Cartesian 10-Q 17 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Apr. 02, 2016	May. 06, 2016
Document Information [Line Items]
Entity Registrant Name	Cartesian, Inc.
Entity Central Index Key	1,094,814
Current Fiscal Year End Date	--01-02
Entity Filer Category	Smaller Reporting Company
Trading Symbol	CRTN
Entity Common Stock, Shares Outstanding		8,887,061
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 2, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Apr. 02, 2016	Jan. 02, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 3,074,000	$ 6,879,000
Accounts receivable, net	18,611,000	16,556,000
Inventory, net	625,000	625,000
Prepaid and other current assets	1,795,000	1,754,000
Total current assets	24,105,000	25,814,000
NONCURRENT ASSETS:
Property and equipment, net	2,502,000	2,511,000
Goodwill	10,871,000	11,071,000
Intangible assets, net	877,000	996,000
Deferred income tax assets	540,000	509,000
Other noncurrent assets	442,000	458,000
Total Assets	39,337,000	41,359,000
CURRENT LIABILITIES:
Trade accounts payable	3,502,000	3,253,000
Current borrowings	3,269,000	3,269,000
Liability for derivatives	879,000	952,000
Accrued payroll, bonuses and related expenses	5,075,000	5,125,000
Deferred revenue	1,133,000	1,551,000
Accrued acquisition consideration	57,000	327,000
Other accrued liabilities	2,217,000	1,924,000
Total current liabilities	16,132,000	16,401,000
NONCURRENT LIABILITIES:
Deferred income tax liabilities	807,000	780,000
Deferred revenue	307,000	407,000
Contingent consideration liability	1,928,000	2,176,000
Other noncurrent liabilities	757,000	952,000
Total noncurrent liabilities	3,799,000	4,315,000
TOTAL STOCKHOLDERS’ EQUITY	19,406,000	20,643,000
STOCKHOLDERS' EQUITY:
Total Liabilities and Stockholders' Equity	$ 39,337,000	$ 41,359,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Revenues	$ 20,317	$ 18,050
Cost of services	13,295	11,372
Gross Profit	7,022	6,678
Selling, general and administrative expenses (includes non-cash share-based compensation expense of $133 and $301 for the thirteen weeks ended April 2, 2016 and April 4, 2015, respectively)	7,766	7,306
Loss from operations	(744)	(628)
Other income (expense):
Interest expense, net	(60)	(60)
Change in fair value of warrants and derivative liabilities	73	(125)
Incentive warrants expense	(7)	(38)
Total other income (expense)	6	(223)
Loss before income taxes	(738)	(851)
Income tax provision	(142)	(170)
Net loss	(880)	(1,021)
Other comprehensive loss:
Foreign currency translation adjustment	(497)	(681)
Comprehensive loss	$ (1,377)	$ (1,702)
Net loss per common share:
Basic and diluted	$ (0.10)	$ (0.13)
Weighted average shares used in calculation of net loss per common share
Basic and diluted	8,643	8,090

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($)	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Selling, General and Administrative Expenses [Member]
Allocated Share-based Compensation Expense	$ 133	$ 301

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (880)	$ (1,021)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation	245	220
Amortization of intangible assets	89	0
Share-based compensation	133	301
Deferred tax expense (benefit)	(17)	170
Change in fair value of warrants and derivative liabilities	(73)	125
Fair value adjustment to contingent consideration	(248)	0
Incentive warrants expense	7	38
Other changes in operating assets and liabilities:
Accounts receivable, net	(2,280)	2,504
Prepaid and other assets	(45)	(290)
Trade accounts payable	360	528
Deferred revenue	(484)	772
Accrued severance liability and related costs	0	(1,694)
Accrued liabilities	140	54
Net cash (used in) provided by operating activities	(3,053)	1,707
CASH FLOWS FROM INVESTING ACTIVITIES:
Business acquisition, net of cash acquired	(270)	0
Acquisition of property and equipment	(288)	(370)
Net cash used in investing activities	(558)	(370)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of common stock	0	(92)
Net cash used in financing activities	0	(92)
Effect of exchange rate on cash and cash equivalents	(194)	(405)
Net (decrease) increase in cash and cash equivalents	(3,805)	840
Cash and cash equivalents, beginning of period	6,879	12,999
Cash and cash equivalents, end of period	3,074	13,839
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	64	63
Non-cash investing and financing transactions:
Accrued property and equipment additions	$ 275	$ 317

Basis of Reporting

Basis of Reporting	3 Months Ended
	Apr. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Significant Accounting Policies [Text Block]	The condensed consolidated financial statements and accompanying notes of Cartesian, Inc. and its subsidiaries ( ) 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 weeks ended April 2, 2016 are not necessarily indicative of the results to be expected for the full year ending December 31, 2016. Revenue Recognition - Construction-Type and Production-Type Contracts 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, the Company revises its 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. Managed Services Implementation Revenues and Costs 97,000 140,000 229,000 Research and Development and Software Development Costs 122,000 208,000 147,000 177,000 Foreign Currency Transactions and Translation 6.0 5.5 74,000 168,000 Loss Per Share 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, non-vested shares and warrants. The employee stock options, non-vested shares and warrants 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. For the thirteen weeks ended April 2, 2016 and April 4, 2015, approximately 7,000 207,389 A ccounts Receivable “Transfers and Servicing – Sales of Financial Assets” 4.4 5.8 Inventory 0.6 In February 2016, the FASB issued ASU 2016-02, “Leases” which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently evaluating the effects that the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” which requires deferred tax liabilities and assets to be classified as noncurrent in entities’ balance sheets. Under current accounting principles generally accepted in the United States of America (“U.S. GAAP”), an entity is required to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11 which requires entities to measure most inventory at the lower of cost and net realizable value thereby simplifying the existing guidance which required entities to measure inventory at the lower of cost or market. Under the current guidance, market is defined as replacement cost, net realizable value or net realizable value less a normal profit margin. The newly issued guidance eliminates the requirement to determine replacement cost and defines net realizable value as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. This new guidance is effective for the Company beginning in fiscal 2017. The Company does not expect the adoption of this standard update will have a material effect on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, which provides guidance on a customer’s accounting for cloud computing costs. Under the ASU, a customer must determine whether a cloud computing arrangement contains a software license. If so, the customer would account for the fees related to the software license element in a manner consistent with how the acquisition of other software licenses is accounted for under current U.S. GAAP. If the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. The ASU does not prescribe how to account for cloud computing arrangements deemed to be service contracts. An arrangement would contain a software license element if both of the following criteria are met: the customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty; and it is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software. The ASU is effective for annual periods (and interim periods therein) beginning after December 15, 2015. Entities may adopt the guidance retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. The Company prospectively adopted this guidance in its first quarter of fiscal 2016 and the adoption did not have a material impact on its consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The standard update resolves the diverse accounting treatment for these share-based payments by requiring that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The provisions of FASB ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company adopted this guidance in its first quarter of fiscal 2016 and the adoption did not have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This standard update clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The standard update intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. Upon adoption of this standard update, we expect that the allocation and timing of revenue recognition will be impacted. In July 2015 the FASB voted to defer the effective date of this new standard by one year and to permit early adoption beginning as of the original effective date of the new standard. The provisions of FASB ASU 2014-09 will now be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and are to be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements.

