on an annual basis on the last day of the first fiscal month of the fourth quarter and whenever events or circumstances indicate that these assets may be impaired. The Company performs its impairment testing for goodwill in accordance with FASB ASC 350, “Intangibles-Goodwill and Other.” Management determined that there were no events or changes in circumstances during the thirteen or thirty-nine weeks ended September 28, 2013 which indicated that goodwill needed to be tested for impairment during the period. | |||||||||||
The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable in accordance with the provisions of FASB ASC 360, “Property, Plant and Equipment.” Management determined that there were no events or changes in circumstances during the thirteen or thirty-nine weeks ended September 28, 2013 which indicated that long-lived assets needed to be reviewed for impairment during the period. | |||||||||||
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||
3. Share-Based Compensation | ||||||||
The Company issues stock option awards and non-vested share awards under its share-based compensation plans. The key provisions of the Company's share-based compensation plans are described in Note 3 to the Company's consolidated financial statements included in the 2012 Form 10-K. | ||||||||
The Company recognized no income tax benefits related to share-based compensation arrangements during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012. | ||||||||
1998 Equity Incentive Plan | ||||||||
Stock Options | ||||||||
A summary of the option activity under the Company's Amended and Restated 1998 Equity Incentive Plan (“1998 Plan”), as of September 28, 2013 and changes during the thirty-nine weeks then ended is presented below: | ||||||||
Weighted | ||||||||
Average | ||||||||
Exercise | ||||||||
Shares | Price | |||||||
Outstanding at December 29, 2012 | 347,293 | $ | 10.6 | |||||
Forfeited/cancelled | -18,800 | $ | 9.31 | |||||
Outstanding at September 28, 2013 | 328,493 | $ | 10.67 | |||||
Options vested and exercisable at September 28, 2013 | 328,493 | $ | 10.67 | |||||
There were no options granted during the thirty-nine weeks ended September 28, 2013. | ||||||||
Non-vested Shares | ||||||||
Service-Based Non-vested Share Awards - As of September 28, 2013 and December 29, 2012, the Company has 110,000 shares of non-vested stock outstanding that vest solely based on employee service. These shares have a weighted average grant date fair value of $2.26 and cliff vest after a one-year service period beginning on December 17, 2012. | ||||||||
The service-based non-vested share award for the 110,000 shares was valued at the date of grant, based on the closing market price of the Company’s common stock, and is being expensed using the straight-line method over the requisite service period (which is the vesting period of the award). During the thirteen and thirty-nine weeks ended September 28, 2013, the Company recorded $61,000 and $183,000, respectively, of stock-based compensation expense in connection with the service-based non-vested share awards granted in December 2012. As of September 28, 2013, there is an estimated $54,000 of unrecognized stock-based compensation expense, net of estimated forfeitures, related to the service-based non-vested share awards. The unrecognized compensation cost at September 28, 2013 is expected to be recognized over a period of 2.5 months. | ||||||||
Performance-Based Non-vested Share Awards - On April 8, 2013, the Company’s Board of Directors approved an equity incentive program under the 1998 Plan pursuant to which the Board of Directors granted performance-based non-vested share awards for a total of 800,000 shares of Common Stock to various executive officers and employees of the Company. All 800,000 non-vested shares have a grant date fair value of $3.14. The first potential vesting date is the Company's earnings release date for its 2014 first fiscal quarter and each subsequent potential vesting date is each of the Company's quarterly earnings release dates thereafter through the release date for the first quarter of 2017. Shares not vested as of the release date for the first quarter of 2017 are forfeited. Except for termination of employment in certain circumstances following a change of control, the unvested portion of an award is forfeited upon any termination of employment. Under the terms of the awards, vesting is partially accelerated and each award is converted to a time-vested award upon a change of control of the Company. The holders of shares of non-vested share awards have all of the rights of stockholders of the Company, including the right to receive dividends and to vote the shares, until the shares are forfeited to the Company. | ||||||||
