10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended September 28, 2013

or

¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission file number: 001-34006

THE MANAGEMENT NETWORK GROUP, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	48-1129619
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
7300 COLLEGE BLVD., SUITE 302, OVERLAND PARK, KS	66210
(Address of principal executive offices)	(Zip Code)

913-345-9315

Registrant’s telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ      No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ     No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer ¨ (Do not check if a smaller reporting company) Smaller reporting company þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨     No þ

As of November 7, 2013, TMNG had outstanding 8,051,382 shares of common stock.

THE MANAGEMENT NETWORK GROUP, INC. INDEX

	PAGE
PART I. FINANCIAL INFORMATION:	3
ITEM 1. Condensed Consolidated Financial Statements (unaudited):	3
Condensed Consolidated Balance Sheets - September 28, 2013 and December 29, 2012	3
Condensed Consolidated Statements of Operations and Comprehensive Loss - Thirteen and Thirty-nine Weeks ended September 28, 2013 and September 29, 2012	4
Condensed Consolidated Statements of Cash Flows - Thirty-nine Weeks ended September 28, 2013 and September 29, 2012	5
Notes to Condensed Consolidated Financial Statements	6
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	18
ITEM 4. Controls and Procedures	19
PART II. OTHER INFORMATION	19
ITEM 1. Legal Proceedings	19
ITEM 1A. Risk Factors	19
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	19
ITEM 3. Defaults Upon Senior Securities	19
ITEM 4. Mine Safety Disclosures	19
ITEM 5. Other Information	19
ITEM 6. Exhibits	19
Signatures	20
Exhibits	21
Lease Agreement

2

 

PART I. FINANCIAL INFORMATION

ITEM 1.      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THE MANAGEMENT NETWORK GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

	September 28,		December 29,
	2013		2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	12,302	$	12,177
Accounts receivable, net		12,267		12,762
Prepaid and other current assets		891		658
Total current assets		25,460		25,597
NONCURRENT ASSETS:
Property and equipment, net		1,280		1,355
Goodwill		8,133		8,160
Other noncurrent assets		248		204
Total Assets	$	35,121	$	35,316
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade accounts payable	$	1,689	$	975
Accrued payroll, bonuses and related expenses		3,395		4,003
Deferred revenue		543		605
Other accrued liabilities		1,598		1,809
Total current liabilities		7,225		7,392
NONCURRENT LIABILITIES:
Deferred income tax liabilities		531		472
Other noncurrent liabilities		382		441
Total noncurrent liabilities		913		913
Commitments and contingencies (Note 6)
Total stockholders’ equity		26,983		27,011
Total Liabilities and Stockholders’ Equity	$	35,121	$	35,316

See notes to unaudited condensed consolidated financial statements.

3

 

THE MANAGEMENT NETWORK GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share data)

(unaudited)

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	September 28,		September 29,		September 28,		September 29,
	2013		2012		2013		2012
Revenues	$	13,393	$	12,733	$	41,440	$	40,077
Cost of services		8,350		7,814		25,940		25,018
Gross Profit		5,043		4,919		15,500		15,059
Selling, general and administrative expenses (includes non-cash share-based compensation expense of $234 and $3 for the thirteen weeks ended September 28, 2013 and September 29, 2012, respectively and $532 and $10 for the thirty-nine weeks ended September 28, 2013 and September 29, 2012, respectively)		4,994		4,748		16,023		16,429
Income (loss) from operations		49		171		(523)		(1,370)
Other income		1		1		3		8
Income (loss) before income taxes		50		172		(520)		(1,362)
Income tax provision		(20)		(30)		(59)		(90)
Net income (loss)		30		142		(579)		(1,452)
Other comprehensive income (loss):
Foreign currency translation adjustment		445		323		(3)		335
Comprehensive income (loss)	$	475	$	465	$	(582)	$	(1,117)
Net income (loss) per common share
Basic and diluted	$	0.00	$	0.02	$	(0.08)	$	(0.20)
Weighted average shares used in calculation of net income (loss) per common share
Basic		7,130		7,104		7,124		7,100
Diluted		7,216		7,107		7,124		7,100

See notes to unaudited condensed consolidated financial statements.

4

 

THE MANAGEMENT NETWORK GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

	For the Thirty-nine Weeks Ended
	September 28,		September 29,
	2013		2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(579)	$	(1,452)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation		503		589
Share-based compensation		533		10
Deferred tax expense		59		90
Other		(75)		10
Other changes in operating assets and liabilities:
Accounts receivable, net		547		(1,058)
Prepaid and other assets		(275)		243
Trade accounts payable		678		(35)
Deferred revenue		(61)		110
Accrued liabilities		(866)		(976)
Net cash provided by (used in) operating activities		464		(2,469)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment		(404)		(181)
Net cash used in investing activities		(404)		(181)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock through employee stock purchase plan		22		18
Net cash provided by financing activities		22		18
Effect of exchange rate on cash and cash equivalents		43		74
Net increase (decrease) in cash and cash equivalents		125		(2,558)
Cash and cash equivalents, beginning of period		12,177		13,250
Cash and cash equivalents, end of period	$	12,302	$	10,692
Supplemental disclosure of cash flow information:
Accrued property and equipment additions	$	176	$	302
Leasehold improvements acquired through lease incentive	$	113	$	-

See notes to unaudited condensed consolidated financial statements.

5

 

THE MANAGEMENT NETWORK GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. Basis of Reporting

The condensed consolidated financial statements and accompanying notes of The Management Network Group, Inc. and its subsidiaries (“TMNG,” “TMNG Global,” “we,” “us,” “our,” or the “Company”) as of September 28, 2013, and for the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012 are unaudited and reflect all normal recurring adjustments which are, in the opinion of management, necessary for the fair presentation of the Company’s condensed consolidated financial position, results of operations, and cash flows as of these dates and for the periods presented. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Consequently, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements nor those normally made in the Company’s Annual Report on Form 10-K. Accordingly, reference should be made to the Company’s annual consolidated financial statements and notes thereto for the fiscal year ended December 29, 2012, included in the Company’s 2012 Annual Report on Form 10-K (“2012 Form 10-K”) for additional disclosures, including a summary of the Company’s accounting policies. The Condensed Consolidated Balance Sheet as of December 29, 2012 has been derived from the audited Consolidated Balance Sheet at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Company has evaluated subsequent events for recognition or disclosure through the date these unaudited consolidated financial statements were issued.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of operations for the thirteen and thirty-nine weeks ended September 28, 2013 are not necessarily indicative of the results to be expected for the full year ending December 28, 2013.

Revenue Recognition - The Company recognizes revenue from time and materials consulting contracts in the period in which its services are performed. In addition to time and materials contracts, the Company's other types of contracts include fixed fee contracts. The Company recognizes revenues on milestone or deliverables-based fixed fee contracts and time and materials contracts not to exceed contract price using the percentage of completion-like method described by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605-35, "Revenue Recognition - Construction-Type and Production-Type Contracts". For fixed fee contracts where services are not based on providing deliverables or achieving milestones, the Company recognizes revenue on a straight-line basis over the period during which such services are expected to be performed. In connection with some fixed fee contracts, the Company may receive payments from customers that exceed revenues up to that point in time. The Company records the excess of receipts from customers over recognized revenue as deferred revenue. Deferred revenue is classified as a current liability to the extent it is expected to be earned within twelve months from the date of the balance sheet.

The FASB ASC 605-35 percentage-of-completion-like methodology involves recognizing revenue using the percentage of services completed, on a current cumulative cost to total cost basis, using a reasonably consistent profit margin over the period. Due to the longer term nature of these projects, developing the estimates of costs often requires significant judgment. Factors that must be considered in estimating the progress of work completed and ultimate cost of the projects include, but are not limited to, the availability of labor and labor productivity, the nature and complexity of the work to be performed, and the impact of delayed performance. If changes occur in delivery, productivity or other factors used in developing the estimates of costs or revenues, we revise our cost and revenue estimates, which may result in increases or decreases in revenues and costs, and such revisions are reflected in income in the period in which the facts that give rise to that revision become known.

The Company develops, installs and supports customer software in addition to its traditional consulting services. The Company recognizes revenue in connection with its software sales agreements under FASB ASC 985-605 “Software - Revenue Recognition”, utilizing the percentage of completion-like method described in FASB ASC 605-35. These agreements include software right-to-use licenses ("RTU's") and related customization and implementation services. Due to the long-term nature of software implementation and the extensive software customization based on normal customer specific requirements, both the RTU’s and implementation services are treated as a single element for revenue recognition purposes.

In addition to the professional services related to the customization and implementation of software, the Company also provides post-contract support ("PCS") services, including technical support and maintenance services. For those contracts that include PCS service arrangements which are not essential to the functionality of the software solution, the Company separates the FASB ASC 605-35 software services and PCS services utilizing the multiple-element arrangement model prescribed by FASB ASC 605-25, "Revenue Recognition - Multiple-Element Arrangements". FASB ASC 605-25 addresses the accounting treatment for an arrangement to provide the delivery or performance of multiple products and/or services where the delivery of a product or system or performance of services may occur at different points in time or over different periods of time. The Company utilizes FASB ASC 605-25 to separate the PCS service elements and allocate total contract consideration to the contract elements based on the relative fair value of those elements utilizing PCS renewal terms as evidence of fair value. Revenues from PCS services are recognized ratably on a straight-line basis over the term of the support and maintenance agreement.

Fair Value Measurement - For cash and cash equivalents, current trade receivables and current trade payables, the carrying amounts approximate fair value because of the short maturity of these items.

The Company utilizes the methods of fair value measurement as described in FASB ASC 820, “Fair Value Measurements” to value its financial assets and liabilities. As defined in FASB ASC 820, fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, FASB ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

6

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to level 3 inputs. 

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

Managed Services Implementation Revenues and Costs - For long-term managed service agreements, implementation efforts are often necessary to develop the software utilized to deliver the managed service. Costs of such implementation efforts may include internal and external costs for coding or customizing systems and costs for conversion of client data. We may invoice our clients for implementation fees at the go-live date of the underlying software. Lump sum implementation fees received from our clients are initially deferred and recognized on a pro-rata basis as services are provided. Specific, incremental and direct costs of implementation incurred prior to the services going live are deferred pursuant to FASB ASC 605-35-25 and amortized over the period that the related ongoing services revenue is recognized to the extent that the Company believes that the recoverability of the costs from the contract is probable. If a client terminates a managed services arrangement prior to the end of the contract, a loss on the contract may be recorded, if applicable, and any remaining deferred implementation revenues and costs would then be recognized into earnings generally over the remaining service period through the termination date. During the thirty-nine weeks ended September 28, 2013, implementation costs of $270,000 related to managed services contracts were deferred. No implementation costs related to managed services contracts were deferred during the thirteen or thirty-nine weeks ended September 29, 2012.