Acquisition

Acquisition	3 Months Ended
	Apr. 02, 2016
Business Combinations [Abstract]
Business Combination Disclosure [Text Block]	2. Acquisition On July 22, 2015, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) and completed the acquisition of all of the outstanding shares of capital stock of Farncombe France SARL, an entity formed under the laws of France, and Farncombe Technology Limited, a company incorporated and registered in England and Wales (collectively, the “Farncombe Entities”). The Farncombe Entities operate primarily in the U.K. and Europe and are in the business of providing strategic consultancy, content security, testing and implementation services for broadcast and broadband internet digital television. Farncombe’s experience in these areas along with Cartesian’s strategic, operational and technical capabilities in serving global service providers strengthens the Company’s ability to support convergence and quad play offerings in this growing market. The total purchase price, subject to adjustment in accordance with the terms of the Purchase Agreement, was £ 4,360,620 6.8 · Cash paid at the closing in the amount of £ 654,093 1.0 15 · £ 1,308,186 2.0 588,567 30 2.22 3.46 · Additional consideration in the amount of £ 654,093 1.0 15 · Earn-out consideration (the “Earn-Out”) which is potentially payable in cash and/or shares of Company common stock as elected by each Seller in the Purchase Agreement and represents 40 The aggregate amount potentially payable pursuant to the Earn-Out consists of cash in an amount up to £ 719,483 1.0 461,055 1,024,765 1.5 as of April 2, 2016) and based upon the value of the shares as described below. Amounts, if any, payable under the Earn-Out are based upon the amounts of specified revenues attributable to the Farncombe Entities after June 1, 2015 through July 22, 2017, as defined in the Purchase Agreement. Pursuant to the Purchase Agreement, the number of shares of Company common stock payable under the Purchase Agreement at the closing and pursuant to the Earn-Out was determined based on the volume weighted average share price for Company common stock on the Nasdaq Stock Market for the 30 days ending on the day before the date of signing of the Purchase Agreement and based upon the average pounds sterling to dollar exchange rate recorded by the Financial Times for the 30 days ending on the day before the date of signing of the Purchase Agreement. In October 2015 the Company paid approximately $ 2.1 654,093 1.0 743,753 1.1 184,000 12,000 0.3 The Purchase Agreement contains non-compete and non-solicitation agreements of the individual former shareholders of the Farncombe Entities. The Purchase Agreement also contains customary warranties, covenants and indemnification provisions. The Company accounted for the acquisition of the Farncombe Entities using the acquisition method as required in FASB ASC 805, “Business Combinations.” Based on the acquisition method of accounting, the consideration was allocated to the assets and liabilities acquired based on their fair values as of the acquisition date. Any remaining amount of the purchase price allocation was recorded as goodwill. The Farncombe Entities are included in the Company’s EMEA segment. Purchase Price (in thousands) Cash paid at closing $ 1,015 Equity issued at closing 2,036 Fair value of contingent consideration 1,921 Working capital adjustment 2,485 Total purchase price $ 7,457 Purchase Price Allocation (in thousands) Tangible assets and liabilities Cash $ 1,378 Accounts receivable, net 4,627 Other current assets 191 Other non-current assets 137 Accounts payable (1,874) Accrued payroll and related expenses (796) Other current liabilities (636) Non-current deferred tax liability (264) Intangible assets 1,260 Goodwill 3,434 Net assets acquired $ 7,457 Based on the results of the acquisition valuation, the Company allocated approximately $1.3 million of the purchase price to identifiable intangible assets. Weighted- Amount Amortization (in thousands) (Years) Identifiable Intangible Assets Tradename $ 90 0.5 Non-compete agreements 60 4.5 Customer relationships 1,110 3.5 Total identifiable intangible assets $ 1,260 The excess of purchase consideration over net assets assumed was recorded as goodwill, which represents the strategic value assigned to the Farncombe Entities, including the expected benefit from synergies resulting from the transaction, as well as the knowledge and experience of the workforce in place. In accordance with applicable accounting standards, goodwill will not be amortized but instead will be tested for impairment at least annually, or more frequently, if certain indicators are present. In the event that management determines that the value of goodwill becomes impaired, the combined company will incur an accounting charge for the amount of the impairment during the fiscal quarter in which the determination is made. The goodwill and intangible assets related to this acquisition are not deductible for foreign tax purposes. The fair values of assets acquired and liabilities assumed are based on estimates of fair values as of the acquisition date. Management believes the fair values recognized for the assets acquired and liabilities assumed are based on reasonable estimates and assumptions. The Company has classified the Earn-Out liability as a Level 3 liability and the fair value of the Earn-Out liability is evaluated each reporting period with changes in its fair value included in the Company’s results of operations. During the first quarter of fiscal 2016, the change in the fair value of the Earn-Out liability was a decrease of $ 248,000 1,928,000 2,176,000 If the Earn-out were to be achieved prior to the end of the Earn-out period, the former shareholders of the Farncombe Entities could request payment prior to the end of the Earn-out period. Management’s current expectations are that it will not be achieved within the next 12 months and therefore has classified the liability as non-current. Pro Forma Financial Information The following unaudited condensed pro forma financial information presents the results of operations as if the acquisition had taken place on the first day of fiscal 2015. These amounts were prepared in accordance with the acquisition method of accounting under existing standards and are not necessarily indicative of the results of operations that would have occurred if our acquisition of the Farncombe Entities had been completed on the first day of fiscal 2015, nor are they indicative of our future operating results. Pro forma adjustments consist solely of an adjustment to record intangible amortization expense of $ 103,000 Dollars in thousands except per share data Thirteen April 4, 2015 Revenue $ 22,012 Net loss $ (871) Net loss per share $ (0.10) Weighted-average shares used in calculation of pro forma net (loss) income per share: Basic and diluted shares outstanding 8,679

Strategic Alliance and Investme

Strategic Alliance and Investment by Elutions, Inc.	3 Months Ended
	Apr. 02, 2016
Investments, All Other Investments [Abstract]
Strategic Alliance And Investment [Text Block]	3. Strategic Alliance and Investment by Elutions, Inc. Strategic Alliance and Investment by Elutions, Inc. On February 25, 2014, the Company entered into an investment agreement (the “Investment Agreement”) with Elutions, a provider of operational business intelligence solutions. Under the Investment Agreement, the Company agreed to issue and sell shares of common stock to Elutions and to issue stock purchase warrants to Elutions, and the parties agreed that a subsidiary of Elutions would loan funds to a subsidiary of the Company. On March 18, 2014, the Company and Elutions completed the closing (the "Closing") of the transactions contemplated under the Investment Agreement. At the Closing, (a) the Company issued and sold 609,756 3.28 2,000,000 3,268,664 996,544 3.28 3,400,000 3.85 4.85 The Investment Agreement contains a number of agreements and covenants, including (i) certain affirmative and negative covenants relating to the Note applicable to the Company and its subsidiaries, (ii) an agreement of the Company to assign to Elutions certain customer contracts obtained jointly with Elutions if a competitor acquires control of the Company, (iii) confidentiality restrictions applicable to both parties, (iv) a standstill agreement of Elutions, (v) an agreement of the parties to negotiate in good faith for the purchase by Elutions of additional shares of Common Stock equal to 6.5 38.5 Promissory Note The Note issued at Closing by the Company's subsidiary, Cartesian Limited, in the aggregate original principal amount of $ 3,268,664 7.825 March 18, 2019 5.50 9.825 63,000 Tracking Warrant Under the Tracking Warrant, Elutions may acquire 996,544 3.28 5.50 Incentive Warrant Under the Incentive Warrant, Elutions can earn the right to purchase up to 3,400,000 3.85 4.85 March 18, 2020 March 18, 2019 0.25 Additional Warrant Provisions Each of the Warrants has economic anti-dilution protection provisions which provide for adjustments to the exercise price and the number of shares of common stock which may be acquired pursuant to the Warrants in the event of issuances of shares of common stock by the Company at a price less than the 30-day volume weighted average trading price at the time of issuance, subject to a number of exceptions. Each of the Warrants also permits Elutions (subject to certain exceptions) to purchase shares in future equity offerings made by the Company on a pro rata basis to all stockholders, with such participation right based upon the maximum number of shares that may be purchased under the Warrant. Registration Rights At Closing, the Company and Elutions entered into a Registration Rights Agreement (the "Registration Rights Agreement"), pursuant to which the Company has obligations to register for resale the shares of common stock issued under the Investment Agreement and the Warrants. Under the Registration Rights Agreement, the Company granted certain piggyback registration rights to Elutions and agreed to file and maintain a resale shelf registration statement for the benefit of Elutions. The resale shelf registration was filed with the SEC on August 12, 2014 and was declared effective on August 26, 2014. Commercial Relationship The Investment Agreement and the agreements and instruments described above are part of a strategic relationship between the Company and Elutions. As part of the strategic relationship, the parties entered into certain commercial framework documents, including a Market Development Agreement and related Inventory Agreement, on February 25, 2014, and enter into client agreements and bilateral agreements from time to time in the ordinary course of business outlining the terms of the parties' commercial relationship with respect to business development and providing products, solutions and services to clients. The parties have agreed to a term of five years, with automatic two-year renewals unless notice is given, and subject to termination rights in certain events. The Company has agreed to restrictions during the term and for two years thereafter in regard to solutions or services that are substantially similar to or competitive with certain solutions or services of Elutions, and each party has agreed not to hire the other party's employees during the same period. The parties have agreed on a general framework for pursuing, entering into and implementing customer contracts, which includes providing for joint and separate client pursuits and marketing on an initial and ongoing basis, procedures for contracting with clients, procedures for interface between the parties, limited exclusivity requirements of Elutions relating to identified prospects and clients of the Company, intellectual property rights of Elutions to its products and related restrictions, restrictions regarding use of confidential information, limitations on liability of the parties, independent contractor status of the parties, limitations on publicity by the parties, and dispute resolution, including arbitration. The parties intend that specific pricing and allocation provisions and other specific commercial terms will be included in individual client statements of work, subject to mutually agreed gross margin requirements for the benefit of the Company. The parties also agreed to a framework for certain initial inventory orders and reorders by the Company from Elutions, and related commitments, timing and pricing procedures, when the Company is the prime contracting party under certain client statements of work. With respect to the required initial inventory order, the Company was required to purchase $ 3.0 3.0 Under the Market Development Agreement, if the Company had not sold 75% of such inventory acquired from Elutions within one year after acquisition, Elutions is required upon request of the Company to source its requirements for future projects in the U.S. or U.K. from such inventory subject to a 10% discount against the Company’s purchase price until the Company has exhausted such inventory. In fiscal 2015, the Company requested that Elutions source its requirements for future projects from the inventory that was acquired by the Company from Elutions in July 2014. Management continues to work with Elutions to utilize the inventory and changes in management’s expectations in future periods could impact the net realizable value of the inventory. See Note 1, Basis of Reporting for a discussion of the inventory recorded with respect to our agreements with Elutions. Also under the Market Development Agreement, Elutions agreed to dedicate three full-time equivalent employees for the purpose of various functions related to the furtherance of the strategic alliance, and the Company agreed to fund the cost of the three full-time equivalent employees at a rate of $ 36,750 98,500 110,000 Under the subcontract, Elutions agreed to provide all services in accordance with the customer agreement except for project management services, to be provided by the Company. As of April 2, 2016, the Company estimates remaining license payments to Elutions under the subcontract are approximately $ 1.2 400,000 5.5 300,000 100,000 200,000 Accounting Treatment The Holder Redemption Option was determined to be an embedded derivative liability that was required to be bifurcated and recorded as a liability. In addition, the Company determined that the provision of the Note that permits Cartesian Limited to prepay the Note after 18 months if the trading price of the Company’s common stock exceeds $ 5.50 3,269,000 3,034,000 3,004,000 The vesting of the Incentive Warrant is contingent on services to be provided by Elutions and the achievement of performance conditions by Elutions. During the thirteen weeks ended April 2, 2016 and April 4, 2015, Elutions earned 4,086 24,786 7,000 38,000