Stock-based compensation cost for performance-based non-vested share awards is measured at the grant date based on the fair value of shares expected to be earned at the end of the performance period, based on the closing market price of the Company’s common stock on the date of grant, and is recognized as expense using the straight-line method over the performance period based upon the probable number of shares expected to vest. The Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures. During the thirteen and thirty-nine weeks ended September 28, 2013, the Company recorded $170,000 and $340,000, respectively, of stock-based compensation expense in connection with the performance-based non-vested share awards granted in April 2013. As of September 28, 2013, there is an estimated $2.1 million of unrecognized stock-based compensation expense, net of estimated forfeitures, related to the performance-based non-vested share awards. The unrecognized compensation cost at September 28, 2013 is expected to be recognized over a period of 36 months. | ||||||||
2000 Supplemental Stock Plan | ||||||||
A summary of the option activity under the Company's 2000 Supplemental Stock Plan (the "Supplemental Stock Plan") as of September 28, 2013 and changes during the thirty-nine weeks then ended is presented below: | ||||||||
Weighted | ||||||||
Average | ||||||||
Exercise | ||||||||
Shares | Price | |||||||
Outstanding at December 29, 2012 | 102,000 | $ | 11.44 | |||||
Forfeited/cancelled | -19,400 | $ | 11.88 | |||||
Outstanding at September 28, 2013 | 82,600 | $ | 11.33 | |||||
Options vested and exercisable at September 28, 2013 | 82,600 | $ | 11.33 | |||||
The Supplemental Stock Plan expired on May 23, 2010. No new awards will be issued pursuant to the plan. The outstanding awards issued pursuant to the Supplemental Stock Plan remain subject to the terms of the Supplemental Stock Plan following expiration of the plan. | ||||||||
Business_Segments_and_Major_Cu
Business Segments and Major Customers | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Business Segments And Major Customers [Abstract] | ' | |||||||||||||
Business Segments And Major Customers [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 and thirty-nine weeks ended September 28, 2013 or September 29, 2012. 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 28, 2013: | ||||||||||||||
Revenues | $ | 26,553 | $ | 14,887 | $ | 41,440 | ||||||||
Income (loss) from operations | 6,332 | 3,487 | $ | -10,342 | -523 | |||||||||
Total assets | $ | 6,026 | $ | 6,241 | $ | 22,854 | $ | 35,121 | ||||||
For the thirteen weeks ended September 28, 2013: | ||||||||||||||
Revenues | $ | 8,400 | $ | 4,993 | $ | 13,393 | ||||||||
Income (loss) from operations | 2,076 | 1,184 | $ | -3,211 | 49 | |||||||||
As of the fiscal year ended December 29, 2012 | ||||||||||||||
Total assets | $ | 7,519 | $ | 5,243 | $ | 22,554 | $ | 35,316 | ||||||
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 | |||||||||
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 28, | September 29, | September 28, | September 29, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
United States | $ | 7,818 | $ | 8,647 | $ | 25,338 | $ | 28,335 | ||||||
International: | ||||||||||||||
United Kingdom | 5,246 | 3,225 | 14,609 | 9,553 | ||||||||||
Other | 329 | 861 | 1,493 | 2,189 | ||||||||||
Total | $ | 13,393 | $ | 12,733 | $ | 41,440 | $ | 40,077 | ||||||
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 thirty-nine weeks | For the thirty-nine weeks | |||||||||||||
ended September 28, 2013 | ended September 29, 2012 | |||||||||||||
North | North | |||||||||||||
America | EMEA | America | EMEA | |||||||||||
Customer A | $ | 9,405 | $ | 11,312 | ||||||||||
Customer B | $ | 4,980 | $ | 4,499 | ||||||||||
Customer C | $ | 552 | $ | 6,360 | $ | 24 | $ | 2,637 | ||||||
Customer D | $ | 3,948 | $ | 4,850 | ||||||||||
Revenues | ||||||||||||||
For the thirteen weeks | For the thirteen weeks | |||||||||||||
ended September 28, 2013 | ended September 29, 2012 | |||||||||||||
North | North | |||||||||||||
America | EMEA | America | EMEA | |||||||||||
Customer A | $ | 2,850 | $ | 3,331 | ||||||||||
Customer B | $ | 1,302 | $ | 1,442 | ||||||||||
Customer C | $ | 318 | $ | 2,631 | $ | 15 | $ | 833 | ||||||
Customer D | $ | 1,260 | $ | 1,526 | ||||||||||
Accounts Receivable | ||||||||||||||
As of | As of | |||||||||||||
September 28, | September 29, | |||||||||||||
2013 | 2012 | |||||||||||||