Research and Development and Software Development Costs - During the thirteen and thirty-nine weeks ended September 28, 2013, software development costs of $179,000 and $493,000, respectively, were expensed as incurred. During the thirteen and thirty-nine weeks ended September 29, 2012, software development costs of $80,000 and $420,000, respectively, were expensed as incurred. No software development costs were capitalized during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012.

Foreign Currency Transactions and Translation - Cartesian Ltd. and the international operations of Cambridge Strategic Management Group, Inc. conduct business primarily denominated in their respective local currency, which is their functional currency. Assets and liabilities have been translated to U.S. dollars at the period-end exchange rates. Revenues and expenses have been translated at exchange rates which approximate the average of the rates prevailing during each period. Translation adjustments are reported as a separate component of other comprehensive income (loss) in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Accumulated other comprehensive loss resulting from foreign currency translation adjustments totaled $4.0 million as of September 28, 2013 and December 29, 2012, and is included in Total Stockholders’ Equity in the Condensed Consolidated Balance Sheets. Assets and liabilities denominated in other than the functional currency of a subsidiary are re-measured at rates of exchange on the balance sheet date. Resulting gains and losses on foreign currency transactions are included in the Company’s results of operations. Realized and unrealized exchange gains and losses included in the results of operations were not significant during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012.

Earnings (Loss) Per Share - The Company calculates and presents earnings (loss) per share using a dual presentation of basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The weighted average number of common shares outstanding excludes treasury shares held by the Company. Diluted earnings (loss) per share is computed in the same manner except that the weighted average number of shares is increased for dilutive securities.

In accordance with the provisions of FASB ASC 260, "Earnings per Share," the Company uses the treasury stock method for calculating the dilutive effect of employee stock options and non-vested shares. The employee stock options and non-vested shares will have a dilutive effect under the treasury stock method only when average market value of the underlying Company common stock during the respective period exceeds the assumed proceeds. For share-based payment awards with a performance condition, the Company must first use the guidance on contingently issuable shares in FASB ASC 260-10 to determine whether the awards should be included in the computation of diluted earnings per share for the reporting period. For all non-vested performance-based awards, the Company determines the number of shares, if any, that would be issuable at the end of the reporting period if the end of the reporting period were the end of the contingency period. In applying the treasury stock method, assumed proceeds include the amount, if any, the employee must pay upon exercise, the amount of compensation cost for future services that the Company has not yet recognized, and the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the options and the vesting of non-vested shares. The Company has excluded the effect of 402,593 and 497,888 stock options in the calculation of diluted income per share for the thirteen weeks ended September 28, 2013 and September 29, 2012, respectively, as the effect would have been anti-dilutive. For the thirty-nine weeks ended September 28, 2013 and September 29, 2012, the Company has not included the effect of stock options and non-vested shares in the calculation of diluted loss per share as it reported a net loss for these periods and the effect would have been anti-dilutive.

Recent Accounting Pronouncements - In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“FASB ASU 2013-02”). The amendment in this update requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles to be reclassified in its entirety to net income. The provisions of FASB ASU 2013-02 are effective for annual and interim periods beginning after December 15, 2012. The adoption of the provisions of FASB ASU 2013-02 did not have a material impact on the Company's consolidated financial statements.

In July 2013, the FASB issued Accounting Standards Update No. 2013-11,Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“FASB ASU 2013-11”). The update requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The provisions of FASB ASU 2013-11 are effective for annual and interim periods beginning after December 15, 2013. The Company does not anticipate that the adoption of the provisions of FASB ASU 2013-11 will have a material impact on the Company's consolidated financial statements.

7

 

2. Goodwill and Long-Lived Assets

The changes in the carrying amount of goodwill for the thirty-nine weeks ended September 28, 2013 are as follows (in thousands):

	North
	America		EMEA		Total
Balance as of December 29, 2012	$	3,947	$	4,213	$	8,160
Changes in foreign currency exchange rates		-		(27)		(27)
Balance as of September 28, 2013	$	3,947	$	4,186	$	8,133

The Company evaluates goodwill for impairment on an annual basis on the last day of the first fiscal month of the fourth quarter and whenever events or circumstances indicate that these assets may be impaired. The Company performs its impairment testing for goodwill in accordance with FASB ASC 350, “Intangibles-Goodwill and Other.” Management determined that there were no events or changes in circumstances during the thirteen or thirty-nine weeks ended September 28, 2013 which indicated that goodwill needed to be tested for impairment during the period.

The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable in accordance with the provisions of FASB ASC 360, “Property, Plant and Equipment.” Management determined that there were no events or changes in circumstances during the thirteen or thirty-nine weeks ended September 28, 2013 which indicated that long-lived assets needed to be reviewed for impairment during the period.

3. Share-Based Compensation

The Company issues stock option awards and non-vested share awards under its share-based compensation plans. The key provisions of the Company's share-based compensation plans are described in Note 3 to the Company's consolidated financial statements included in the 2012 Form 10-K.

The Company recognized no income tax benefits related to share-based compensation arrangements during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012.

1998 Equity Incentive Plan

Stock Options

A summary of the option activity under the Company's Amended and Restated 1998 Equity Incentive Plan (“1998 Plan”), as of September 28, 2013 and changes during the thirty-nine weeks then ended is presented below:

			Weighted
			Average
			Exercise
	Shares		Price
Outstanding at December 29, 2012		347,293	$	10.60
Forfeited/cancelled		(18,800)	$	9.31
Outstanding at September 28, 2013		328,493	$	10.67
Options vested and exercisable at September 28, 2013		328,493	$	10.67

There were no options granted during the thirty-nine weeks ended September 28, 2013.

Non-vested Shares

Service-Based Non-vested Share Awards - As of September 28, 2013 and December 29, 2012, the Company has 110,000 shares of non-vested stock outstanding that vest solely based on employee service. These shares have a weighted average grant date fair value of $2.26 and cliff vest after a one-year service period beginning on December 17, 2012.

The service-based non-vested share award for the 110,000 shares was valued at the date of grant, based on the closing market price of the Company’s common stock, and is being expensed using the straight-line method over the requisite service period (which is the vesting period of the award). During the thirteen and thirty-nine weeks ended September 28, 2013, the Company recorded $61,000 and $183,000, respectively, of stock-based compensation expense in connection with the service-based non-vested share awards granted in December 2012. As of September 28, 2013, there is an estimated $54,000 of unrecognized stock-based compensation expense, net of estimated forfeitures, related to the service-based non-vested share awards. The unrecognized compensation cost at September 28, 2013 is expected to be recognized over a period of 2.5 months.

8

Performance-Based Non-vested Share Awards - On April 8, 2013, the Company’s Board of Directors approved an equity incentive program under the 1998 Plan pursuant to which the Board of Directors granted performance-based non-vested share awards for a total of 800,000 shares of Common Stock to various executive officers and employees of the Company. All 800,000 non-vested shares have a grant date fair value of $3.14. The first potential vesting date is the Company's earnings release date for its 2014 first fiscal quarter and each subsequent potential vesting date is each of the Company's quarterly earnings release dates thereafter through the release date for the first quarter of 2017. Shares not vested as of the release date for the first quarter of 2017 are forfeited. Except for termination of employment in certain circumstances following a change of control, the unvested portion of an award is forfeited upon any termination of employment. Under the terms of the awards, vesting is partially accelerated and each award is converted to a time-vested award upon a change of control of the Company. The holders of shares of non-vested share awards have all of the rights of stockholders of the Company, including the right to receive dividends and to vote the shares, until the shares are forfeited to the Company.

Stock-based compensation cost for performance-based non-vested share awards is measured at the grant date based on the fair value of shares expected to be earned at the end of the performance period, based on the closing market price of the Company’s common stock on the date of grant, and is recognized as expense using the straight-line method over the performance period based upon the probable number of shares expected to vest. The Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures. During the thirteen and thirty-nine weeks ended September 28, 2013, the Company recorded $170,000 and $340,000, respectively, of stock-based compensation expense in connection with the performance-based non-vested share awards granted in April 2013. As of September 28, 2013, there is an estimated $2.1 million of unrecognized stock-based compensation expense, net of estimated forfeitures, related to the performance-based non-vested share awards. The unrecognized compensation cost at September 28, 2013 is expected to be recognized over a period of 36 months. 

2000 Supplemental Stock Plan

A summary of the option activity under the Company's 2000 Supplemental Stock Plan (the "Supplemental Stock Plan") as of September 28, 2013 and changes during the thirty-nine weeks then ended is presented below:

			Weighted
			Average
			Exercise
	Shares		Price
Outstanding at December 29, 2012		102,000	$	11.44
Forfeited/cancelled		(19,400)	$	11.88
Outstanding at September 28, 2013		82,600	$	11.33
Options vested and exercisable at September 28, 2013		82,600	$	11.33

The Supplemental Stock Plan expired on May 23, 2010. No new awards will be issued pursuant to the plan. The outstanding awards issued pursuant to the Supplemental Stock Plan remain subject to the terms of the Supplemental Stock Plan following expiration of the plan. 

4. Business Segments and Major Customers

The Company identifies its segments based on the way management organizes the Company to assess performance and make operating decisions regarding the allocation of resources. In accordance with the criteria in FASB ASC 280 "Segment Reporting," the Company has concluded it has two reportable segments: the North America segment and the EMEA segment. The North America segment is comprised of three operating segments (North America Cable and Broadband, North America Telecom and Strategy), which are aggregated into one reportable segment based on the similarity of their economic characteristics. The EMEA segment is a single reportable, operating segment that encompasses the Company’s operational, technology and software consulting services outside of North America. Both reportable segments offer management consulting, custom developed software, and technical services.

Management evaluates segment performance based upon income (loss) from operations, excluding share-based compensation (benefits), depreciation and intangibles amortization. There were no inter-segment revenues during the thirteen and thirty-nine weeks ended September 28, 2013 or September 29, 2012. In addition, in its administrative division, entitled “Not Allocated to Segments,” the Company accounts for non-operating activity and the costs of providing corporate and other administrative services to all the segments. Summarized financial information concerning the Company’s reportable segments is shown in the following table (amounts in thousands):

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					Not
	North				Allocated to
	America		EMEA		Segments		Total
As of and for the thirty-nine weeks ended September 28, 2013:
Revenues	$	26,553	$	14,887			$	41,440
Income (loss) from operations		6,332		3,487	$	(10,342)		(523)
Total assets	$	6,026	$	6,241	$	22,854	$	35,121
For the thirteen weeks ended September 28, 2013:
Revenues	$	8,400	$	4,993			$	13,393
Income (loss) from operations		2,076		1,184	$	(3,211)		49
As of the fiscal year ended December 29, 2012
Total assets	$	7,519	$	5,243	$	22,554	$	35,316
As of and for the thirty-nine weeks ended September 29, 2012:
Revenues	$	29,806	$	10,271			$	40,077
Income (loss) from operations		8,233		1,563	$	(11,166)		(1,370)
Total assets	$	8,750	$	3,912	$	21,058	$	33,720
For the thirteen weeks ended September 29, 2012:
Revenues	$	9,219	$	3,514			$	12,733
Income (loss) from operations		2,616		608	$	(3,053)		171

Segment assets, regularly reviewed by management as part of its overall assessment of the segments’ performance, include both billed and unbilled trade accounts receivable, net of allowances, and certain other assets, if applicable. Assets not assigned to segments include cash and cash equivalents, current and non-current investments, property and equipment, goodwill and intangible assets and deferred tax assets, excluding deferred tax assets recognized on accounts receivable reserves, which are assigned to their segments.