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Apr. 02, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets Disclosure [Text Block]	4. Goodwill and Intangible Assets North America EMEA Total Balance as of January 2, 2016 $ 3,947 $ 7,124 $ 11,071 Changes in foreign currency exchange rates – (200) (200) Balance as of April 2, 2016 $ 3,947 $ 6,924 $ 10,871 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. 3.4 Non-Compete Customer Tradename Agreements Relationships Total Gross Carrying Amount: Balance as of January 2, 2016 $ 86 $ 57 $ 1,055 $ 1,198 Changes in foreign currency exchange rates (3) (2) (29) (34) Balance as of April 2, 2016 $ 83 $ 55 $ 1,026 $ 1,164 Accumulated Amortization: Balance as of January 2, 2016 $ (71) $ (5) $ (126) $ (202) Changes in foreign currency exchange rates 1 – 3 4 Amortization expense (13) (3) (73) (89) Balance as of April 2, 2016 $ (83) $ (8) $ (196) $ (287) The identifiable intangible assets in the table above resulted from the July 2015 acquisition of the Farncombe Entities and include the effects of foreign currency translation. This acquisition is discussed further in Note 2, Acquisition . Tradename, non-compete agreements and customer relationships carry amortization periods of six months, four and one-half years and three and one-half years, respectively. The amortization periods are based on the period of expected cash flows used to measure the fair value of the intangible assets. Aggregate amortization expense related to intangible assets was $ 89,000 (in thousands) 2016 (April 3, 2016 – December 31, 2016) $ 229 2017 305 2018 305 2019 37 2020 1 $ 877

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Apr. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	5. 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 5, Share-Based Compensation, in the Notes to the Consolidated Financial Statements included in Item 8, Consolidated Financial Statements of the 2015 Form 10-K. The Company recognized income tax benefits of $ 7,000 15,000 Equity Incentive Plan In April 2015, our Board of Directors approved an amendment and restatement of the Company’s Equity Incentive Plan (the “Equity Plan”), which was approved by our stockholders at the 2015 annual meeting of stockholders which was held on June 16, 2015. As a result of the amendment and restatement, the cumulative number of shares of common stock that are available for issuance (inclusive of shares previously issued) under the Equity Plan increased by 500,000 2,305,659 2,805,659 Stock Options Service-Based Stock Option Awards Shares Weighted Outstanding at January 2, 2016 244,553 $ 8.06 Exercised Forfeited/cancelled (15,540) $ 10.52 Outstanding at April 2, 2016 229,013 $ 7.89 Options vested and expected to vest at April 2, 2016 224,013 $ 7.97 Options exercisable at April 2, 2016 204,012 $ 8.37 The Company did not grant any service-based stock option awards during the thirteen weeks ended April 2, 2016 or April 4, 2015. The Company recorded share-based compensation expense in connection with service-based stock option awards of $ 5,000 25,000 14,000 24 20,000 Market Condition Stock Option Awards Shares Weighted Outstanding at January 2, 2016 200,000 $ 3.34 Outstanding at April 2, 2016 200,000 $ 3.34 Options vested and expected to vest at April 2, 2016 200,000 $ 3.34 Options exercisable at April 2, 2016 – $ – On June 16, 2015 the Company granted a non-qualified stock option award for 200,000 3.34 · the stock option will vest with respect to 75,000 4.00 · the stock option will vest with respect to an additional 75,000 5.00 · the stock option will vest with respect to an additional 50,000 6.00 “Compensation – Stock Compensation,” Grant Date Fair Derived Service $4.00 market condition tranche $ 1.95 151 $5.00 market condition tranche $ 1.95 262 $6.00 market condition tranche $ 1.99 362 During the thirteen weeks ended April 2, 2016 the Company recorded $ 65,000 77,000 8 Non-vested Shares Performance-Based Non-vested Share Awards Weighted Grant Date Shares Fair Value per Outstanding at January 2, 2016 250,215 $ 3.15 Outstanding at April 2, 2016 250,215 $ 3.15 On July 22, 2015, the Company granted 58,940 If the vesting percentage is less than 100% on the vesting date, that percentage of the non-vested stock that does not vest of the vesting date shall be forfeited. On April 8, 2013, the Company granted performance-based non-vested share awards for a total of 800,000 14 3.14 Share-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 weeks ended April 2, 2016 and April 4, 2015, the Company recorded $ 56,000 216,000 0.2 12 2000 Supplemental Stock Plan Shares Weighted Outstanding at January 2, 2016 36,900 $ 11.11 Forfeited/cancelled (5,700) $ 12.02 Outstanding at April 2, 2016 31,200 $ 10.95 Options vested and exercisable at April 2, 2016 31,200 $ 10.95 No awards have been granted under the Supplemental Stock Plan since it expired on May 23, 2010. There is no remaining unrecognized compensation cost related to stock options issued under the Supplemental Stock Plan. Put Option In connection with the Company’s approval of the separation from service of the Company’s former Chief Executive Officer on June 3, 2015, the Company issued a put option to the former executive which grants him the option and right to sell to the Company up to 112,692 4.50 In March 2016 the holder of the Put Option exercised the Put Option and in April 2016, subsequent to the end of the first quarter of fiscal 2016, the Company purchased approximately 19,000 4.50 85,000 90,036 102,000

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information	3 Months Ended
	Apr. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Balance Sheet Disclosures [Text Block]	6. Supplemental Balance Sheet Information April 2, 2016 January 2, 2016 Accrued payroll, bonuses and related expenses Accrued payroll $ 796 $ 448 Accrued bonuses 1,737 3,205 Accrued payroll taxes 1,444 636 Accrued vacation 851 539 Other 247 297 $ 5,075 $ 5,125 Other accrued liabilities Sales and value-added taxes payable $ 752 $ 478 Lease termination liability 133 135 Put option liability 102 102 Accrued income taxes 528 376 Accrued professional fees 140 604 Other 562 229 $ 2,217 $ 1,924

Business Segments and Major Cus

Business Segments and Major Customers	3 Months Ended
	Apr. 02, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	7. 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 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 ended April 2, 2016 and April 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, 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): Not Allocated Strategic to North America EMEA Alliances Segments Total As of and for the thirteen weeks ended April 2, 2016: Revenues $ 8,513 $ 11,702 $ 102 $ – $ 20,317 Income (loss) from operations 1,754 1,477 (76) (3,899) (744) Total assets $ 6,993 11,627 625 20,092 39,337 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 thirteen weeks ended April 4, 2015: Revenues $ 7,918 $ 10,025 $ 107 $ - $ 18,050 Income (loss) from operations 1,789 2,072 (352) (4,137) (628) Total assets $ 6,647 $ 4,115 $ 3,000 $ 26,918 $ 40,680 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 and intangible assets and deferred tax assets, excluding deferred tax assets recognized on accounts receivable reserves, which are assigned to their segments. For the Thirteen Weeks Ended April 2, April 4, 2016 2015 United States $ 8,715 $ 7,920 International: United Kingdom 10,960 9,713 Other 642 417 Total $ 20,317 $ 18,050 Long-Lived Assets April 2, January 2, 2016 2016 United States $ 2,585 $ 2,611 United Kingdom 347 346 France 12 12 Total $ 2,944 $ 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 thirteen weeks For the thirteen weeks ended April 2, 2016 ended April 4, 2015 North North America EMEA America EMEA Customer A $ 4,426 $ 4,142 Customer B $ 3,273 $ 3,374 Customer C 3,005 $ 4,750 Accounts Receivable As of As of April 2, 2016 April 4, 2015 Customer A $ 3,812 $ 2,022 Customer B $ 2,255 $ 2,573 Customer C $ 2,544 $ 736 Revenues from the Company’s ten most significant customers accounted for approximately 83.2 90.8