Customer A | $ | 1,903 | $ | 2,837 | ||||||||||
Customer B | $ | 1,163 | $ | 1,861 | ||||||||||
Customer C | $ | 3,659 | $ | 1,018 | ||||||||||
Customer D | $ | 598 | $ | 887 | ||||||||||
Revenues from the Company’s ten most significant customers accounted for 82.8% and 83.5% of revenues during the thirteen and thirty-nine weeks ended September 28, 2013, respectively. 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. | ||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
5. Income Taxes | |
During the thirteen weeks ended September 28, 2013 and September 29, 2012, the Company recorded income tax provisions of $20,000 and $30,000, respectively. During the thirty-nine weeks ended September 28, 2013 and September 29, 2012, the Company recorded income tax provisions of $59,000 and $90,000, respectively. The tax provisions for all periods presented are due to deferred taxes recognized on intangible assets amortized for income tax purposes but not for financial reporting purposes. The Company has reserved all of its domestic and international net deferred tax assets with a valuation allowance as of September 28, 2013 and December 29, 2012 in accordance with the provisions of FASB ASC 740, “Income Taxes," which requires an estimation of the recoverability of the recorded income tax asset balances. As of September 28, 2013, the Company has recorded $31.7 million of valuation allowances attributable to its net deferred tax assets. | |
The Company analyzes its uncertain tax positions pursuant to the provisions of FASB ASC 740 “Income Taxes.” There was no material activity related to the liability for uncertain tax positions during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012, and the Company has determined it does not have any material uncertain tax positions requiring reserves at September 28, 2013. | |
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2000. As of September 28, 2013, the Company has no income tax examinations in process. | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
6. Commitments and Contingencies | |
On January 10, 2012, Richard P. Nespola, the Company’s former chief executive officer, former chairman of the board and a former member of the Company’s Board of Directors, filed an action, Richard P. Nespola v. The Management Network Group, Inc., against the Company with the American Arbitration Association. In the action, Mr. Nespola claimed that the Company breached his employment agreement and an implied covenant of good faith and fair dealing by: (i) improperly deciding not to renew his employment agreement, and (ii) subsequently deciding to terminate his employment for cause. Mr. Nespola also claimed that the Company defamed him but subsequently withdrew that claim. An arbitration hearing on the action occurred in late October 2013. Mr. Nespola seeks in excess of $1.6 million in damages plus attorneys’ fees and costs. The Company has denied Mr. Nespola’s allegations, does not believe the action has any merit, and has defended against it vigorously. The Company is unable to reasonably estimate any possible loss or range of possible loss given the current status of the arbitration and given the inherent uncertainty in predicting an arbitration decision. A decision in this action is expected prior to January 31, 2014. | |
In addition, the Company may become involved in various legal and administrative actions arising in the normal course of business. These could include actions brought by taxing authorities challenging the employment status of consultants utilized by the Company. In addition, future customer bankruptcies could result in additional claims on collected balances for professional services near the bankruptcy filing date. The resolution of any of such actions, claims, or the matters described above may have an impact on the financial results for the period in which they occur. | |
During fiscal year 2012, the Company renewed a purchase agreement, committing to purchase a minimum of $285,000 in computer software over a three year period ending in the first quarter of fiscal year 2015. As of September 28, 2013, the Company has an obligation of $143,000 remaining under this commitment. | |
Basis_of_Reporting_Policies
Basis of Reporting (Policies) | 9 Months Ended |
Sep. 28, 2013 | |