In accordance with the provisions of FASB ASC 280-10, revenues earned in the United States and internationally based on the location where the services are performed are shown in the following table (amounts in thousands):

	For the Thirteen Weeks				For the Thirty-nine Weeks
	Ended				Ended
	September 28,		September 29,		September 28,		September 29,
	2013		2012		2013		2012
United States	$	7,818	$	8,647	$	25,338	$	28,335
International:
United Kingdom		5,246		3,225		14,609		9,553
Other		329		861		1,493		2,189
Total	$	13,393	$	12,733	$	41,440	$	40,077

Major customers in terms of significance to TMNG’s revenues (i.e. in excess of 10% of revenues) and accounts receivable were as follows (amounts in thousands).

	Revenues
	For the thirty-nine weeks				For the thirty-nine weeks
	ended September 28, 2013				ended September 29, 2012
	North				North
	America		EMEA		America		EMEA
Customer A	$	9,405			$	11,312
Customer B	$	4,980			$	4,499
Customer C	$	552	$	6,360	$	24	$	2,637
Customer D	$	3,948			$	4,850

	Revenues
	For the thirteen weeks				For the thirteen weeks
	ended September 28, 2013				ended September 29, 2012
	North				North
	America		EMEA		America		EMEA
Customer A	$	2,850			$	3,331
Customer B	$	1,302			$	1,442
Customer C	$	318	$	2,631	$	15	$	833
Customer D	$	1,260			$	1,526

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	Accounts Receivable
	As of		As of
	September 28,		September 29,
	2013		2012
Customer A	$	1,903	$	2,837
Customer B	$	1,163	$	1,861
Customer C	$	3,659	$	1,018
Customer D	$	598	$	887

Revenues from the Company’s ten most significant customers accounted for 82.8% and 83.5% of revenues during the thirteen and thirty-nine weeks ended September 28, 2013, respectively. Revenues from the Company’s ten most significant customers accounted for approximately 82.4% and 81.7% of revenues during the thirteen and thirty-nine weeks ended September 29, 2012, respectively.

5. Income Taxes

During the thirteen weeks ended September 28, 2013 and September 29, 2012, the Company recorded income tax provisions of $20,000 and $30,000, respectively. During the thirty-nine weeks ended September 28, 2013 and September 29, 2012, the Company recorded income tax provisions of $59,000 and $90,000, respectively. The tax provisions for all periods presented are due to deferred taxes recognized on intangible assets amortized for income tax purposes but not for financial reporting purposes. The Company has reserved all of its domestic and international net deferred tax assets with a valuation allowance as of September 28, 2013 and December 29, 2012 in accordance with the provisions of FASB ASC 740, “Income Taxes," which requires an estimation of the recoverability of the recorded income tax asset balances. As of September 28, 2013, the Company has recorded $31.7 million of valuation allowances attributable to its net deferred tax assets.

The Company analyzes its uncertain tax positions pursuant to the provisions of FASB ASC 740 “Income Taxes.” There was no material activity related to the liability for uncertain tax positions during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012, and the Company has determined it does not have any material uncertain tax positions requiring reserves at September 28, 2013.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2000. As of September 28, 2013, the Company has no income tax examinations in process.

6. Commitments and Contingencies

On January 10, 2012, Richard P. Nespola, the Company’s former chief executive officer, former chairman of the board and a former member of the Company’s Board of Directors, filed an action, Richard P. Nespola v. The Management Network Group, Inc., against the Company with the American Arbitration Association. In the action, Mr. Nespola claimed that the Company breached his employment agreement and an implied covenant of good faith and fair dealing by: (i) improperly deciding not to renew his employment agreement, and (ii) subsequently deciding to terminate his employment for cause. Mr. Nespola also claimed that the Company defamed him but subsequently withdrew that claim. An arbitration hearing on the action occurred in late October 2013. Mr. Nespola seeks in excess of $1.6 million in damages plus attorneys’ fees and costs. The Company has denied Mr. Nespola’s allegations, does not believe the action has any merit, and has defended against it vigorously. The Company is unable to reasonably estimate any possible loss or range of possible loss given the current status of the arbitration and given the inherent uncertainty in predicting an arbitration decision. A decision in this action is expected prior to January 31, 2014.

In addition, the Company may become involved in various legal and administrative actions arising in the normal course of business. These could include actions brought by taxing authorities challenging the employment status of consultants utilized by the Company. In addition, future customer bankruptcies could result in additional claims on collected balances for professional services near the bankruptcy filing date. The resolution of any of such actions, claims, or the matters described above may have an impact on the financial results for the period in which they occur.

During fiscal year 2012, the Company renewed a purchase agreement, committing to purchase a minimum of $285,000 in computer software over a three year period ending in the first quarter of fiscal year 2015. As of September 28, 2013, the Company has an obligation of $143,000 remaining under this commitment.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statement Regarding Forward-Looking Statements. In addition to historical information, this quarterly report contains forward-looking statements. Forward-looking statements include, but are not limited to, statements of plans and objectives, statements of future economic performance or financial projections, statements of assumptions underlying such statements, and statements of the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future. Forward-looking statements can often be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "should," "could," "intends," "plans," "estimates" or "anticipates," variations thereof or similar expressions. Certain risks and uncertainties could cause actual results to differ materially from those reflected in such forward-looking statements. Factors that might cause a difference include, but are not limited to, conditions in the industry sectors that we serve, including the slowing of client decisions on proposals and project opportunities along with scope reduction of existing projects, overall economic and business conditions, including the current economic slowdown, our ability to retain the limited number of large clients that constitute a major portion of our revenues, technological advances and competitive factors in the markets in which we compete, and the factors discussed in the sections entitled "Cautionary Statement Regarding Forward-Looking Information" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended December 29, 2012 (“2012 Form 10-K”). Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this report. We undertake no obligation to revise, or publicly release the results of any revision to, these forward-looking statements. Readers should carefully review the cautionary statements contained in our 2012 Form 10-K and in other documents that we file from time to time with the Securities and Exchange Commission.

The following should be read in connection with Management's Discussion and Analysis of Financial Condition and Results of Operations as presented in our 2012 Form 10-K.

OVERVIEW

TMNG is among the leading providers of professional services and technical solutions to the global leaders in the communications, digital media, and technology industries. We offer a fully integrated suite of consulting offerings including strategy, organizational development, knowledge management, marketing, operational, and technology consulting services. We have consulting experience with almost all major aspects of managing a global communications company. Our portfolio of solutions includes proprietary methodologies and toolsets, deep industry experience, and hands-on operational expertise and licensed software. These solutions assist clients in tackling complex business problems.

Our global investments in targeting the cable industry have re-positioned our business to better serve consolidating telecommunications carriers and the converging global media and entertainment companies. The convergence of communications with media and entertainment, the pace of technological change in the sector, and the consolidation of large telecommunications carriers have required us to focus our strategy on serving our clients in both North America and European markets, continuing to expand our offerings with software products and strengthening our position within the large carriers and media and entertainment companies. Subject to the effects of cyclical economic conditions, our efforts are helping us build what we believe is a more sustainable revenue model over the long-term, which will enable us to expand our global presence. We continue to focus our efforts on identifying, adapting to and capitalizing on the changing dynamics prevalent in the converging communications, media and entertainment industries, as well as providing our wireless and IP services within the communications sector.

Our financial results are affected by macroeconomic conditions, credit market conditions, and the overall level of business confidence. Economic volatility has continued to impact our customer base and has resulted in continued higher levels of unemployment, and significant employee layoffs and reductions in capital and operating expenditures for some of our significant clients in the communications, media and entertainment sectors. We are also experiencing greater pricing pressure and an increased need for enhanced return on investment for projects or added sharing of risk and reward.

Revenues are driven by the ability of our team to secure new project contracts and deliver those projects in a way that adds value to our clients in terms of return on investment or assisting clients to address a need or implement change. For the thirteen weeks ended September 28, 2013, revenues increased by approximately 5.2% from the prior year quarter to $13.4 million. For the thirty-nine weeks ended September 28, 2013, revenues increased 3.4% to $41.4 million from $40.1 million for the thirty-nine weeks ended September 29, 2012. For both the thirteen and thirty-nine week periods, the increase was driven primarily by improvements within the EMEA segment. Our international revenues were approximately 38.9% of total revenues for the thirty-nine weeks ended September 28, 2013 as compared to 29.3% for the thirty-nine weeks ended September 29, 2012. Our revenues are denominated in multiple currencies and may be impacted by currency rate fluctuations.

Generally our client relationships begin with a short-term engagement. Our sales strategy focuses on building long-term relationships with both new and existing clients to gain additional engagements within existing accounts and referrals for new clients. Strategic alliances with other companies are also used to sell services. We anticipate that we will continue to pursue these marketing strategies in the future. The volume of work performed for specific clients may vary from period to period and a major client from one period may not use our services or the same volume of services in another period. In addition, clients generally may end their engagements with little or no penalty or notice. If a client consulting engagement ends earlier than expected, we must re-deploy professional service personnel as any resulting non-billable time could harm margins.

Cost of services consists primarily of compensation for consultants who are employees as well as fees paid to independent contractor organizations and related expense reimbursements. Employee compensation includes certain non-billable time, training, vacation time, benefits and payroll taxes. Gross margins are primarily impacted by the type of consulting services provided; the size of service contracts and negotiated discounts; changes in our pricing policies and those of competitors; utilization rates of consultants and independent subject matter experts; and employee and independent contractor costs, which tend to be higher in a competitive labor market.

Gross margins were 37.4% in the thirty-nine weeks ended September 28, 2013 compared to 37.6% in the thirty-nine weeks ended September 29, 2012. In general, the most significant items that impact our margins include the mix of project types, utilization of personnel and competitive pricing decisions, including volume discounts.

Sales and marketing expenses consist primarily of personnel salaries, bonuses, and related costs for direct client sales efforts and marketing staff. We primarily use a relationship sales model in which partners, principals and senior consultants generate revenues. In addition, sales and marketing expenses include costs associated with marketing collateral, product development, trade shows and advertising. General and administrative expenses consist mainly of costs for accounting, recruiting and staffing, information technology, personnel, insurance, rent and outside professional services incurred in the normal course of business.