Income Taxes

Income Taxes	3 Months Ended
	Apr. 02, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	8. Income Taxes During the thirteen weeks ended April 2, 2016 and April 4, 2015, the Company recorded an income tax provision of $142,000 and $ 170,000 The Company has reserved all of its domestic net deferred tax assets as of April 2, 2016 and January 2, 2016 with a valuation allowance in accordance with the provisions of FASB ASC 740, “ Income Taxes 34.1 The Company analyzes its uncertain tax positions pursuant to the provisions of FASB ASC 740 “ Income Taxes The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and in 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 April 2, 2016, the Company has no income tax examinations in process.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 02, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	9. Fair Value Measurements The Company utilizes the methods of fair value measurement as described in FASB ASC 820, “Fair Value Measurements” Level 1: Level 2: Level 3: 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. Recurring Fair Value Measurements The fair value of the Company’s Note and the Holder Redemption Option were determined using a binomial lattice model. (See Note 3, Strategic Alliance and Investment by Elutions, Inc., for further discussion of the Note and Holder Redemption Option.) The Holder Redemption Option was determined to be an embedded derivative liability that was required to be bifurcated and recorded as a liability. The Company has classified the Holder Redemption Option and Note as Level 3 liabilities. Changes in the fair value of the Holder Redemption Option are recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss. The Company reassesses the fair value of this liability on a quarterly basis. Based on that assessment, the Company recognized a decrease of $ 73,000 125,000 April 2, 2016 January 2, 2016 Common stock price $ 2.23 $ 2.22 Dividend yield 0.0 % 0.0 % Expected term 0.5 years 0.75 years Risk-free interest rate 0.9 % 1.3 % Estimated stock volatility 46.9 % 45.0 % In addition, the Company determined that the provision of the Note that permits Cartesian Limited to prepay the Note after 18 months if the trading price of the Company’s common stock exceeds $ 5.50 Because the Company measures the Holder Redemption Option at fair value on a recurring basis, transfers, if any, between the levels of the fair value hierarchy are recognized at the end of the fiscal quarter in which the change in circumstances that caused the transfer occurred. There were no transfers between Level 1, 2 or 3 liabilities during the thirteen weeks ended April 2, 2016 or during the fiscal year ended January 2, 2016. In connection with the acquisition of the Farncombe Entities, the Company recorded a liability related to the Earn-Out portion of the purchase consideration. See Note 2, Acquisition, for further discussion of the Earn-Out liability. The Company has classified the Earn-Out liability as a Level 3 liability and the fair value of the Earn-Out liability will be evaluated each reporting period and changes in its fair value will be included in the Company’s results of operations. The fair value of the Earn-Out liability was calculated using a Monte Carlo simulation using a risk-adjusted discount rate applied to management’s estimate of forecasted revenues that are eligible under the Earn-Out as described in the Purchase Agreement. To determine the fair value of the Earn-Out liability, management evaluates assumptions that require significant judgment. Changes in certain inputs to the valuation model, including the Company’s estimate of future revenues, can have a significant impact on the estimated fair value. The fair value recorded for the Earn-Out liability may vary significantly from period to period. This variability may result in the actual liability for a period either above or below the estimates recorded in the Company’s Consolidated Financial Statements, resulting in significant fluctuations in results of operations as a result of the corresponding non-cash gain or loss recorded. Because the Company measures the Earn-Out liability at fair value on a recurring basis transfers, if any, between the levels of the fair value hierarchy are recognized at the end of the fiscal quarter in which the change in circumstances that caused the transfer occurred. There were no transfers between Level 1, 2 or 3 liabilities during the thirteen weeks ended April 2, 2016 or during the fiscal year ended January 2, 2016. Quoted prices Significant Significant Total Level 1 Level 2 Level 3 April 2, 2016: Holder Redemption Option $ 879 $ – $ – $ 879 Earn-Out Liability $ 1,928 $ – – $ 1,928 January 2, 2016: Holder Redemption Option $ 952 $ – $ – $ 952 Earn-Out Liability $ 2,176 $ – – $ 2,176 Holder Earn-Out Fair value at January 2, 2016 $ 952 $ 2,176 Decrease in fair value (73) (248) Fair value at April 2, 2016 $ 879 $ 1,928 Other Fair Value Disclosures The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair values because of the relatively short-term maturities of these financial instruments.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	10. Commitments and Contingencies The Company is not subject to any material litigation as of April 2, 2016. However, 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. When management has determined that it is probable that an asset has been impaired or a liability had been incurred related to an action, claim or assessment and the amount of loss can be reasonably estimated, the Company will record a liability for such estimated loss in the appropriate accounting period. 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 years 2013 and 2014, the Company recorded liabilities relating to a series of awards made by the arbitrator in a claim by a former executive officer of the Company for severance, attorneys’ fees and costs and pre-judgment interest. The final award amount was $ 1.7 2015 During the first quarter of fiscal 2015, the Company renewed an agreement under which it had a commitment to purchase a minimum of $ 412,000 318,000 In conjunction with the acquisition of the Farncombe Entities on July 22, 2015, the Company has recognized a liability of $ 1,928,000

Common Stock Repurchase Program

Common Stock Repurchase Program	3 Months Ended
	Apr. 02, 2016
Equity [Abstract]
Common Stock Repurchase [Text Block]	11. Common Stock Repurchase Program On June 3, 2015, the Company’s Board of Directors authorized an amendment to the Company’s previously announced stock repurchase program to extend the program through June 30, 2016. The program was initially authorized in February 2014 and authorized the Company to repurchase up to $ 2 pany entered into a R ule 10b5-1 plan, which permitted stock repurchases when the Company might otherwise have been precluded from doing so under insider trading laws or because of self-imposed trading blackout periods. The rule 105b5-1 plan expired on March 1, 2016. The Company did not repurchase any shares under the stock repurchase program during the thirteen weeks ended April 2, 2016 or April 4, 2015. Through April 2, 2016, approximately $ 1,838,000

Exit and Disposal Activities

Exit and Disposal Activities	3 Months Ended
	Apr. 02, 2016
Discontinued Operations and Disposal Groups [Abstract]
Exit and Disposal Activities [Text Block]	12. Exit and Disposal Activities In fiscal 2015, the Company took steps to discontinue use of its leased facilities in McLean, Virginia. The space is leased under an operating lease with a term expiring in July 2019. It is comprised of 4,823 Exit or Disposal Cost Obligations” 282,000 134,000 148,000

Subsequent Event

Subsequent Event	3 Months Ended
	Apr. 02, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	13. Subsequent Event On April 22, 2016, the Company entered into a Factoring Agreement ("Factoring Agreement") with RTS Financial Service, Inc. ("RTS"). Pursuant to the terms of the Factoring Agreement, the Company may offer for sale, and RTS may purchase, certain accounts receivable of the Company on an account by account basis (such purchased accounts, the "Purchased Accounts"). Under the Factoring Agreement, upon purchase RTS becomes the absolute owner of the Purchased Accounts, which are payable directly to RTS, subject to certain repurchase obligations of the Company. RTS' fee for each Purchased Account is computed on a daily basis until the amount of the Purchased Account is paid to RTS, and equals the amount of the Purchased Account multiplied by the sum of the prime rate then in effect plus 6.49% divided by 360. Upon purchase of a Purchased Account, RTS will pay to the Company the amount of the Purchased Account, less a reserve of 20% of that amount, which reserve (less the daily fee) is payable to the Company upon collection of the Purchased Account by RTS. The Company's obligations under the Factoring Agreement are secured by all present and future accounts receivable and related assets, equipment and inventory of the Company, other than to the extent such assets are pledged pursuant to certain existing agreements of the Company and other than assets of the Company's subsidiaries. RTS may require the Company to repurchase a Purchased Account if the Company breaches any warranty or otherwise violates or defaults on any of its obligations under the Factoring Agreement or if the Purchased Account is not paid in full on or before the payment due date of such Purchased Account. The Factoring Agreement has an initial term of 24 months and automatically renews for successive 12-month renewal periods unless terminated at the end of the initial term or renewal terms. The Company may terminate the Factoring Agreement at any time upon payment of an early termination fee or if RTS declines to purchase a specified percentage of accounts presented by the Company for purchase. RTS may terminate the Factoring Agreement upon 90 days notice to the Company and upon certain other events.