Accounting Policies [Abstract] | ' |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition - The Company recognizes revenue from time and materials consulting contracts in the period in which its services are performed. In addition to time and materials contracts, the Company's other types of contracts include fixed fee contracts. The Company recognizes revenues on milestone or deliverables-based fixed fee contracts and time and materials contracts not to exceed contract price using the percentage of completion-like method described by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605-35, "Revenue Recognition - Construction-Type and Production-Type Contracts". For fixed fee contracts where services are not based on providing deliverables or achieving milestones, the Company recognizes revenue on a straight-line basis over the period during which such services are expected to be performed. In connection with some fixed fee contracts, the Company may receive payments from customers that exceed revenues up to that point in time. The Company records the excess of receipts from customers over recognized revenue as deferred revenue. Deferred revenue is classified as a current liability to the extent it is expected to be earned within twelve months from the date of the balance sheet. | |
The FASB ASC 605-35 percentage-of-completion-like methodology involves recognizing revenue using the percentage of services completed, on a current cumulative cost to total cost basis, using a reasonably consistent profit margin over the period. Due to the longer term nature of these projects, developing the estimates of costs often requires significant judgment. Factors that must be considered in estimating the progress of work completed and ultimate cost of the projects include, but are not limited to, the availability of labor and labor productivity, the nature and complexity of the work to be performed, and the impact of delayed performance. If changes occur in delivery, productivity or other factors used in developing the estimates of costs or revenues, we revise our cost and revenue estimates, which may result in increases or decreases in revenues and costs, and such revisions are reflected in income in the period in which the facts that give rise to that revision become known. | |
The Company develops, installs and supports customer software in addition to its traditional consulting services. The Company recognizes revenue in connection with its software sales agreements under FASB ASC 985-605 “Software - Revenue Recognition”, utilizing the percentage of completion-like method described in FASB ASC 605-35. These agreements include software right-to-use licenses ("RTU's") and related customization and implementation services. Due to the long-term nature of software implementation and the extensive software customization based on normal customer specific requirements, both the RTU’s and implementation services are treated as a single element for revenue recognition purposes. | |
In addition to the professional services related to the customization and implementation of software, the Company also provides post-contract support ("PCS") services, including technical support and maintenance services. For those contracts that include PCS service arrangements which are not essential to the functionality of the software solution, the Company separates the FASB ASC 605-35 software services and PCS services utilizing the multiple-element arrangement model prescribed by FASB ASC 605-25, "Revenue Recognition - Multiple-Element Arrangements". FASB ASC 605-25 addresses the accounting treatment for an arrangement to provide the delivery or performance of multiple products and/or services where the delivery of a product or system or performance of services may occur at different points in time or over different periods of time. The Company utilizes FASB ASC 605-25 to separate the PCS service elements and allocate total contract consideration to the contract elements based on the relative fair value of those elements utilizing PCS renewal terms as evidence of fair value. Revenues from PCS services are recognized ratably on a straight-line basis over the term of the support and maintenance agreement. | |
Fair Value Measurement, Policy [Policy Text Block] | ' |
Fair Value Measurement - For cash and cash equivalents, current trade receivables and current trade payables, the carrying amounts approximate fair value because of the short maturity of these items. | |
The Company utilizes the methods of fair value measurement as described in FASB ASC 820, “Fair Value Measurements” to value its financial assets and liabilities. As defined in FASB ASC 820, fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, FASB ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: | |
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | |
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to level 3 inputs. | |
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. | |