Selling, general and administrative expenses were $5.0 million for the thirteen weeks ended September 28, 2013 compared to $4.7 million for the thirteen weeks ended September 29, 2012. Selling, general and administrative expenses during the thirteen weeks ended September 28, 2013 increased from the comparable 2012 period primarily due to additional non-cash compensation expense of $231,000 in connection with the performance-based non-vested shares granted in April 2013 as discussed in Note 3 to our unaudited consolidated financial statements. Selling, general and administrative expenses were $16.0 million for the thirty-nine weeks ended September 28, 2013 compared to $16.4 million for the thirty-nine weeks ended September 29, 2012. Selling, general and administrative expenses during the thirty-nine weeks ended September 28, 2013 decreased from the comparable 2012 period primarily due to proactive measures to lower salary and other personnel related costs and a reduction in travel and entertainment expenditures during the periods to better align the cost structure with our customer base and core revenue generating activities, partially offset by increased non-cash compensation expense of $522,000 related to the performance-based non-vested shares described above. We continue to evaluate selling, general and administrative expenses in an effort to maintain an appropriate cost structure relative to revenue levels.

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We recorded net income of $30,000 and a net loss of $0.6 million for the thirteen and thirty-nine weeks ended September 28, 2013, respectively, compared to net income of $0.1 million and a net loss of $1.5 million for the thirteen and thirty-nine weeks ended September 29, 2012, respectively. The decrease in net income for the comparable thirteen week period and the reduction in net loss for the comparable thirty-nine week period are due to the factors described above. The rate of change in the communications industry, driving convergence of media and telecommunications, consolidation of providers and expanded deployment of wireless capabilities have added both opportunity and uncertainty for our clients. Consolidation within the sector tends to result in increased consolidation of competitors. The supply chain divisions within larger clients, given sector consolidation, also tend to reduce the number of vendors utilized and to negotiate volume programs with select preferred vendors. This activity could result in further price reductions, fewer client projects, under-utilization of consultants, reduced operating margins and loss of market share. Declines in our revenues can have a significant impact on our financial results. Although we have a flexible cost base comprised primarily of employee and related costs, there is a lag in time required to scale the business appropriately if revenues are reduced. In addition, our future revenues and operating results may fluctuate from quarter to quarter based on the number, size and scope of projects in which we are engaged, the contractual terms and degree of completion of such projects, any delays incurred in connection with a project, consultant utilization rates, general economic conditions and other factors.

Cash and cash equivalents increased by $0.1 million during the thirty-nine weeks ended September 28, 2013 due primarily to net cash provided by operating activities of $0.5 million offset by acquisitions of property and equipment of $0.4 million. At September 28, 2013, we had working capital of approximately $18.2 million, which is unchanged from December 29, 2012.

CRITICAL ACCOUNTING POLICIES

While the selection and application of any accounting policy may involve some level of subjective judgments and estimates, we believe the following accounting policies are the most critical to our condensed consolidated financial statements, potentially involve the most subjective judgments in their selection and application, and are the most susceptible to uncertainties and changing conditions:

• Impairment of Goodwill and Long-lived Assets;

• Revenue Recognition;

• Accounting for Income Taxes;

• Research and Development and Software Development Costs; and

• Share-based Compensation Expense.

Impairment of Goodwill and Long-lived Assets - As of September 28, 2013, we had $8.1 million in goodwill, which is subject to periodic review for impairment. FASB ASC 350 "Intangibles-Goodwill and Other" requires an evaluation of indefinite-lived intangible assets and goodwill annually and whenever events or circumstances indicate that such assets may be impaired. The evaluation is conducted at the reporting unit level and compares the calculated fair value of the reporting unit to its book value to determine whether impairment has been deemed to occur. As of September 28, 2013, we have approximately $3.9 million and $4.2 million in goodwill allocated to the North America Telecom and EMEA reporting units, respectively. Any impairment charge would be based on the most recent estimates of the recoverability of the recorded goodwill. If the remaining book value assigned to goodwill in an acquisition is higher than the estimated fair value of the reporting unit, there is a requirement to write down these assets.

Fair value of our reporting units is determined using a combination of the income approach and the market approach. The income approach uses a reporting unit's projection of estimated cash flows discounted using a weighted-average cost of capital analysis that reflects current market conditions. We also consider the market approach to valuing our reporting units utilizing revenue and EBITDA multiples. We compare the results of our overall enterprise valuation as determined by the combination of the two approaches to our market capitalization. Significant management judgments related to these approaches include:

• Anticipated future cash flows and terminal value for each reporting unit - The income approach to determining fair value relies on the timing and estimates of future cash flows, including an estimate of terminal value. The projections use management's estimates of economic and market conditions over the projected period including growth rates in revenues and estimates of expected changes in operating margins. Our projections of future cash flows are subject to change as actual results are achieved that differ from those anticipated. Because management frequently updates its projections, we would expect to identify on a timely basis any significant differences between actual results and recent estimates.

• Selection of an appropriate discount rate - The income approach requires the selection of an appropriate discount rate, which is based on a weighted average cost of capital analysis. The discount rate is affected by changes in short-term interest rates and long-term yields as well as variances in the typical capital structure of marketplace participants. The discount rate is determined based on assumptions that would be used by marketplace participants, and for that reason, the capital structure of selected marketplace participants was used in the weighted average cost of capital analysis. Given the current volatile economic conditions, it is possible that the discount rate will fluctuate in the near term.

• Selection of an appropriate multiple - The market approach requires the selection of an appropriate multiple to apply to revenues or EBITDA based on comparable guideline company or transaction multiples. It is often difficult to identify companies or transactions with a similar profile in regards to revenue, geographic operations, risk profile and other factors. Given the current volatile economic conditions, it is possible that multiples of guideline companies will fluctuate in the near term.

In accordance with FASB ASC 360, "Property, Plant and Equipment," we use our best estimates based upon reasonable and supportable assumptions and projections to review for impairment of long-lived assets to be held and used whenever events or changes in circumstances indicate that the carrying amount of our assets might not be recoverable.

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Revenue Recognition - We recognize revenues from time and materials consulting contracts in the period in which our services are performed. We recognized $4.1 million and $4.4 million in revenues from time and materials contracts during the thirteen weeks ended September 28, 2013 and September 29, 2012, respectively. We recognized $13.8 million and $14.8 million in revenues from time and materials contracts during the thirty-nine weeks ended September 28, 2013 and September 29, 2012, respectively. In addition to time and materials contracts, our other types of contracts include fixed fee contracts. We recognize revenues on milestone or deliverables-based fixed fee contracts and time and materials contracts not to exceed contract price using the percentage of completion-like method described by FASB ASC 605-35, "Revenue Recognition - Construction-Type and Production-Type Contracts." For fixed fee contracts where services are not based on providing deliverables or achieving milestones, we recognize revenues on a straight-line basis over the period during which such services are expected to be performed. During the thirteen weeks ended September 28, 2013 and September 29, 2012, we recognized $9.3 million and $8.3 million in revenues on fixed fee contracts, respectively. During the thirty-nine weeks ended September 28, 2013 and September 29, 2012, we recognized $27.6 million and $25.3 million in revenues on fixed fee contracts, respectively. In connection with some fixed fee contracts, we receive payments from customers that exceed recognized revenues. We record the excess of receipts from customers over recognized revenue as deferred revenue. Deferred revenue is classified as a current liability to the extent it is expected to be earned within twelve months from the date of the balance sheet.

The FASB ASC 605-35 percentage-of-completion-like methodology involves recognizing revenue using the percentage of services completed, on a current cumulative cost to total cost basis, using a reasonably consistent profit margin over the period. Due to the longer term nature of these projects, developing the estimates of costs often requires significant judgment. Factors that must be considered in estimating the progress of work completed and ultimate cost of the projects include, but are not limited to, the availability of labor and labor productivity, the nature and complexity of the work to be performed, and the impact of delayed performance. If changes occur in delivery, productivity or other factors used in developing the estimates of costs or revenues, we revise our cost and revenue estimates, which may result in increases or decreases in revenues and costs, and such revisions are reflected in income in the period in which the facts that give rise to that revision become known.

We also develop, install and support customer software in addition to our traditional consulting services. We recognize revenues in connection with our software sales agreements under FASB ASC 985-605 “Software - Revenue Recognition”, utilizing the percentage of completion-like method described in FASB ASC 605-35. These agreements include software right-to-use licenses ("RTU's") and related customization and implementation services. Due to the long-term nature of software implementation and the extensive software customization based on normal customer specific requirements, both the RTU’s and implementation services are treated as a single element for revenue recognition purposes.

In addition to the professional services related to the customization and implementation of software, we also provide post-contract support ("PCS") services, including technical support and maintenance services. For those contracts that include PCS service arrangements which are not essential to the functionality of the software solution, we separate the FASB ASC 605-35 software services and PCS services utilizing the multiple-element arrangement model prescribed by FASB ASC 605-25, "Revenue Recognition - Multiple-Element Arrangements." FASB ASC 605-25 addresses the accounting treatment for an arrangement to provide the delivery or performance of multiple products and/or services where the delivery of a product or system or performance of services may occur at different points in time or over different periods of time. We utilize FASB ASC 605-25 to separate the PCS service elements and allocate total contract consideration to the contract elements based on the relative fair value of those elements utilizing PCS renewal terms as evidence of fair value. Revenues from PCS services are recognized ratably on a straight-line basis over the term of the support and maintenance agreement.

Accounting for Income Taxes - Accounting for income taxes requires significant estimates and judgments on the part of management. Such estimates and judgments include, but are not limited to, the effective tax rate anticipated to apply to tax differences that are expected to reverse in the future, the sufficiency of taxable income in future periods to realize the benefits of net deferred tax assets and net operating losses currently recorded and the likelihood that tax positions taken in tax returns will be sustained on audit. We account for income taxes in accordance with FASB ASC 740 "Income Taxes." As required by FASB ASC 740, we record deferred tax assets or liabilities based on differences between financial reporting and tax basis of assets and liabilities using currently enacted rates that will be in effect when the differences are expected to reverse. FASB ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. As of September 28, 2013, cumulative valuation allowances in the amount of $31.7 million were recorded in connection with the net deferred income tax assets. As required by FASB ASC 740, we have performed a comprehensive review of our portfolio of uncertain tax positions in accordance with recognition standards established by the guidance. Pursuant to FASB ASC 740, an uncertain tax position represents our expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. As of September 28, 2013, we have no recorded liability for unrecognized tax benefits.