Basis of Reporting (Policies)

Basis of Reporting (Policies)	3 Months Ended
	Apr. 02, 2016
Accounting Policies [Abstract]
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition Revenue Recognition - Construction-Type and Production-Type Contracts 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, the Company revises its 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.
Managed Services Implementation Revenues And Costs Policy [Policy Text Block]	Managed Services Implementation Revenues and Costs 97,000 140,000 229,000
Research, Development, and Computer Software, Policy [Policy Text Block]	Research and Development and Software Development Costs 122,000 208,000 147,000 177,000
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Foreign Currency Transactions and Translation 6.0 5.5 74,000 168,000
Earnings Per Share, Policy [Policy Text Block]	Loss Per Share 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, non-vested shares and warrants. The employee stock options, non-vested shares and warrants 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. For the thirteen weeks ended April 2, 2016 and April 4, 2015, approximately 7,000 207,389
Accounts Receivable Policy [Policy Text Block]	A ccounts Receivable “Transfers and Servicing – Sales of Financial Assets” 4.4 5.8
Inventory, Policy [Policy Text Block]	Inventory Inventory 0.6
Property, Plant and Equipment, Policy [Policy Text Block]	Long-lived assets
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases” which, for operating leases, requires a lessee to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in its balance sheet. The standard also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, on a generally straight-line basis. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently evaluating the effects that the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” which requires deferred tax liabilities and assets to be classified as noncurrent in entities’ balance sheets. Under current accounting principles generally accepted in the United States of America (“U.S. GAAP”), an entity is required to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11 which requires entities to measure most inventory at the lower of cost and net realizable value thereby simplifying the existing guidance which required entities to measure inventory at the lower of cost or market. Under the current guidance, market is defined as replacement cost, net realizable value or net realizable value less a normal profit margin. The newly issued guidance eliminates the requirement to determine replacement cost and defines net realizable value as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. This new guidance is effective for the Company beginning in fiscal 2017. The Company does not expect the adoption of this standard update will have a material effect on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, which provides guidance on a customer’s accounting for cloud computing costs. Under the ASU, a customer must determine whether a cloud computing arrangement contains a software license. If so, the customer would account for the fees related to the software license element in a manner consistent with how the acquisition of other software licenses is accounted for under current U.S. GAAP. If the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. The ASU does not prescribe how to account for cloud computing arrangements deemed to be service contracts. An arrangement would contain a software license element if both of the following criteria are met: the customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty; and it is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software. The ASU is effective for annual periods (and interim periods therein) beginning after December 15, 2015. Entities may adopt the guidance retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. The Company prospectively adopted this guidance in its first quarter of fiscal 2016 and the adoption did not have a material impact on its consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The standard update resolves the diverse accounting treatment for these share-based payments by requiring that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The provisions of FASB ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company adopted this guidance in its first quarter of fiscal 2016 and the adoption did not have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This standard update clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. The standard update intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. Upon adoption of this standard update, we expect that the allocation and timing of revenue recognition will be impacted. In July 2015 the FASB voted to defer the effective date of this new standard by one year and to permit early adoption beginning as of the original effective date of the new standard. The provisions of FASB ASU 2014-09 will now be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and are to be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact that this standard update will have on its consolidated financial statements.

Acquisition (Tables)

Acquisition (Tables)	3 Months Ended
	Apr. 02, 2016
Business Combinations [Abstract]
Schedule Of Purchase Price Transferred To Acquire [Table Text Block]	The total purchase price transferred to effect the acquisition of the Farncombe Entities was as follows: (in thousands) Cash paid at closing $ 1,015 Equity issued at closing 2,036 Fair value of contingent consideration 1,921 Working capital adjustment 2,485 Total purchase price $ 7,457
Schedule Of Purchase Price Allocation Assets Acquired Liabilities Assumed [Table Text Block]	Total purchase consideration was allocated to the tangible and intangible assets and to liabilities assumed based on their respective acquisition-date fair values. The purchase price allocation is summarized in the following table: (in thousands) Tangible assets and liabilities Cash $ 1,378 Accounts receivable, net 4,627 Other current assets 191 Other non-current assets 137 Accounts payable (1,874) Accrued payroll and related expenses (796) Other current liabilities (636) Non-current deferred tax liability (264) Intangible assets 1,260 Goodwill 3,434 Net assets acquired $ 7,457
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]	The following table summarizes the major classes of intangible assets, as well as the respective weighted-average amortization periods: Weighted- Amount Amortization (in thousands) (Years) Identifiable Intangible Assets Tradename $ 90 0.5 Non-compete agreements 60 4.5 Customer relationships 1,110 3.5 Total identifiable intangible assets $ 1,260
Business Acquisition, Pro Forma Information [Table Text Block]	The basic and diluted shares outstanding used to calculate the pro forma net loss per share amount presented below have been adjusted to assume shares issued at the closing of the acquisition of the Farncombe Entities were outstanding since the beginning of fiscal 2015. Dollars in thousands except per share data Thirteen April 4, 2015 Revenue $ 22,012 Net loss $ (871) Net loss per share $ (0.10) Weighted-average shares used in calculation of pro forma net (loss) income per share: Basic and diluted shares outstanding 8,679

Goodwill and Intangible Asset (

Goodwill and Intangible Asset (Tables)	3 Months Ended
	Apr. 02, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill [Table Text Block]	The changes in the carrying amount of goodwill for the thirteen weeks ended April 2, 2016 are as follows (in thousands): North America EMEA Total Balance as of January 2, 2016 $ 3,947 $ 7,124 $ 11,071 Changes in foreign currency exchange rates – (200) (200) Balance as of April 2, 2016 $ 3,947 $ 6,924 $ 10,871
Schedule of Intangible Assets and Goodwill [Table Text Block]	The following table summarizes the changes in the major classes of intangible assets as of April 2, 2016 and January 2, 2016 (in thousands): Non-Compete Customer Tradename Agreements Relationships Total Gross Carrying Amount: Balance as of January 2, 2016 $ 86 $ 57 $ 1,055 $ 1,198 Changes in foreign currency exchange rates (3) (2) (29) (34) Balance as of April 2, 2016 $ 83 $ 55 $ 1,026 $ 1,164 Accumulated Amortization: Balance as of January 2, 2016 $ (71) $ (5) $ (126) $ (202) Changes in foreign currency exchange rates 1 – 3 4 Amortization expense (13) (3) (73) (89) Balance as of April 2, 2016 $ (83) $ (8) $ (196) $ (287)
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	The following table outlines the estimated future amortization expense related to amortizing intangible assets as of April 2, 2016. (in thousands) 2016 (April 3, 2016 – December 31, 2016) $ 229 2017 305 2018 305 2019 37 2020 1 $ 877

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Apr. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule Of Valuation Techniques For Market Condition Stock Option Award By Vesting Tranche [Table Text Block]	The fair value and derived service periods calculated for this market condition stock option award by vesting tranche were as follows: Grant Date Fair Derived Service $4.00 market condition tranche $ 1.95 151 $5.00 market condition tranche $ 1.95 262 $6.00 market condition tranche $ 1.99 362
Service-Based Stock Option Awards [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 service-based stock option activity under the Equity Plan, as of April 2, 2016 and changes during the thirteen weeks then ended is presented below: Shares Weighted Outstanding at January 2, 2016 244,553 $ 8.06 Exercised Forfeited/cancelled (15,540) $ 10.52 Outstanding at April 2, 2016 229,013 $ 7.89 Options vested and expected to vest at April 2, 2016 224,013 $ 7.97 Options exercisable at April 2, 2016 204,012 $ 8.37
Schedule of Nonvested Share Activity [Table Text Block]	A summary of the status of performance-based non-vested share awards issued under the Equity Plan, as of April 2, 2016 presented below: Weighted Grant Date Shares Fair Value per Outstanding at January 2, 2016 250,215 $ 3.15 Outstanding at April 2, 2016 250,215 $ 3.15
Market Condition Stock Option Awards [Member]
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule Of Valuation Techniques For Market Condition Stock Option Award By Vesting Tranche [Table Text Block]	A summary of the market condition stock option activity under the Equity Plan, as of April 2, 2016 and changes during the thirteen weeks then ended is presented below: Shares Weighted Outstanding at January 2, 2016 200,000 $ 3.34 Outstanding at April 2, 2016 200,000 $ 3.34 Options vested and expected to vest at April 2, 2016 200,000 $ 3.34 Options exercisable at April 2, 2016 – $ –
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 April 2, 2016 and changes during the thirteen weeks then ended is presented below: Shares Weighted Outstanding at January 2, 2016 36,900 $ 11.11 Forfeited/cancelled (5,700) $ 12.02 Outstanding at April 2, 2016 31,200 $ 10.95 Options vested and exercisable at April 2, 2016 31,200 $ 10.95

Supplemental Balance Sheet In23

Supplemental Balance Sheet Information (Tables)	3 Months Ended
	Apr. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Accrued payroll, bonuses and related expenses and Other accrued liabilities consist of the following (amounts in thousands): April 2, 2016 January 2, 2016 Accrued payroll, bonuses and related expenses Accrued payroll $ 796 $ 448 Accrued bonuses 1,737 3,205 Accrued payroll taxes 1,444 636 Accrued vacation 851 539 Other 247 297 $ 5,075 $ 5,125 Other accrued liabilities Sales and value-added taxes payable $ 752 $ 478 Lease termination liability 133 135 Put option liability 102 102 Accrued income taxes 528 376 Accrued professional fees 140 604 Other 562 229 $ 2,217 $ 1,924