Managed Services Implementation Revenues and Costs [Policy Text Block] | ' |
Managed Services Implementation Revenues and Costs - For long-term managed service agreements, implementation efforts are often necessary to develop the software utilized to deliver the managed service. Costs of such implementation efforts may include internal and external costs for coding or customizing systems and costs for conversion of client data. We may invoice our clients for implementation fees at the go-live date of the underlying software. Lump sum implementation fees received from our clients are initially deferred and recognized on a pro-rata basis as services are provided. Specific, incremental and direct costs of implementation incurred prior to the services going live are deferred pursuant to FASB ASC 605-35-25 and amortized over the period that the related ongoing services revenue is recognized to the extent that the Company believes that the recoverability of the costs from the contract is probable. If a client terminates a managed services arrangement prior to the end of the contract, a loss on the contract may be recorded, if applicable, and any remaining deferred implementation revenues and costs would then be recognized into earnings generally over the remaining service period through the termination date. During the thirty-nine weeks ended September 28, 2013, implementation costs of $270,000 related to managed services contracts were deferred. No implementation costs related to managed services contracts were deferred during the thirteen or thirty-nine weeks ended September 29, 2012. | |
Research, Development, and Computer Software, Policy [Policy Text Block] | ' |
Research and Development and Software Development Costs - During the thirteen and thirty-nine weeks ended September 28, 2013, software development costs of $179,000 and $493,000, respectively, were expensed as incurred. During the thirteen and thirty-nine weeks ended September 29, 2012, software development costs of $80,000 and $420,000, respectively, were expensed as incurred. No software development costs were capitalized during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012. | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' |
Foreign Currency Transactions and Translation - Cartesian Ltd. and the international operations of Cambridge Strategic Management Group, Inc. conduct business primarily denominated in their respective local currency, which is their functional currency. Assets and liabilities have been translated to U.S. dollars at the period-end exchange rates. Revenues and expenses have been translated at exchange rates which approximate the average of the rates prevailing during each period. Translation adjustments are reported as a separate component of other comprehensive income (loss) in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Accumulated other comprehensive loss resulting from foreign currency translation adjustments totaled $4.0 million as of September 28, 2013 and December 29, 2012, and is included in Total Stockholders’ Equity in the Condensed Consolidated Balance Sheets. Assets and liabilities denominated in other than the functional currency of a subsidiary are re-measured at rates of exchange on the balance sheet date. Resulting gains and losses on foreign currency transactions are included in the Company’s results of operations. Realized and unrealized exchange gains and losses included in the results of operations were not significant during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings (Loss) Per Share - The Company calculates and presents earnings (loss) per share using a dual presentation of basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The weighted average number of common shares outstanding excludes treasury shares held by the Company. Diluted earnings (loss) per share is computed in the same manner except that the weighted average number of shares is increased for dilutive securities. | |