We have generated substantial deferred income tax assets related to our domestic operations, and to a lesser extent our international operations, primarily from the accelerated financial statement write-off of goodwill, the charge to compensation expense taken for stock options and net operating losses. Within our foreign operations, mostly domiciled within the United Kingdom, we have generated deferred tax assets primarily from the charge to compensation expense for stock options and operating losses. For us to realize the income tax benefit of these assets in the applicable jurisdiction, we must generate sufficient taxable income in future periods when such deductions are allowed for income tax purposes. In some cases where deferred taxes were the result of compensation expense recognized on stock options, our ability to realize the income tax benefit of these assets is also dependent on our share price increasing to a point where these options have intrinsic value at least equal to the grant date fair value and are exercised. In assessing whether a valuation allowance is needed in connection with our deferred income tax assets, we have evaluated our ability to generate sufficient taxable income in future periods to utilize the benefit of the deferred income tax assets. We continue to evaluate our ability to use recorded deferred income tax asset balances. If we continue to report domestic or international operating losses for financial reporting in future years in either our domestic or international operations, no additional tax benefit would be recognized for those losses, since we will not have accumulated enough positive evidence to support our ability to utilize net operating loss carry-forwards in the future.

International operations have become a significant part of our business. As part of the process of preparing our financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. We utilize a "cost plus fixed margin" transfer pricing methodology as it relates to inter-company charges for headquarters support services performed by our domestic entities on behalf of various foreign affiliates. The judgments and estimates used are subject to challenge by domestic and foreign taxing authorities. It is possible that such authorities could challenge those judgments and estimates and draw conclusions that would cause us to incur liabilities in excess of those currently recorded. We use an estimate of our annual effective tax rate at each interim period based upon the facts and circumstances available at that time, while the actual annual effective tax rate is calculated at year-end. Changes in the geographical mix or estimated amount of annual pre-tax income could impact our overall effective tax rate.

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Research and Development and Software Development Costs - Software development costs are accounted for in accordance with FASB ASC 985-20, "Software - Costs of Software to Be Sold, Leased, or Marketed." Capitalization of software development costs for products to be sold to third parties begins upon the establishment of technological feasibility and ceases when the product is available for general release. The establishment of technological feasibility and the ongoing assessment of recoverability of capitalized software development costs require considerable judgment by management concerning certain external factors including, but not limited to, the date technological feasibility is reached, anticipated future gross revenue, estimated economic life and changes in software and hardware technologies. We capitalize development costs incurred during the period between the establishment of technological feasibility and the release of the final product to customers if such costs are material. During the thirteen weeks ended September 28, 2013 and September 29, 2012, software development costs of $179,000 and $80,000, respectively, were expensed as incurred. During the thirty-nine weeks ended September 28, 2013 and September 29, 2012, software development costs of $493,000 and $420,000, respectively, were expensed as incurred. No software development costs were capitalized during the thirteen or thirty-nine weeks ended September 28, 2013 or September 29, 2012.

Share-based Compensation Expense - We grant stock options and non-vested stock to our employees under stock incentive plans and also provide employees the right to purchase our stock at a discount pursuant to an employee stock purchase plan. The benefits provided under these plans are share-based payment awards subject to the provisions of FASB ASC 718, “Compensation-Stock Compensation.” Under FASB ASC 718, we are required to make significant estimates related to determining the value of our share-based compensation. If factors change and we develop different assumptions in the application of FASB ASC 718 in future periods, the compensation expense that we record under FASB ASC 718 may differ significantly from what we have recorded in the current period. There is a high degree of subjectivity involved when using option pricing models to estimate share-based compensation under FASB ASC 718. Changes in the subjective input assumptions can materially affect our estimates of fair values of our share-based compensation. Certain share-based payment awards, such as employee stock options, may expire worthless or otherwise result in zero intrinsic value as compared to the fair values originally estimated on the grant date and reported in our financial statements. Alternatively, values may be realized from these instruments that are significantly in excess of the fair values originally estimated on the grant date and reported in our financial statements. Although the fair value of employee share-based awards is determined in accordance with FASB ASC 718 and SEC’s Staff Accounting Bulletin (“SAB”) SAB No. 110 using an option pricing model, such value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction.

For stock options, we calculate grant date fair value using the Black-Scholes valuation model. Our expected stock-price volatility assumption is based on historical volatilities of the underlying stock which are obtained from public data sources. The expected term of options granted is based on the simplified method in accordance with the SAB No. 110 as our historical share option exercise experience does not provide a reasonable basis for estimation. Expense for the awards ultimately expected to vest is recognized on a graded vesting schedule over the vesting period.

For non-vested, performance-based stock awards, compensation expense is recognized based on management’s expectations with regard to achievement of certain performance and service conditions. The fair value of the awards is determined based on the market value of the underlying stock at the grant date. Expense for the awards ultimately expected to vest is recognized on a straight-line basis over the implied service period of the award. There is a high degree of subjectivity involved when determining the number of awards which are expected to vest over the service period based on projections of the underlying performance measure. Changes in assumptions related to the achievement of the performance measure may materially affect the amount of expense recognized by the Company for performance-based non-vested stock.

For non-vested, service-based stock awards, compensation is recognized based on achievement of service conditions alone. The fair value of the awards is determined based on the market value of the underlying stock at the grant date. Expense for the awards ultimately expected to vest is recognized on a graded vesting schedule over the vesting period.

RESULTS OF OPERATIONS

THIRTEEN WEEKS ENDED SEPTEMBER 28, 2013 COMPARED TO THIRTEEN WEEKS ENDED SEPTEMBER 29, 2012

REVENUES

Revenues increased 5.2% to $13.4 million for the thirteen weeks ended September 28, 2013 from $12.7 million for the thirteen weeks ended September 29, 2012. The increase in revenues was primarily related to our EMEA segment which experienced an increase in project volumes.

North America Segment - North America segment revenues decreased 9.1% to $8.4 million for the thirteen weeks ended September 28, 2013 from $9.2 million for the thirteen weeks ended September 29, 2012. The reduction in revenues was primarily related to a reduction in demand for subject matter expert consultant placements. During the thirteen weeks ended September 28, 2013, the North America segment provided services on 76 customer projects, compared to 86 projects performed in the thirteen weeks ended September 29, 2012. Average revenue per project was $111,000 in the thirteen weeks ended September 28, 2013, compared to $107,000 in the thirteen weeks ended September 29, 2012. Revenues recognized in connection with fixed price engagements totaled $5.6 million and $5.9 million for the thirteen weeks ended September 28, 2013 and September 29, 2012, representing 67.0% and 64.3% of the total revenues of the segment, respectively. There were no revenues from software licensing during both thirteen week periods ended September 28, 2013 and September 29, 2012.

EMEA Segment- EMEA segment revenues increased 43.0% to $5.0 million for the thirteen weeks ended September 28, 2013 from $3.5 million for the thirteen weeks ended September 29, 2012. The increase in revenues was primarily related to an increase in demand for consulting services and technical solutions. During the thirteen weeks ended September 28, 2013 and September 29, 2012, this segment provided services on 89 and 67 customer projects, respectively. Average revenue per project was approximately $49,000 and $42,000, respectively, for the thirteen weeks ended September 28, 2013 and September 29, 2012. Revenues from post-contract software related support services were approximately $630,000 and $697,000 for the thirteen weeks ended September 28, 2013 and September 29, 2012, respectively. Revenues from software licensing during the thirteen weeks ended September 28, 2013 and September 29, 2012 were immaterial.

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For long-term managed service agreements, implementation efforts are often necessary to develop the software utilized to deliver the managed service. Such costs may include internal and external costs for coding or customizing systems and costs for conversion of client data. Specific, incremental and direct costs of implementation incurred prior to the services going live are deferred and amortized over the period that the related ongoing services revenue is recognized. During the thirteen weeks ended September 28, 2013, implementation costs of $270,000 and all associated revenues related to an EMEA segment managed services contract was deferred. No implementation costs related to managed services contracts were deferred during the thirteen weeks ended September 29, 2012.

COST OF SERVICES

Cost of services increased 6.9% to $8.4 million for the thirteen weeks ended September 28, 2013 from $7.8 million for the thirteen weeks ended September 29, 2012. Our gross margin was 37.7% for the thirteen weeks ended September 28, 2013 compared to 38.6% for the thirteen weeks ended September 29, 2012. Cost of services during the thirteen weeks ended September 28, 2013 was $5.2 million and $3.2 million in our North America and EMEA segments, respectively. Cost of services during the thirteen weeks ended September 29, 2012 was $5.6 million and $2.2 million in our North America and EMEA segments, respectively. Our North America segment gross margin was 38.8% for the thirteen weeks ended September 28, 2013 compared to 39.4% for the thirteen weeks ended September 29, 2012. The decrease in gross margin in the third quarter of 2013 as compared to the same period of 2012 in our North America segment is primarily due to pricing pressure by client supply chain groups for placement of subject matter experts. Our EMEA segment gross margin was 35.7% for the thirteen weeks ended September 28, 2013, compared to 36.6% for the thirteen weeks ended September 29, 2012. The decrease in gross margin in the EMEA segment is primarily related to the utilization of more independent consultants during the third quarter of 2013 as compared to the same period of 2012, which resulted in a more expensive mix of resources.

OPERATING EXPENSES

Selling, general and administrative expenses increased 5.2% to $5.0 million for the thirteen weeks ended September 28, 2013, from $4.7 million for the thirteen weeks ended September 29, 2012. This increase is primarily due to additional non-cash compensation expense of $231,000 in connection with the performance-based non-vested shares granted in April 2013 as discussed in Note 3 to our unaudited consolidated financial statements.

INCOME TAXES

During the thirteen weeks ended September 28, 2013 and September 29, 2012, the Company recorded income tax provisions of $20,000 and $30,000, respectively. The income tax provisions for both periods are related to deferred taxes recognized on goodwill amortized for income tax purposes but not for financial reporting purposes. For the thirteen weeks ended September 28, 2013 and September 29, 2012, we recorded no income tax benefit related to our domestic and international pre-tax losses in accordance with the provisions of FASB ASC 740, "Income Taxes", which requires an estimation of our ability to use recorded deferred income tax assets. We currently have recorded a valuation allowance against all domestic and international deferred income tax assets generated due to uncertainty about their ultimate realization as a result of our history of operating losses. If we continue to report net operating losses for financial reporting in either our domestic or international operations, no additional tax benefit would be recognized for those losses, since we will not have accumulated enough positive evidence to support our ability to utilize the net operating loss carry-forwards in the future.

NET INCOME

We recorded net income of $30,000 and $0.1 million for the thirteen weeks ended September 28, 2013 and September 29, 2012, respectively.

THIRTY-NINE WEEKS ENDED SEPTEMBER 28, 2013 COMPARED TO THIRTY-NINE WEEKS ENDED SEPTEMBER 29, 2012

REVENUES

Revenues increased 3.4% to $41.4 million for the thirty-nine weeks ended September 28, 2013 from $40.1 million for the thirty-nine weeks ended September 29, 2012. The increase in revenues was primarily related to our EMEA segment which experienced an increase in project volumes.