Business Segments and Major C24

Business Segments and Major Customers (Tables)	3 Months Ended
	Apr. 02, 2016
Segment Reporting [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 Allocated Strategic to North America EMEA Alliances Segments Total As of and for the thirteen weeks ended April 2, 2016: Revenues $ 8,513 $ 11,702 $ 102 $ – $ 20,317 Income (loss) from operations 1,754 1,477 (76) (3,899) (744) Total assets $ 6,993 11,627 625 20,092 39,337 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 thirteen weeks ended April 4, 2015: Revenues $ 7,918 $ 10,025 $ 107 $ - $ 18,050 Income (loss) from operations 1,789 2,072 (352) (4,137) (628) Total assets $ 6,647 $ 4,115 $ 3,000 $ 26,918 $ 40,680
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 Ended April 2, April 4, 2016 2015 United States $ 8,715 $ 7,920 International: United Kingdom 10,960 9,713 Other 642 417 Total $ 20,317 $ 18,050
Long-lived Assets by Geographic Areas [Table Text Block]	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 April 2, January 2, 2016 2016 United States $ 2,585 $ 2,611 United Kingdom 347 346 France 12 12 Total $ 2,944 $ 2,969
Schedule of Revenue and Accounts Receivable by Major Customers by Reporting Segments [Table Text Block]	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 thirteen weeks For the thirteen weeks ended April 2, 2016 ended April 4, 2015 North North America EMEA America EMEA Customer A $ 4,426 $ 4,142 Customer B $ 3,273 $ 3,374 Customer C 3,005 $ 4,750 Accounts Receivable As of As of April 2, 2016 April 4, 2015 Customer A $ 3,812 $ 2,022 Customer B $ 2,255 $ 2,573 Customer C $ 2,544 $ 736

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 02, 2016
Fair Value Disclosures [Abstract]
Schedule Of Fair Value Assumptions And Methodology [Table Text Block]	The following table sets forth the Level 3 inputs to the binomial lattice model that were used to determine the fair value of the Note and the Holder Redemption Option: April 2, 2016 January 2, 2016 Common stock price $ 2.23 $ 2.22 Dividend yield 0.0 % 0.0 % Expected term 0.5 years 0.75 years Risk-free interest rate 0.9 % 1.3 % Estimated stock volatility 46.9 % 45.0 %
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]	As of April 2, 2016 and January 2, 2016, liabilities recorded at fair value on a recurring basis consist of the following (in thousands): Quoted prices Significant Significant Total Level 1 Level 2 Level 3 April 2, 2016: Holder Redemption Option $ 879 $ – $ – $ 879 Earn-Out Liability $ 1,928 $ – – $ 1,928 January 2, 2016: Holder Redemption Option $ 952 $ – $ – $ 952 Earn-Out Liability $ 2,176 $ – – $ 2,176
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	The following table summarizes the year-to-date changes to the fair value of the Holder Redemption Option and Earn-Out liability, which are Level 3 liabilities (in thousands): Holder Earn-Out Fair value at January 2, 2016 $ 952 $ 2,176 Decrease in fair value (73) (248) Fair value at April 2, 2016 $ 879 $ 1,928

Basis of Reporting (Details Tex

Basis of Reporting (Details Textual) - USD ($)	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Accounting Policies [Line Items]
Implementation Costs		$ 97,000
Foreign currency translation adjustment	$ 6,000,000		$ 5,500,000
Foreign Currency Transaction Gain (Loss), before Tax	74,000	168,000
Inventory, Net	625,000		625,000
Trade Receivables, Third Party	4,400,000		5,800,000
Capitalized Computer Software, Gross	147,000	177,000
Capitalized Software Development Costs For Internal Use	122,000	$ 208,000
Unamortized deferred implementation costs	$ 140,000		$ 229,000
Stock Compensation Plan [Member]
Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	7,000	207,389

Acquisition (Detail)

Acquisition (Detail) - Farncombe Entities [Member] $ in Thousands	Jul. 22, 2015USD ($)
Cash paid at closing	$ 1,015
Equity issued at closing	2,036
Fair value of contingent consideration	1,921
Working capital adjustment	2,485
Total purchase price	$ 7,457

Acquisition (Details 1)

Acquisition (Details 1) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016	Jul. 22, 2015
Goodwill	$ 10,871	$ 11,071
Farncombe Entities [Member]
Cash			$ 1,378
Accounts receivable, net			4,627
Other current assets			191
Other non-current assets			137
Accounts payable			(1,874)
Accrued payroll and related expenses			(796)
Other current liabilities			(636)
Non-current deferred tax liability			(264)
Intangible assets			1,260
Goodwill			3,434
Net assets acquired			$ 7,457

Acquisition (Details 2)

Acquisition (Details 2) $ in Thousands	Jul. 22, 2015USD ($)
Finite-lived Intangible Assets Acquired	$ 1,260
Noncompete Agreements [Member]
Finite-lived Intangible Assets Acquired	$ 60
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	4 years 6 months
Customer Relationships [Member]
Finite-lived Intangible Assets Acquired	$ 1,110
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	3 years 6 months
Trade Name [Member]
Finite-lived Intangible Assets Acquired	$ 90
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	6 months

Acquisition (Details 3)

Acquisition (Details 3) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 04, 2015USD ($)$ / sharesshares
Revenue	$ 22,012
Net loss	$ (871)
Net loss per share | $ / shares	$ (0.1)
Weighted-average shares used in calculation of pro forma net (loss) income per share:
Basic and diluted shares outstanding | shares	8,679

Acquisition (Details Textual)

Acquisition (Details Textual)	Jul. 22, 2015USD ($)$ / sharesshares	Jul. 22, 2015GBP (£)shares	Mar. 31, 2016USD ($)	Mar. 31, 2016GBP (£)	Mar. 31, 2016EUR (€)	Oct. 31, 2015USD ($)	Apr. 02, 2016USD ($)shares	Apr. 02, 2016GBP (£)	Mar. 31, 2016USD ($)	Oct. 03, 2015USD ($)	Oct. 03, 2015GBP (£)	Apr. 04, 2015USD ($)	Jan. 02, 2016USD ($)	Jul. 22, 2015GBP (£)£ / shares
Purchase Price Related to Working Capital Adjustment	$ 1,000,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	588,567	588,567
Percentage of Business Acquisition Purchase Price														30.00%
Business Acquisition, Pro Forma Adjustment for Intangible Asset Amortization Expense												$ 103,000
Purchase Agreement [Member]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	$ 2,000,000	£ 1,308,186							$ 2,100,000
Payments to Acquire Businesses, Gross	1,000,000	654,093
Business Combination, Consideration Transferred, Total	$ 6,800,000	£ 4,360,620
Percentage of Business Acquisition Purchase Price														15.00%
Exchange Rate Utilized							based on an exchange rate of £1.000 = US$1.556	based on an exchange rate of £1.000 = US$1.556
Share Price | (per share)	$ 3.46													£ 2.22
Cash [Member]
Percentage of Business Acquisition Purchase Price														15.00%
Earn Out Consideration [Member]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable						$ 654,093	$ 1,500,000
Percentage of Business Acquisition Purchase Price														40.00%
Business Acquisition Potential Cash Payment | £														£ 719,483
Business Acquisition Shares issuable | shares							461,055
Earn Out Consideration [Member] | Purchase Agreement [Member]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable			$ 300,000	£ 184,000	€ 12,000		$ 248,000	£ 1,024,765
Payments to Acquire Businesses, Gross										$ 1,000,000
Purchase Price Related to Working Capital Adjustment										$ 1,100,000	£ 743,753
Exchange Rate Utilized										based on an exchange rate of £1.000 = US$1.556	based on an exchange rate of £1.000 = US$1.556
Business Combination, Contingent Consideration Arrangements, Basis for Amount										Amounts, if any, payable under the Earn-Out are based upon the amounts of specified revenues attributable to the Farncombe Entities after June 1, 2015 through July 22, 2017	Amounts, if any, payable under the Earn-Out are based upon the amounts of specified revenues attributable to the Farncombe Entities after June 1, 2015 through July 22, 2017
Business Combination, Contingent Consideration, Liability, Total							$ 1,928,000						$ 2,176,000