In accordance with the provisions of FASB ASC 260, "Earnings per Share," the Company uses the treasury stock method for calculating the dilutive effect of employee stock options and non-vested shares. The employee stock options and non-vested shares will have a dilutive effect under the treasury stock method only when average market value of the underlying Company common stock during the respective period exceeds the assumed proceeds. For share-based payment awards with a performance condition, the Company must first use the guidance on contingently issuable shares in FASB ASC 260-10 to determine whether the awards should be included in the computation of diluted earnings per share for the reporting period. For all non-vested performance-based awards, the Company determines the number of shares, if any, that would be issuable at the end of the reporting period if the end of the reporting period were the end of the contingency period. In applying the treasury stock method, assumed proceeds include the amount, if any, the employee must pay upon exercise, the amount of compensation cost for future services that the Company has not yet recognized, and the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the options and the vesting of non-vested shares. The Company has excluded the effect of 402,593 and 497,888 stock options in the calculation of diluted income per share for the thirteen weeks ended September 28, 2013 and September 29, 2012, respectively, as the effect would have been anti-dilutive. For the thirty-nine weeks ended September 28, 2013 and September 29, 2012, the Company has not included the effect of stock options and non-vested shares in the calculation of diluted loss per share as it reported a net loss for these periods and the effect would have been anti-dilutive. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent Accounting Pronouncements - In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“FASB ASU 2013-02”). The amendment in this update requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles to be reclassified in its entirety to net income. The provisions of FASB ASU 2013-02 are effective for annual and interim periods beginning after December 15, 2012. The adoption of the provisions of FASB ASU 2013-02 did not have a material impact on the Company's consolidated financial statements. | |
In July 2013, the FASB issued Accounting Standards Update No. 2013-11,Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“FASB ASU 2013-11”). The update requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The provisions of FASB ASU 2013-11 are effective for annual and interim periods beginning after December 15, 2013. The Company does not anticipate that the adoption of the provisions of FASB ASU 2013-11 will have a material impact on the Company's consolidated financial statements. | |
Goodwill_and_LongLived_Assets_
Goodwill and Long-Lived Assets (Tables) | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||
Schedule of Goodwill [Table Text Block] | ' | ||||||||||
The changes in the carrying amount of goodwill for the thirty-nine weeks ended September 28, 2013 are as follows (in thousands): | |||||||||||
North | |||||||||||
America | EMEA | Total | |||||||||
Balance as of December 29, 2012 | $ | 3,947 | $ | 4,213 | $ | 8,160 | |||||
Changes in foreign currency exchange rates | - | -27 | -27 | ||||||||
Balance as of September 28, 2013 | $ | 3,947 | $ | 4,186 | $ | 8,133 | |||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Equity Incentive Plan 1998 [Member] | ' | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||
A summary of the option activity under the Company's Amended and Restated 1998 Equity Incentive Plan (“1998 Plan”), as of September 28, 2013 and changes during the thirty-nine weeks then ended is presented below: | ||||||||
Weighted | ||||||||
Average | ||||||||
Exercise | ||||||||
Shares | Price | |||||||
Outstanding at December 29, 2012 | 347,293 | $ | 10.6 | |||||
Forfeited/cancelled | -18,800 | $ | 9.31 | |||||
Outstanding at September 28, 2013 | 328,493 | $ | 10.67 | |||||
Options vested and exercisable at September 28, 2013 | 328,493 | $ | 10.67 | |||||
Supplemental Stock Plan 2000 [Member] | ' | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||
A summary of the option activity under the Company's 2000 Supplemental Stock Plan (the "Supplemental Stock Plan") as of September 28, 2013 and changes during the thirty-nine weeks then ended is presented below: | ||||||||
Weighted | ||||||||
Average | ||||||||
Exercise | ||||||||
Shares | Price | |||||||
Outstanding at December 29, 2012 | 102,000 | $ | 11.44 | |||||
Forfeited/cancelled | -19,400 | $ | 11.88 | |||||
Outstanding at September 28, 2013 | 82,600 | $ | 11.33 | |||||
Options vested and exercisable at September 28, 2013 | 82,600 | $ | 11.33 | |||||
Business_Segments_and_Major_Cu1
Business Segments and Major Customers (Tables) | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
Business Segments And Major Customers [Abstract] | ' | |||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||
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 28, 2013: | ||||||||||||||
Revenues | $ | 26,553 | $ | 14,887 | $ | 41,440 | ||||||||