North America Segment - North America segment revenues decreased 10.9% to $26.5 million for the thirty-nine weeks ended September 28, 2013 from $29.8 million for the thirty-nine weeks ended September 29, 2012. The reduction in revenues was primarily related to a reduction in demand for strategic consulting services and subject matter expert placements. During the thirty-nine weeks ended September 28, 2013, the North America segment provided services on 135 customer projects, compared to 142 projects performed in the thirty-nine weeks ended September 29, 2012. Average revenue per project was $197,000 in the thirty-nine weeks ended September 28, 2013, compared to $210,000 in the thirty-nine weeks ended September 29, 2012. Revenues recognized in connection with fixed price engagements totaled $17.1 million and $19.2 million for the thirty-nine weeks ended September 28, 2013 and September 29, 2012, representing 64.5% and 64.3% of the total revenues of the segment, respectively. There were no revenues from software licensing during both thirty-nine week periods ended September 28, 2013 and September 29, 2012.

EMEA Segment- EMEA segment revenues increased 44.9% to $14.9 million for the thirty-nine weeks ended September 28, 2013 from $10.2 million for the thirty-nine weeks ended September 29, 2012. The increase in revenues was primarily related to an increase in demand for consulting services and technical solutions. During the thirty-nine weeks ended September 28, 2013 and September 29, 2012, this segment provided services on 168 and 127 customer projects, respectively. Average revenue per project was approximately $77,000 and $64,000, respectively, for the thirty-nine weeks ended September 28, 2013 and September 29, 2012. Revenues from post-contract software related support services were approximately $1.9 million and $2.2 million for the thirty-nine weeks ended September 28, 2013 and September 29, 2012, respectively. Revenues from software licensing during the thirty-nine weeks ended September 28, 2013 and September 29, 2012 were immaterial.

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COST OF SERVICES

Cost of services increased 3.7% to $25.9 million for the thirty-nine weeks ended September 28, 2013 from $25.0 million for the thirty-nine weeks ended September 29, 2012. Our gross margin was 37.4% for the thirty-nine weeks ended September 28, 2013 compared to 37.6% for the thirty-nine weeks ended September 29, 2012. Cost of services during the thirty-nine weeks ended September 28, 2013 was $16.5 million and $9.4 million in our North America and EMEA segments, respectively. Cost of services during the thirty-nine weeks ended September 29, 2012 was $18.1 million and $6.9 million in our North America and EMEA segments, respectively. Our North America segment gross margin was 37.9% for the thirty-nine weeks ended September 28, 2013 compared to 39.2% for the thirty-nine weeks ended September 29, 2012. The decrease in gross margin in the first three quarters of 2013 as compared to the same period of 2012 in our North America segment is primarily due to a reduction in both revenues and utilization within our strategy consulting practice and increased pricing pressure by client supply chain groups for placement of subject matter experts. Our EMEA segment gross margin was 36.6% for the thirty-nine weeks ended September 28, 2013, compared to 32.8% for the thirty-nine weeks ended September 29, 2012. The increase in gross margin in the EMEA segment is primarily related to increases in revenues per project and higher staff utilization.

OPERATING EXPENSES

Selling, general and administrative expenses decreased 2.5% to $16.0 million for the thirty-nine weeks ended September 28, 2013, from $16.4 million for the thirty-nine weeks ended September 29, 2012. This decrease is primarily related to proactive measures taken by us to lower salary and other personnel related costs and reduce travel and entertainment expenditures to better align our cost structure with our customer base and core revenue generating activities, partially offset by additional non-cash compensation expense of $522,000 related to the performance-based non-vested shares described above.

INCOME TAXES

During the thirty-nine weeks ended September 28, 2013 and September 29, 2012, the Company recorded income tax provisions of $59,000 and $90,000, respectively. The income tax provisions for both periods are related to deferred taxes recognized on goodwill amortized for income tax purposes but not for financial reporting purposes. For the thirty-nine weeks ended September 28, 2013 and September 29, 2012, we recorded no income tax benefit related to our domestic and international pre-tax losses in accordance with the provisions of FASB ASC 740, "Income Taxes", which requires an estimation of our ability to use recorded deferred income tax assets. We currently have recorded a valuation allowance against all domestic and international deferred income tax assets generated due to uncertainty about their ultimate realization as a result of our history of operating losses. If we continue to report net operating losses for financial reporting in either our domestic or international operations, no additional tax benefit would be recognized for those losses, since we will not have accumulated enough positive evidence to support our ability to utilize the net operating loss carry-forwards in the future.

NET LOSS

We recorded a net loss of $0.6 million for the thirty-nine weeks ended September 28, 2013, compared to a net loss of $1.5 million for the thirty-nine weeks ended September 29, 2012.

STATEMENT REGARDING NON-GAAP FINANCIAL MEASUREMENT

In addition to net income (loss) and net income (loss) per share on a GAAP basis, our management uses a non-GAAP financial measure, "Non-GAAP adjusted net income or loss," in its evaluation of our performance, particularly when comparing performance to the prior year's period and on a sequential basis. This non-GAAP measure contains certain non-GAAP adjustments which are described in the following schedule entitled "Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income (Loss)." In making these non-GAAP adjustments, we take into account certain non-cash expenses and benefits, including tax effects as applicable, and the impact of certain items that are generally not expected to be on-going in nature or that are unrelated to our core operations. Management believes the exclusion of these items provides a useful basis for evaluating underlying business performance, but should not be considered in isolation and is not in accordance with, or a substitute for, evaluating our performance utilizing GAAP financial information. We believe that providing such adjusted results allows investors and other users of our financial statements to better understand our comparative operating performance for the periods presented. Our non-GAAP measure may differ from similar measures by other companies, even if similar terms are used to identify such measures. Although management believes the non-GAAP financial measure is useful in evaluating the performance of our business, we acknowledge that items excluded from such measure have a material impact on our net income (loss) and net income (loss) per share calculated in accordance with GAAP. Therefore, management uses non-GAAP measures in conjunction with GAAP results. Investors and other users of our financial information should also consider the above factors when evaluating our results.

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RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP ADJUSTED NET INCOME (LOSS)

(unaudited)

(in thousands, except per share data)

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	September 28,		September 29,		September 28,		September 29,
	2013		2012		2013		2012
Reconciliation of GAAP net income (loss) to non-GAAP adjusted net income (loss):
GAAP net income (loss)	$	30	$	142	$	(579)	$	(1,452)
Depreciation and amortization		168		181		503		589
Non-cash share based compensation expense		235		3		533		10
Tax effect of applicable non-GAAP adjustments (1)		20		30		59		90
Adjustments to GAAP net income (loss)		423		214		1,095		689
Non-GAAP adjusted net income (loss)	$	453	$	356	$	516	$	(763)
Reconciliation of GAAP net income (loss) per diluted common share to non-GAAP adjusted net income (loss) per diluted common share:
GAAP net income (loss) per diluted common share	$	0.00	$	0.02	$	(0.08)	$	(0.20)
Depreciation and amortization		0.03		0.03		0.07		0.08
Non-cash share based compensation expense		0.03		0.00		0.07		0.00
Tax effect of applicable non-GAAP adjustments (1)		0.00		0.00		0.01		0.01
Adjustments to GAAP net income (loss) per diluted common share		0.06		0.03		0.15		0.09
Non-GAAP adjusted net income (loss) per diluted common share	$	0.06	$	0.05	$	0.07	$	(0.11)
Weighted average shares used in calculation of Non-GAAP adjusted net income (loss) per diluted common share		7,216		7,107		7,189		7,100

(1) The Company calculated the tax effect of non-GAAP adjustments by applying an applicable estimated jurisdictional tax rate to each specific non-GAAP item after consideration of the Company’s valuation allowance.

LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating activities was $0.5 million for the thirty-nine weeks ended September 28, 2013 while net cash used in operating activities was $2.5 million for the thirty-nine weeks ended September 29, 2012. For the thirty-nine weeks ended September 28, 2013, cash provided by operating activities was primarily the result of $0.4 million of positive cash flows due to the results of operations (after adding back non-cash items to our net loss). During the thirty-nine weeks ended September 29, 2012, cash used in operating activities was the result of $0.8 million of negative cash flows due to the results of operations (after adding back non-cash items to our net loss) plus increases in net working capital other than cash of $1.7 million, primarily due to an increase in accounts receivable and decreases in accounts payable, partially offset by a decrease in prepaid and other assets and an increase in deferred revenue.

Net cash used in investing activities was $404,000 and $181,000 for the thirty-nine weeks ended September 28, 2013 and September 29, 2012, respectively, and is related to the purchase of office equipment, software and computer equipment.

Net cash provided by financing activities was $22,000 and $18,000 for the thirty-nine weeks ended September 28, 2013 and September 29, 2012, respectively, and is related to the issuance of stock through the employee stock purchase plan.

At September 28, 2013, we had approximately $12.3 million in cash and cash equivalents and $18.2 million in net working capital. At September 28, 2013, $2.5 million of our cash and cash equivalents were denominated in British pounds sterling, which we would be able to repatriate, if needed, without any negative U.S. income tax consequences. We believe we have sufficient cash and cash equivalents to meet anticipated cash requirements, including anticipated capital expenditures for at least the next 12 months. Furthermore, based on an analysis of our investments classified as cash equivalents, we do not believe that we have any material risk related to the liquidity or valuation of these investments, nor do we believe that we have any material counterparty credit risk related to these investments. Should our cash and cash equivalents prove insufficient, we may need to obtain new debt or equity financing to support our operations or complete acquisitions. In recent years, credit and capital markets have experienced unusual volatility and disruption. If we need to obtain new debt or equity financing to support our operations or complete acquisitions in the future, we may be unable to obtain debt or equity financing on reasonable terms. We have established a flexible model that provides a lower fixed cost structure than most consulting firms, enabling us to scale operating cost structures more quickly based on market conditions, although there is a lag in time required to scale the business appropriately if revenues are reduced. Our strong balance sheet has enabled us to make acquisitions and related investments in intellectual property and businesses we believe are enabling us to capitalize on the current transformation of the industry; however, if demand for our consulting services is reduced and we experience negative cash flow, we could experience liquidity challenges at some point in the future.

FINANCIAL COMMITMENTS

During fiscal year 2012, the Company renewed a purchase agreement, committing to purchase a minimum of $285,000 in computer software over a three year period ending in the first quarter of fiscal year 2015. As of September 28, 2013, the Company has an obligation of $143,000 remaining under this commitment.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

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ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures and Changes in Internal Control Over Financial Reporting

The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“the Exchange Act”)) that are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in SEC rules and forms; and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. We have established a Disclosure Committee, consisting of certain members of management, to assist in this evaluation. The Disclosure Committee meets on a regular quarterly basis, and as needed.