Strategic Alliance and Invest32

Strategic Alliance and Investment by Elutions, Inc. (Details Textual) - USD ($)	Mar. 18, 2014	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Price Per Share Of Stock On Tracking Warrant		$ 5.50
Notes Payable, Current		$ 3,269,000		$ 3,269,000
Estimated License Payments		1,200,000
Due from Related Parties		$ 400,000
Interest Rate In Advance Payments		5.50%
Monthly Expense Labor		$ 36,750
Labor and Related Expense		98,500	$ 110,000
Other Assets, Noncurrent		$ 442,000		458,000
Outstanding Shares Percentage		6.50%
Outstanding Shares Percentage Two		38.50%
Non Convertible Promissory Note [Member]
Notes Payable, Fair Value Disclosure		$ 3,034,000		3,004,000
Incentive Warrant [Member]
Warrants Issued to Purchase Common Stock		3,400,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares		4,086	24,786
Share Based Compensation Arrangement By Share Based Payment Award Vested Shares Recognized Expenses		$ 7,000	$ 38,000
Incentive Warrant [Member] | Non Convertible Promissory Note [Member]
Debt Instrument, Maturity Date		Mar. 18, 2019
Elutions, Inc [Member]
Debt Instrument, Face Amount		$ 3,268,664
Due from Related Parties		300,000		300,000
Other Assets, Current		100,000		100,000
Other Assets, Noncurrent		200,000		200,000
Elutions, Inc [Member] | Inventories [Member]
Payment To Acquire Inventory		3,000,000
Purchase Obligation, Total		$ 3,000,000
Elutions, Inc [Member] | Non Convertible Promissory Note [Member]
Debt Instrument, Interest Rate, Stated Percentage		7.825%
Debt Instrument Debt Default Interest Rate Percentage		9.825%
Debt Instrument, Maturity Date		Mar. 18, 2019
Notes Payable, Current		$ 3,269,000		$ 3,269,000
Interest Expense, Debt		63,000	$ 63,000
Elutions, Inc [Member] | Non Convertible Promissory Note [Member] | Strategic Alliance and Investment [Member]
Debt Instrument, Face Amount		$ 3,268,664
Price Per Share Of Stock On Tracking Warrant		$ 5.50
Elutions, Inc [Member] | Common Stock [Member]
Stock Issued During Period, Shares, New Issues	609,756
Shares Issued, Price Per Share		3.28
Stock Issued During Period, Value, New Issues	$ 2,000,000
Elutions, Inc [Member] | Tracking Warrant [Member]
Warrants Issued During Period Exercise Price	$ 3.28
Price Per Share Of Stock On Tracking Warrant		$ 5.50
Warrants Issued to Purchase Common Stock		996,544
Elutions, Inc [Member] | Tracking Warrant [Member] | Strategic Alliance and Investment [Member]
Warrants Issued During Period Exercise Price	$ 3.28
Price Per Share Of Stock On Tracking Warrant		$ 5.50
Warrants Issued to Purchase Common Stock		996,544
Elutions, Inc [Member] | Incentive Warrant [Member]
Warrants Issued During Period Exercise Price Increases Per Year		$ 0.25
Warrants Issued During Period Expiration Date		Mar. 18, 2020
Warrants Issued to Purchase Common Stock	3,400,000
Elutions, Inc [Member] | Incentive Warrant [Member] | Minimum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 3.85		$ 3.85
Elutions, Inc [Member] | Incentive Warrant [Member] | Maximum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 4.85		$ 4.85

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2016USD ($)
Goodwill [Line Items]
Balance as of January 2, 2016	$ 11,071
Changes in foreign currency exchange rates	(200)
Balance as of April 2, 2016	10,871
North America [Member]
Goodwill [Line Items]
Balance as of January 2, 2016	3,947
Changes in foreign currency exchange rates	0
Balance as of April 2, 2016	3,947
EMEA [Member]
Goodwill [Line Items]
Balance as of January 2, 2016	6,924
Changes in foreign currency exchange rates	(200)
Balance as of April 2, 2016	$ 7,124

Goodwill and Intangible Asset34

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Gross Carrying Amount:
Balance as of January 2, 2016	$ 1,198
Changes in foreign currency exchange rates	(34)
Balance as of April 2, 2016	1,164
Accumulated Amortization:
Balance as of January 2, 2016	(202)
Changes in foreign currency exchange rates	4
Amortization expense	89	$ 0
Balance as of April 2, 2016	(287)
Noncompete Agreements [Member]
Gross Carrying Amount:
Balance as of January 2, 2016	57
Changes in foreign currency exchange rates	(2)
Balance as of April 2, 2016	55
Accumulated Amortization:
Balance as of January 2, 2016	(5)
Changes in foreign currency exchange rates	0
Amortization expense	(3)
Balance as of April 2, 2016	(8)
Customer Relationships [Member]
Gross Carrying Amount:
Balance as of January 2, 2016	1,055
Changes in foreign currency exchange rates	(29)
Balance as of April 2, 2016	1,026
Accumulated Amortization:
Balance as of January 2, 2016	(126)
Changes in foreign currency exchange rates	3
Amortization expense	(73)
Balance as of April 2, 2016	(196)
Trade Names [Member]
Gross Carrying Amount:
Balance as of January 2, 2016	86
Changes in foreign currency exchange rates	(3)
Balance as of April 2, 2016	83
Accumulated Amortization:
Balance as of January 2, 2016	(71)
Changes in foreign currency exchange rates	1
Amortization expense	(13)
Balance as of April 2, 2016	$ (83)

Goodwill and Intangible Asset35

Goodwill and Intangible Assets (Details 2) $ in Thousands	Apr. 02, 2016USD ($)
Schedule Of Finite Lived Intangible Assets Future Amortization Expense [Line Items]
2,016	$ 229
2,017	305
2,018	305
2,019	37
2,020	1
Finite-Lived Intangible Assets, Net, Total	$ 877

Goodwill and Intangible Asset36

Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	Jul. 22, 2015	Apr. 02, 2016	Apr. 04, 2015
Goodwill [Line Items]
Amortization of Intangible Assets		$ 89	$ 0
Farncombe Entities [Member]
Goodwill [Line Items]
Goodwill, Acquired During Period	$ 3,400

Share-Based Compensation (Detai

Share-Based Compensation (Details)	3 Months Ended
	Apr. 02, 2016$ / sharesshares
Service-Based Stock Option Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding (in shares) | shares	244,553
Shares, Exercised (in shares) | shares	0
Shares, Forfeited/cancelled (in shares) | shares	(15,540)
Shares, Outstanding (in shares) | shares	229,013
Shares, Options vested and expected to vest (in shares) | shares	224,013
Shares, Options exercisable (in shares) | shares	204,012
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ / shares	$ 8.06
Weighted Average Exercise Price, Exercised (in dollars per share) | $ / shares	0
Weighted Average Exercise Price, Forfeited/cancelled (in dollars per share) | $ / shares	10.52
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ / shares	7.89
Weighted Average Exercise Price, Options vested and expected to vest (in dollars per share) | $ / shares	7.97
Weighted Average Exercise Price, Options exercisable (in dollars per share) | $ / shares	$ 8.37
Market Condition Stock Option Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding (in shares) | shares	200,000
Shares, Outstanding (in shares) | shares	200,000
Shares, Options vested and expected to vest (in shares) | shares	200,000
Shares, Options exercisable (in shares) | shares	0
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ / shares	$ 3.34
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ / shares	3.34
Weighted Average Exercise Price, Options vested and expected to vest (in dollars per share) | $ / shares	3.34
Weighted Average Exercise Price, Options exercisable (in dollars per share) | $ / shares	$ 0
Supplemental Stock Plan 2000 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding (in shares) | shares	36,900
Shares, Forfeited/cancelled (in shares) | shares	(5,700)
Shares, Outstanding (in shares) | shares	31,200
Shares, Options vested and expected to vest (in shares) | shares	31,200
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ / shares	$ 11.11
Weighted Average Exercise Price, Forfeited/cancelled (in dollars per share) | $ / shares	12.02
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ / shares	10.95
Weighted Average Exercise Price, Options vested and expected to vest (in dollars per share) | $ / shares	$ 10.95

Share-Based Compensation (Det38

Share-Based Compensation (Details 1)	3 Months Ended
	Apr. 02, 2016$ / shares
Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Exercise Price, Beginning Balance	$ 1.95
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	151 days
Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Exercise Price, Beginning Balance	$ 1.95
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	262 days
Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Exercise Price, Beginning Balance	$ 1.99
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	362 days

Share-Based Compensation (Det39

Share-Based Compensation (Details 2) - Equity Incentive Plan [Member] - Service Based Non vested Share Awards [Member]	Apr. 02, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding (in shares) | shares	250,215
Shares, Outstanding (in shares) | shares	250,215
Weighted Average Grant Date Fair Value, Outstanding (in dollars per share) | $ / shares	$ 3.15
Weighted Average Grant Date Fair Value, Outstanding (in dollars per share) | $ / shares	$ 3.15