Income (loss) from operations | 6,332 | 3,487 | $ | -10,342 | -523 | |||||||||
Total assets | $ | 6,026 | $ | 6,241 | $ | 22,854 | $ | 35,121 | ||||||
For the thirteen weeks ended September 28, 2013: | ||||||||||||||
Revenues | $ | 8,400 | $ | 4,993 | $ | 13,393 | ||||||||
Income (loss) from operations | 2,076 | 1,184 | $ | -3,211 | 49 | |||||||||
As of the fiscal year ended December 29, 2012 | ||||||||||||||
Total assets | $ | 7,519 | $ | 5,243 | $ | 22,554 | $ | 35,316 | ||||||
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 | |||||||||
Schedule of Revenue from External Customers by Geographical Areas [Table Text Block] | ' | |||||||||||||
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 28, | September 29, | September 28, | September 29, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
United States | $ | 7,818 | $ | 8,647 | $ | 25,338 | $ | 28,335 | ||||||
International: | ||||||||||||||
United Kingdom | 5,246 | 3,225 | 14,609 | 9,553 | ||||||||||
Other | 329 | 861 | 1,493 | 2,189 | ||||||||||
Total | $ | 13,393 | $ | 12,733 | $ | 41,440 | $ | 40,077 | ||||||
Schedule of Revenue and Accounts Receivable by Major Customers by Reporting Segments [Table Text Block] | ' | |||||||||||||
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 thirty-nine weeks | For the thirty-nine weeks | |||||||||||||
ended September 28, 2013 | ended September 29, 2012 | |||||||||||||
North | North | |||||||||||||
America | EMEA | America | EMEA | |||||||||||
Customer A | $ | 9,405 | $ | 11,312 | ||||||||||
Customer B | $ | 4,980 | $ | 4,499 | ||||||||||
Customer C | $ | 552 | $ | 6,360 | $ | 24 | $ | 2,637 | ||||||
Customer D | $ | 3,948 | $ | 4,850 | ||||||||||
Revenues | ||||||||||||||
For the thirteen weeks | For the thirteen weeks | |||||||||||||
ended September 28, 2013 | ended September 29, 2012 | |||||||||||||
North | North | |||||||||||||
America | EMEA | America | EMEA | |||||||||||
Customer A | $ | 2,850 | $ | 3,331 | ||||||||||
Customer B | $ | 1,302 | $ | 1,442 | ||||||||||
Customer C | $ | 318 | $ | 2,631 | $ | 15 | $ | 833 | ||||||
Customer D | $ | 1,260 | $ | 1,526 | ||||||||||
Accounts Receivable | ||||||||||||||
As of | As of | |||||||||||||
September 28, | September 29, | |||||||||||||
2013 | 2012 | |||||||||||||
Customer A | $ | 1,903 | $ | 2,837 | ||||||||||
Customer B | $ | 1,163 | $ | 1,861 | ||||||||||
Customer C | $ | 3,659 | $ | 1,018 | ||||||||||
Customer D | $ | 598 | $ | 887 | ||||||||||
Basis_of_Reporting_Details_Tex
Basis of Reporting (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | |
Implementation Costs | ' | ' | $270,000 | $0 | ' |
Software Development Costs | 179,000 | 80,000 | 493,000 | 420,000 | ' |
Foreign currency translation adjustment | $4,000,000 | ' | $4,000,000 | ' | $4,000,000 |
Stock Option [Member] | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 402,593 | 497,888 | ' | ' | ' |
Goodwill_and_LongLived_Assets_1
Goodwill and Long-Lived Assets (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 |
Balance as of December 29, 2012 | $8,160 |
Changes in foreign currency exchange rates | -27 |
Balance as of September 28, 2013 | 8,133 |
North America [Member] | ' |
Balance as of December 29, 2012 | 3,947 |
Changes in foreign currency exchange rates | 0 |
Balance as of September 28, 2013 | 3,947 |
EMEA [Member] | ' |
Balance as of December 29, 2012 | 4,213 |
Changes in foreign currency exchange rates | -27 |
Balance as of September 28, 2013 | $4,186 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 9 Months Ended |
Sep. 28, 2013 | |
Equity Incentive Plan 1998 [Member] | ' |
Shares, Outstanding at December 29, 2012 (in shares) | 347,293 |
Shares, Forfeited/cancelled (in shares) | -18,800 |
Shares, Outstanding at September 28, 2013 (in shares) | 328,493 |
Shares,Options vested and exercisable September 28, 2013 (in shares) | 328,493 |
Weighted Average Exercise Price, Outstanding at December 29, 2012 (in dollars per share) | $10.60 |
Weighted Average Exercise Price, Forfeited/cancelled (in dollars per share) | $9.31 |
Weighted Average Exercise Price, Outstanding at September 28, 2013 (in dollars per share) | $10.67 |
Weighted Average Exercise Price, Options vested and exercisable at September 28, 2013 (in dollars per share) | $10.67 |
Supplemental Stock Plan 2000 [Member] | ' |
Shares, Outstanding at December 29, 2012 (in shares) | 102,000 |
Shares, Forfeited/cancelled (in shares) | -19,400 |
Shares, Outstanding at September 28, 2013 (in shares) | 82,600 |
Shares,Options vested and exercisable September 28, 2013 (in shares) | 82,600 |
Weighted Average Exercise Price, Outstanding at December 29, 2012 (in dollars per share) | $11.44 |