A review and evaluation was performed by our management, including the person serving as our Chief Executive Officer and Chief Financial Officer (the “CEO and CFO”), of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this quarterly report. Based upon this evaluation, the Company’s CEO and CFO has concluded that the Company’s disclosure controls and procedures were effective as of September 28, 2013.

There were no changes in our internal control over financial reporting during the fiscal quarter ended September 28, 2013, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

On January 10, 2012, Richard P. Nespola, the Company’s former chief executive officer, former chairman of the board and a former member of the Company’s Board of Directors, filed an action, Richard P. Nespola v. The Management Network Group, Inc., against the Company with the American Arbitration Association. In the action, Mr. Nespola claimed that the Company breached his employment agreement and an implied covenant of good faith and fair dealing by: (i) improperly deciding not to renew his employment agreement, and (ii) subsequently deciding to terminate his employment for cause. Mr. Nespola also claimed that the Company defamed him but subsequently withdrew that claim. An arbitration hearing on the action occurred in late October 2013. Mr. Nespola seeks in excess of $1.6 million in damages plus attorneys’ fees and costs. The Company has denied Mr. Nespola’s allegations, does not believe the action has any merit, and has defended against it vigorously. The Company is unable to reasonably estimate any possible loss or range of possible loss given the current status of the arbitration and given the inherent uncertainty in predicting an arbitration decision. A decision in this action is expected prior to January 31, 2014.

We have not been subject to any material new litigation since the filing on March 29, 2013 of our 2012 Form 10-K.

ITEM 1A.  RISK FACTORS

Not applicable

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4.  MINE SAFETY DISCLOSURES

None

ITEM 5.  OTHER INFORMATION

None

ITEM 6.  EXHIBITS

(a) Exhibits

Exhibit 10.1	First Amendment to Lease between SG 2007-FL14 NJOP Holdings LLC and the Company, dated June 19, 2013.
Exhibit 31	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32	Certifications furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101	101.INS XBRL Instance Document
	101.SCH XBRL Taxonomy Extension Schema Document
	101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
	101.DEF XBRL Taxonomy Extension Definition Linkbase Document
	101.LAB XBRL Taxonomy Extension Label Linkbase Document
	101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		The Management Network Group, Inc.
		(Registrant)
Date: November 12, 2013	By	/s/ Donald E. Klumb
		(Signature)
		Donald E. Klumb
		Chief Executive Officer (Principal executive officer),
		President, and Chief Financial Officer (Principal financial officer and
		principal accounting officer)

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EXHIBIT INDEX

Exhibit No.	Description of Exhibit
Exhibit 10.1	First Amendment to Lease between SG 2007-FL14 NJOP Holdings LLC and the Company, dated June 19, 2013.
Exhibit 31	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32	Certifications furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101	101.INS XBRL Instance Document
	101.SCH XBRL Taxonomy Extension Schema Document
	101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
	101.DEF XBRL Taxonomy Extension Definition Linkbase Document
	101.LAB XBRL Taxonomy Extension Label Linkbase Document
	101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

21

 

EX-10.1

FIRST AMENDMENT TO LEASE

THIS FIRST AMENDMENT TO LEASE (this “Amendment”) is dated solely for reference purposes as of June 19, 2013, between SG 2007-FL14 NJOP HOLDINGS LLC, a Delaware limited liability company (“Landlord”), and THE MANAGEMENT NETWORK GROUP, INC., a Delaware corporation (“Tenant”).

R E C I T A L S

A.             Landlord’s predecessor in title (I&G Garden State, L.L.C.) and Tenant entered into a certain Office Lease, dated as of October 13, 2008 (the “Lease”). Under the terms of the Lease, Landlord leases to Tenant approximately 2,910 rentable square feet (the “Premises”) in the building located at 400 Atrium Drive, Somerset, New Jersey (the “Building”).

B.             The parties desire to amend the Lease to provide for the extension of the Lease Term, and certain other agreements, all as set forth in and subject to the terms and conditions contained in this Amendment.

NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties agree as follows:

1.             Capitalized Terms. All capitalized terms which are not specifically defined in this Amendment and which are defined in the Lease will have the same meaning for purposes of this Amendment as they have in the Lease.

2.             Lease Term. Subject to the terms and conditions set forth in this Amendment, the Lease Term is hereby extended to expire on May 31, 2017. The period beginning March 1, 2014 and ending May 31, 2017 is referred to as the “Extension Term”.

3.             Rental.

(a)             The monthly amount of Base Rent and the portion of the Extension Term during which such monthly amount of Base Rent is payable will be determined from the following table. For convenience and ease of reference, the annual rental rate for the computation of Base Rent and the annual Base Rent also are set forth in tabular form with the annual Base Rent equaling the monthly Base Rent multiplied by 12. In the case of any conflict or inconsistency between the monthly Base Rent installment and the other illustrative figures set forth in tabular form or in any computations utilizing such figures, the monthly Base Rent installment so specified shall be controlling and conclusive.

Rentable Square Feet	2,910
Period	Annual Base Rent/ RSF	Annual Base Rent	Monthly Installments of Base Rent
March 1, 2014 through March 31, 2014	$0.00	$0.00	$0.00
April 1, 2014 through February 28, 2015	$21.00	$61,110.00	$5,092.50
March 1, 2015 through March 31, 2015	$0.00	$0.00	$0.00
April 1, 2015 through February 29, 2016	$21.50	$62,565.00	$5,213.75
March 1, 2016 through March 31, 2016	$0.00	$0.00	$0.00
April 1, 2016 through May 31, 2017	$22.00	$64,020.00	$5,335.00

(b)             During the Extension Term, Tenant will continue to pay Tenant’s Pro Rata Share of the amount by which Basic Costs for the applicable calendar year exceed Basic Costs for the Base Year. Effective as of March 1, 2014 (but not before that date), the “Base Year” will be changed to mean calendar year 2014.

(c)             Landlord has invoked and currently invokes its right, under Section 11.D of the Lease, to separately meter the electrical usage for the Premises. Accordingly, during the Extension Term, Tenant will pay for its electrical consumption pursuant to such Section 11.D of the Lease, in lieu of the Electricity Charge. Section 11.A of the Lease will not apply during the Extension Term.

1

4.             Condition of Premises. During the Extension Term, Landlord is leasing the Premises to Tenant “AS IS” and “With All Faults”, without any representations or warranties of any kind (including, without limitation, any express or implied warranties of merchantability, fitness or habitability). Landlord will not be obligated to perform any leasehold improvements to the Premises, or to provide any allowance therefor, in connection with this Amendment or the Extension Term.

5.             Option to Renew. Subject to the provisions set forth below, the Lease Term may be renewed, at the option of Tenant, for one (1) additional period of 36 months (the “Renewal Term”). The Renewal Term will be upon the same terms, covenants and conditions contained in the Lease as modified by this Amendment, except that: (i) the rent abatement rights set forth in this Amendment will not apply to the Renewal Term; (ii) Tenant will not be entitled to any further reduction in the Letter of Credit during the Renewal Term; (iii) Landlord will not be obligated to perform any leasehold improvements to the Premises, or to provide any allowance therefor, in connection with Tenant’s exercise of such option to renew; and (iv) the amount of Base Rent payable during the Renewal Term will be as set forth in this Section. Any reference in the Lease to the “Lease Term” will be deemed to include the Renewal Term and apply thereto, unless it is expressly provided otherwise. Tenant will be deemed to have accepted the Premises in “as-is” condition as of the commencement of the Renewal Term, it being understood that Landlord will have no obligation to renovate or remodel the Premises or any portion of the Building or provide any allowance therefor, as a result of Tenant’s renewal of the Lease. Tenant will have no renewal option beyond the aforesaid 36-month period.

             (a)             The initial Base Rent during the Renewal Term for the Premises will be at a rate equal to the then prevailing market rate for renewals as reasonably determined by Landlord for tenants with creditworthiness similar to that of Tenant, for comparable space in the Building, and for a term equal or comparable to the Renewal Term, taking into account only the size of space, location of the space within the building, signage rights, age, location of the building, quality of the building, and length of term. If fixed increases in base rent are then customary in the prevailing market, then the Base Rent will increase by fixed amounts on each anniversary of the commencement of the Renewal Term based on prevailing-market Base Rent increases applicable at the commencement of the Renewal Term, as reasonably determined by Landlord. Tenant’s obligation to pay Tenant’s Pro Rata Share of the amount by which Basic Costs for the applicable calendar year exceed Basic Costs for the Base Year, will continue during the Renewal Term. Tenant’s obligation to pay for its electrical consumption pursuant to Section 11.D of the Lease will continue during the Renewal Term.

             (b)             In order to exercise such option to renew, Tenant must first deliver an initial nonbinding notice to Landlord no later than 35 days before the Renewal Exercise Deadline (defined below), and earlier than 120 days before the Renewal Exercise Deadline, in which Tenant expresses its intention to exercise or interest in exercising such option to renew and requesting Landlord to provide its determination of prevailing market rent. Thereafter, Landlord will notify Tenant (“Landlord’s Notice”) of Landlord’s calculation of (i) the initial prevailing market rate of Base Rent for the Premises, which calculation will reflect the market rate that would be payable per annum for a term commencing on the first day of the Renewal Term, and (ii) the prevailing market rate of increase in Base Rent applicable for such Renewal Term, if any. If Tenant fails to give its initial nonbinding notice of intent to exercise its option to renew when due as provided in this Section 5, time being of the essence, Tenant will irrevocably be deemed to have waived such option to renew. Such calculation by Landlord will be final and will not be recalculated at the actual commencement of the Renewal Term (if any). For purposes hereof, the “Renewal Exercise Deadline” means May 31, 2016.

             (c)             On or before the Renewal Exercise Deadline, Tenant will deliver to Landlord a final binding notice in which Tenant (i) elects to renew the Lease and accepts the terms stated in Landlord’s Notice, or (ii) declines to renew the Lease term, in which case Tenant’s rights under this Section 5 will be null and void. If Tenant fails to notify Landlord by the Renewal Exercise Deadline as described above (after having given its initial nonbinding notice within the required time), time being of the essence, then Tenant’s rights under this Section 5 will be null and void. After Tenant delivers its binding notice exercising its option to renew, Landlord will deliver to Tenant an amendment to this Lease reflecting the terms of the renewal, and Tenant will execute such amendment and deliver it to Landlord within 60 days after receipt; provided, however, that Landlord’s failure to deliver the same, or Landlord’s or Tenant’s failure or refusal to execute and deliver such amendment, will not affect the validity or enforceability of Tenant’s exercise of such renewal option.