Share-Based Compensation (Det40

Share-Based Compensation (Details Textual) - USD ($)	Jul. 22, 2015	Jun. 03, 2015	Apr. 08, 2013	Jun. 16, 2015	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized					$ 14,000		$ 20,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition					24 months
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense					$ 7,000	$ 15,000
Share-based Compensation, Total					133,000	301,000
Other Accrued Liabilities, Current					$ 2,217,000		1,924,000
Share-based Compensation Arrangement by Share-based Payment Award, Description	If the vesting percentage is less than 100% on the vesting date, that percentage of the non-vested stock that does not vest of the vesting date shall be forfeited.
Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Option Vesting upon Price Target				75,000
Share Price Target				$ 4	$ 4
Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Option Vesting upon Price Target				75,000
Share Price Target				$ 5	5
Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Option Vesting upon Price Target				50,000
Share Price Target				$ 6	$ 6
Put Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other Accrued Liabilities, Current					$ 102,000		$ 102,000
Share Price					$ 4.50
Put Option Issued		112,692
Put Option Issued, Strike Price		$ 4.50
Put Option Exercise Amount					$ 85,000	90,036
Number Of Options Exercised					19,000
Executive Officers And Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			800,000
Two Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	58,940
Performance Based Non vested Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Grant Date Fair Value, Granted (in dollars per share)			$ 3.14
Allocated Share-based Compensation Expense					$ 56,000	216,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition					12 months
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options					$ 200,000
Earnings Before Income Tax And Dividends			$ 14,000,000
Market Condition Stock Option Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense					65,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized					$ 77,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition					8 months
Service-Based Stock Option Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation, Total					$ 5,000	$ 25,000
Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Increases Decreases in Period						500,000
Cumulative Number Of Shares Of Common Stock Available For Issuance Before Amendment				2,305,659
Cumulative Number Of Shares Of Common Stock Available For Issuance After Amendment					2,805,659
Equity Incentive Plan [Member] | Market Condition Stock Option Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross				200,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price				$ 3.34

Supplemental Balance Sheet In41

Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Accrued payroll, bonuses and related expenses
Accrued payroll	$ 796	$ 448
Accrued bonuses	1,737	3,205
Accrued payroll taxes	1,444	636
Accrued vacation	851	539
Other	247	297
Employee-related Liabilities, Current	5,075	5,125
Other accrued liabilities
Sales and value-added taxes payable	752	478
Lease termination liability	133	135
Put option liability	102	102
Accrued income taxes	528	376
Accrued professional fees	140	604
Other	562	229
Other Accrued Liabilities, Current	$ 2,217	$ 1,924

Business Segments and Major C42

Business Segments and Major Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Segment Reporting Information [Line Items]
Revenues	$ 20,317	$ 18,050
Income (loss) from operations	(744)	(628)
Total assets	39,337	40,680	$ 41,359
North America [Member]
Segment Reporting Information [Line Items]
Revenues	8,513	7,918
Income (loss) from operations	1,754	1,789
Total assets	6,993	6,647	6,831
EMEA [Member]
Segment Reporting Information [Line Items]
Revenues	11,702	10,025
Income (loss) from operations	1,477	2,072
Total assets	11,627	4,115	9,725
Strategic Alliances [Member]
Segment Reporting Information [Line Items]
Revenues	102	107
Income (loss) from operations	(76)	(352)
Total assets	625	3,000	626
Not Allocated Amount To Segment [Member]
Segment Reporting Information [Line Items]
Revenues	0	0
Income (loss) from operations	(3,899)	(4,137)
Total assets	$ 20,092	$ 26,918	$ 24,177

Business Segments and Major C43

Business Segments and Major Customers (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Segment Reporting Information [Line Items]
Revenues	$ 20,317	$ 18,050
United States [Member]
Segment Reporting Information [Line Items]
Revenues	8,715	7,920
United Kingdom [Member]
Segment Reporting Information [Line Items]
Revenues	10,960	9,713
Other [Member]
Segment Reporting Information [Line Items]
Revenues	$ 642	$ 417

Business Segments and Major C44

Business Segments and Major Customers (Details 2) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Segment Reporting Information [Line Items]
Long-Lived Assets	$ 2,944	$ 2,969
France [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	12	12
United States [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	2,585	2,611
United Kingdom [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	$ 347	$ 346

Business Segments and Major C45

Business Segments and Major Customers (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Segment Reporting Information [Line Items]
Revenues	$ 20,317	$ 18,050
Accounts Receivable, Net, Current, Total	18,611		$ 16,556
Customer A [Member]
Segment Reporting Information [Line Items]
Accounts Receivable, Net, Current, Total	3,812	2,022
Customer B [Member]
Segment Reporting Information [Line Items]
Accounts Receivable, Net, Current, Total	2,255	2,573
Customer C [Member]
Segment Reporting Information [Line Items]
Accounts Receivable, Net, Current, Total	2,544	736
North America [Member]
Segment Reporting Information [Line Items]
Revenues	8,513	7,918
North America [Member] | Customer A [Member]
Segment Reporting Information [Line Items]
Revenues	0	0
North America [Member] | Customer B [Member]
Segment Reporting Information [Line Items]
Revenues	3,273	3,374
North America [Member] | Customer C [Member]
Segment Reporting Information [Line Items]
Revenues	0	0
EMEA [Member]
Segment Reporting Information [Line Items]
Revenues	11,702	10,025
EMEA [Member] | Customer A [Member]
Segment Reporting Information [Line Items]
Revenues	4,426	4,142
EMEA [Member] | Customer B [Member]
Segment Reporting Information [Line Items]
Revenues	0	0
EMEA [Member] | Customer C [Member]
Segment Reporting Information [Line Items]
Revenues	$ 3,005	$ 4,750

Business Segments and Major C46

Business Segments and Major Customers (Details Textual)	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Segment Reporting Information [Line Items]
Entity Wide Information Percentage Revenue Contribution Top Ten Customers By Revenue Contribution	83.20%	90.80%

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016
Deferred Tax Assets And Liabilities [Line Items]
Income Tax Expense (Benefit)	$ 142	$ 170
Deferred Tax Assets, Valuation Allowance	$ 34,900		$ 34,100

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Issuance Date [Member] - $ / shares	3 Months Ended	12 Months Ended
	Apr. 02, 2016	Jan. 02, 2016
Fair Value Assumptions And Methodology [Line Items]
Common stock price	$ 2.23	$ 2.22
Dividend yield	0.00%	0.00%
Expected term	6 months	9 months
Risk-free interest rate	0.90%	1.30%
Estimated stock volatility	46.90%	45.00%

Fair Value Measurements (Deta49

Fair Value Measurements (Detail 1) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Holder Redemption Option	$ 879	$ 952
Earn-Out Liability	1,928	2,176
Fair Value, Inputs, Level 1 [Member]
Holder Redemption Option	0	0
Earn-Out Liability	0	0
Fair Value, Inputs, Level 2 [Member]
Holder Redemption Option	0	0
Earn-Out Liability	0	0
Fair Value, Inputs, Level 3 [Member]
Holder Redemption Option	879	952
Earn-Out Liability	$ 1,928	$ 2,176

Fair Value Measurements (Deta50

Fair Value Measurements (Detail 2) $ in Thousands	3 Months Ended
	Apr. 02, 2016USD ($)
Earn Out Liability [Member]
Fair value at January 3, 2015	$ 2,176
Decrease in fair value	(248)
Fair value at January 2, 2016	1,928
Holder Redemption Option [Member]
Fair value at January 3, 2015	952
Decrease in fair value	(73)
Fair value at January 2, 2016	$ 879

Fair Value Measurements (Deta51

Fair Value Measurements (Details Textual) - USD ($)	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Increases (Decrease) in fair value liability	$ 73,000	$ 125,000
Common stock exceed (in dollars per share)	$ 5.50

Commitments and Contingencies (

Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Jan. 02, 2016	Jul. 22, 2015
Purchase Commitment [Line Items]
Litigation Settlement, Amount		$ 1,700,000
Business Combination, Contingent Consideration, Liability, Current	$ 57,000		$ 327,000	$ 1,928,000
Software [Member]
Purchase Commitment [Line Items]
Long-Term Purchase Commitment, Amount		$ 412,000
Long-term Purchase Commitment, Amount Outstanding	318,000
Additional Long Term Purchase Commitment Amount	$ 95,000

Common Stock Repurchase Progr53

Common Stock Repurchase Program (Details Textual) - USD ($)	Apr. 02, 2016	Feb. 28, 2014
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Authorized Amount		$ 2,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 1,838,000

Exit and Disposal Activities (D

Exit and Disposal Activities (Details Textual)	Apr. 02, 2016USD ($)ft²	Jan. 02, 2016USD ($)
Lease termination obligation, Current	$ 133,000	$ 135,000
Property Subject to Operating Lease [Member]
Area of Land | ft²	4,823
Lease termination obligation	$ 282,000
Lease termination obligation, Current	134,000
Lease termination obligation, Noncurrent	$ 148,000

Subsequent Event (Details Textu

Subsequent Event (Details Textual)	1 Months Ended
	Apr. 30, 2016
Subsequent Event [Member]
Subsequent Event [Line Items]
Factoring Agreement, Description	equals the amount of the Purchased Account multiplied by the sum of the prime rate then in effect plus 6.49% divided by 360. Upon purchase of a Purchased Account, RTS will pay to the Company the amount of the Purchased Account, less a reserve of 20% of that amount, which reserve (less the daily fee) is payable to the Company upon collection of the Purchased Account by RTS.