Weighted Average Exercise Price, Forfeited/cancelled (in dollars per share) | $11.88 |
Weighted Average Exercise Price, Outstanding at September 28, 2013 (in dollars per share) | $11.33 |
Weighted Average Exercise Price, Options vested and exercisable at September 28, 2013 (in dollars per share) | $11.33 |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details Textual) (Equity Incentive Plan 1998 [Member], USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | |
Service Based Non vested Share Awards [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 110,000 | 110,000 | 110,000 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $2.26 | $2.26 | $2.26 |
Allocated Share-based Compensation Expense | $61,000 | $183,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 54,000 | 54,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | '2 months 15 days | ' |
Performance Based Non vested Share Awards [Member] | ' | ' | ' |
Allocated Share-based Compensation Expense | 170,000 | 340,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $2,100,000 | $2,100,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | '36 months | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | 800,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | $3.14 | ' |
Business_Segments_and_Major_Cu2
Business Segments and Major Customers (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 |
Revenues | $13,393 | $12,733 | $41,440 | $40,077 | ' |
Income (loss) from operations | 49 | 171 | -523 | -1,370 | ' |
Total assets | 35,121 | 33,720 | 35,121 | 33,720 | 35,316 |
North America [Member] | ' | ' | ' | ' | ' |
Revenues | 8,400 | 9,219 | 26,553 | 29,806 | ' |
Income (loss) from operations | 2,076 | 2,616 | 6,332 | 8,233 | ' |
Total assets | 6,026 | 8,750 | 6,026 | 8,750 | 7,519 |
EMEA [Member] | ' | ' | ' | ' | ' |
Revenues | 4,993 | 3,514 | 14,887 | 10,271 | ' |
Income (loss) from operations | 1,184 | 608 | 3,487 | 1,563 | ' |
Total assets | 6,241 | 3,912 | 6,241 | 3,912 | 5,243 |
Unallocated Amount To Segment [Member] | ' | ' | ' | ' | ' |
Income (loss) from operations | -3,211 | -3,053 | -10,342 | -11,166 | ' |
Total assets | $22,854 | $21,058 | $22,854 | $21,058 | $22,554 |
Business_Segments_and_Major_Cu3
Business Segments and Major Customers (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Revenues | $13,393 | $12,733 | $41,440 | $40,077 |
United States [Member] | ' | ' | ' | ' |
Revenues | 7,818 | 8,647 | 25,338 | 28,335 |
United Kingdom [Member] | ' | ' | ' | ' |
Revenues | 5,246 | 3,225 | 14,609 | 9,553 |
Other Location [Member] | ' | ' | ' | ' |
Revenues | $329 | $861 | $1,493 | $2,189 |
Business_Segments_and_Major_Cu4
Business Segments and Major Customers (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Customer A [Member] | ' | ' | ' | ' |
Accounts Receivable, Major Customer, Amount | $1,903 | $2,837 | $1,903 | $2,837 |
Customer B [Member] | ' | ' | ' | ' |
Accounts Receivable, Major Customer, Amount | 1,163 | 1,861 | 1,163 | 1,861 |
Customer C [Member] | ' | ' | ' | ' |
Accounts Receivable, Major Customer, Amount | 3,659 | 1,018 | 3,659 | 1,018 |
Customer D [Member] | ' | ' | ' | ' |
Accounts Receivable, Major Customer, Amount | 598 | 887 | 598 | 887 |
North America [Member] | Customer A [Member] | ' | ' | ' | ' |
Revenue, Major Customer, Amount | 2,850 | 3,331 | 9,405 | 11,312 |
North America [Member] | Customer B [Member] | ' | ' | ' | ' |
Revenue, Major Customer, Amount | 1,302 | 1,442 | 4,980 | 4,499 |
North America [Member] | Customer C [Member] | ' | ' | ' | ' |
Revenue, Major Customer, Amount | 318 | 15 | 552 | 24 |
North America [Member] | Customer D [Member] | ' | ' | ' | ' |
Revenue, Major Customer, Amount | 1,260 | 1,526 | 3,948 | 4,850 |
EMEA [Member] | Customer C [Member] | ' | ' | ' | ' |
Revenue, Major Customer, Amount | $2,631 | $833 | $6,360 | $2,637 |
Business_Segments_and_Major_Cu5
Business Segments and Major Customers (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Entity Wide Information Percentage Revenue Contribution Top Ten Customers By Revenue Contribution | 82.80% | 82.40% | 83.50% | 81.70% |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Income Tax Expense (Benefit) | $20,000 | $30,000 | $59,000 | $90,000 |
Deferred Tax Assets, Valuation Allowance | $31,700,000 | ' | $31,700,000 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | |
Software [Member] | Software [Member] | ||
Loss Contingency, Damages Sought, Value | $1,600,000 | ' | ' |
Long-Term Purchase Commitment, Amount | ' | 285,000 | ' |
Long-term Purchase Commitment, Time Period (in years) | ' | '3 | ' |
Long-term Purchase Commitment, Amount Outstanding | ' | ' | $143,000 |