2

             (d)             Tenant’s right to exercise its option to renew this Lease pursuant to this Section 5 is subject to the following conditions: (i) that on the date that Tenant delivers notice of its election to exercise its option to renew, and at the commencement of the Renewal Term, Tenant is not in default under the Lease (after the giving of any required notice and expiration of any applicable cure period); (ii) that Tenant has not been in Monetary Default (hereinafter defined) under the Lease two or more times during the 24-month period immediately preceding the Renewal Exercise Deadline (For purposes of this Section 5 a “Monetary Default” means the failure of Tenant to pay any rent or any other sums of money due under the Lease within 5 days after notice of delinquency from Landlord); and (iii) that Tenant has not assigned the Lease or sublet the Premises or any portion thereof, at any time during the period commencing with the date that Tenant delivers its notice to Landlord of Tenant’s exercise of such option to renew and ending on the commencement date of the Renewal Term, or at any time prior to such period, if such assignment or sublease extends into such period.

6.             Options. Tenant acknowledges and agrees that, as of the date of this Amendment and notwithstanding anything to the contrary set forth in the Lease, Tenant shall have no extension, renewal, cancellation, termination, expansion, or other options whatsoever with regard to the Premises or under the Lease except for the renewal option set forth in this Amendment. In the event of a conflict between the terms and provisions of this Section 6, and any provision of the Lease, the terms and provisions of this Section 6 will control.

7.             Letter of Credit.

(a)             Section 36.A of the Lease is hereby replaced with the following:

A.             Tenant will deliver to Landlord contemporaneously with Tenant’s execution and delivery of this Lease an irrevocable letter of credit payable in Somerset, New Jersey, in the amount of the required Security Deposit set forth in Section 1.G of this Lease (subject to reduction as set forth in Section 36.F), issued for the benefit of the Landlord by a bank reasonably satisfactory to Landlord (the “Issuing Bank”) which: (i) has an A.M. Best Bank Deposit Rating of “a” or better; (ii) has a Standard & Poors Bank Survivability Assessment Rating of “A” or better; and (iii) has a Moody’s Bank Financial Strength Rating of” B+” or better, in each case without qualification by “-” or other reduction or negative qualification of such rating); provided, however, that Landlord approves UMB Bank, N.A. as the Issuing Bank so long as it maintains a Fitch short-term Issuer Default Rating of at least F1, and a Standard & Poor short-term counterparty credit rating of at least A-2 (collectively, the “L/C Issuer Requirements”). Notwithstanding that the Issuing Bank may have met the L/C Issuer Requirements upon issuance of the letter of credit, if, during the Lease Term, the Issuing Bank fails to meet the L/C Issuer Requirements, or if the Issuing Bank enters into any form of regulatory or governmental receivership or other similar regulatory or governmental proceeding including, without limitation, any receivership instituted or commenced by the Federal Deposit Insurance Corporation (FDIC) or is otherwise declared insolvent or downgraded by the FDIC or put on an FDIC “watchlist,” or if the financial condition of the Issuing Bank changes in any other materially adverse way, as reasonably determined by Landlord, then Tenant shall within 10 days after written notice from Landlord deliver to Landlord a replacement letter of credit which meets the requirements of this Section 36 and issued by an Issuing Bank meeting the L/C Issuer Requirements; Tenant’s failure to do so will, notwithstanding anything in this Lease to the contrary, constitute an Event of Default for which there will be no notice or grace or cure period applicable thereto (other than the aforesaid 10-day period), and will give Landlord the immediate right, without further notice to Tenant, to draw upon such letter of credit. If Tenant replaces such letter of credit pursuant to the foregoing, Landlord will, within 30 days after Landlord’s receipt of the replacement letter of credit, deliver to Tenant the letter of credit so replaced. Each letter of credit will be irrevocable for the term of such letter of credit and will provide that it is automatically renewable for a period ending not earlier than 60 days after the expiration of the Lease Term (the “Final L/C Expiration Date”) without any action whatsoever on the part of Landlord. However, the Issuing Bank will have the right not to renew said letter of credit on written notice to Landlord given not less than 60 days before the expiration of the then current term thereof (it being understood, however, that the privilege of the Issuing Bank not to renew said letter of credit will not, in any event, diminish the obligation of Tenant to maintain such irrevocable letter of credit with Landlord through the date which is sixty (60) days after the expiration of the Lease Term). Tenant must be the applicant of the letter of credit.

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(b)             On the condition that no Event of Default then exists and no condition exists which, with the giving of notice or passage of time of both, would constitute an Event of Default, as of March 1, 2014, Landlord will permit the required amount of the required Letter of Credit to be reduced beginning on March 1, 2014 to $10,185. Tenant will have sole responsibility for causing the amount of the Letter of Credit to be reduced in accordance with this Section. Landlord agrees to cooperate with Tenant to achieve such reduction, subject to the terms and conditions as set forth in this Section.

8.             Authority; Not Restricted. Landlord and Tenant each represent and warrant to the other that this Amendment has been duly authorized, executed and delivered by and on behalf of each party hereto and constitutes the valid and binding agreement of Landlord and Tenant in accordance with the terms hereof. Tenant warrants and represents to Landlord that Tenant is not, and shall not become, a person or entity with whom Landlord is restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including, but not limited to, those named on OFAC’s Specially Designated and Blocked Persons list) or under any statute, executive order (including, but not limited to, the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and shall not engage in any dealings or transaction or be otherwise associated with such persons or entities.

9.             Real Estate Brokers. Each party hereto hereby represents and warrants to the other that in connection with this Amendment, the party so representing and warranting has not dealt with any real estate broker, agent or finder, except for Jones Lang LaSalle Brokerage, Inc. and Cushman & Wakefield of New Jersey, Inc. (together, the “Brokers”), and, to its knowledge no other broker initiated or participated in the negotiation of this Amendment, submitted or showed the applicable premises to Tenant or is entitled to any commission in connection with this Amendment. Each party hereto will indemnify, defend and hold harmless the other against any and all claims, costs, liabilities and expenses (including, without limitation, reasonable attorneys’ fees) in connection with any inaccuracy in such party’s representation. Landlord hereby agrees that it will pay a commission to the Brokers according to a separate agreement.

10.             Stipulation. The Premises are stipulated for all purposes to contain the number of rentable square feet as set forth in this Amendment. Unless otherwise expressly provided herein, any statement of square footage set forth in this Amendment, or that may have been used in calculating rental, is an approximation which Landlord and Tenant agree is reasonable and the rental based thereon is not subject to revision whether or not the actual square footage is more or less.

11.             Counterparts. This Amendment may be executed in any number of counterparts and by each of the undersigned on separate counterparts, and each such counterpart will be deemed to be an original, but all such counterparts will together constitute but one and the same Amendment.

12.             Time of Essence. Time is of the essence of this Amendment.

13.             No Offer. Submission of this instrument for examination or negotiation will not bind Landlord, and no obligation on the part of Landlord will arise until this Amendment is executed and delivered by both Landlord and Tenant.

14.             Entire Agreement. This Amendment and the Lease contain all the terms, covenants, conditions and agreements between Landlord and Tenant relating to the extension of the Lease Term and the other matters provided for in this instrument. No prior or other agreement or understanding pertaining to such matters other than the Lease will be valid or of any force or effect. This Amendment may only be modified by an agreement in writing signed by Landlord and Tenant.

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15.             No Presumption. Landlord and Tenant understand, agree and acknowledge that (1) this Amendment has been freely negotiated by both parties, and (2) in any controversy, dispute or contest over the meaning, interpretation, validity or enforceability of this Amendment or any of its terms or conditions, there will be no inference, presumption or conclusion drawn whatsoever against either party by virtue of that party having drafted this Amendment or any portion thereof.

16.             Electronic Delivery. The parties agree that this agreement may be transmitted between them by facsimile machine or email. The parties intend that faxed or scanned signatures (such as, without limitation, scanned signatures in .pdf format) constitute original signatures and that a faxed or scanned agreement containing the signatures (original, faxed or scanned) of all the parties is binding on the parties.

17.             Limitation on Liability. The liability of Landlord to Tenant under this Amendment will be limited as provided in Section 35 of the Lease, which Section is incorporated herein by reference as though fully set forth herein.

[remainder of this page left intentionally blank]

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18.             Lease in Full Force and Effect. As modified hereby, the Lease and all of the terms and provisions thereof remain in full force and effect and are incorporated herein as if herein fully recited.

TENANT:		LANDLORD:
THE MANAGEMENT NETWORK GROUP, INC.		SG 2007-FL14 NJOP HOLDINGS LLC, a Delaware limited liability company
By:	/s/ Donald E. Klumb	By:	U.S. Bank National Association, as Trustee,
Name:	Donald E. Klumb		as Successor by Appointment to
Title:	CEO		LaSalle Bank National Association, as Trustee,
Date:	7/15/13		for the Benefit of the Holders of the COMM 2007-FL14
			Commercial Mortgage Pass-Through Certificates,
			its sole managing member
			By:	TriMont Real Estate Advisors, Inc., its Special Servicer
				By:	/s/ Christopher Cummings
				Name:	Christopher Cummings
				Title:	Vice President
				Date:	7/22/13

6

EX-31

EXHIBIT 31

CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Donald E. Klumb, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Management Network Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 12, 2013

By:	/s/ DONALD E. KLUMB
	CHIEF EXECUTIVE OFFICER, PRESIDENT, AND CHIEF
	FINANCIAL OFFICER

 

EX-32

EXHIBIT 32

CERTIFICATIONS FURNISHED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Donald E. Klumb, Chief Executive Officer, President and Chief Financial Officer of The Management Network Group, Inc. (the "Company"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1. The Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended September 28, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 12, 2013

By:	/s/ DONALD E. KLUMB
	CHIEF EXECUTIVE OFFICER, PRESIDENT, AND CHIEF
	FINANCIAL OFFICER

 

XML

Goodwill and Long-Lived Assets (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 28, 2013
Balance as of December 29, 2012	$ 8,160
Changes in foreign currency exchange rates	(27)
Balance as of September 28, 2013	8,133
North America [Member]
Balance as of December 29, 2012	3,947
Changes in foreign currency exchange rates	0
Balance as of September 28, 2013	3,947
EMEA [Member]
Balance as of December 29, 2012	4,213
Changes in foreign currency exchange rates	(27)
Balance as of September 28, 2013	$ 4,186

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) [Parenthetical] (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Share-based Compensation	$ 234	$ 3	$ 532	$ 10

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Income Taxes

9 Months Ended

Sep. 28, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

5. Income Taxes

During the thirteen weeks ended September 28, 2013 and September 29, 2012, the Company recorded income tax provisions of $20,000 and $30,000, respectively. During the thirty-nine weeks ended September 28, 2013 and September 29, 2012, the Company recorded income tax provisions of $59,000 and $90,000, respectively. The tax provisions for all periods presented are due to deferred taxes recognized on intangible assets amortized for income tax purposes but not for financial reporting purposes. The Company has reserved all of its domestic and international net deferred tax assets with a valuation allowance as of September 28, 2013 and December 29, 2012 in accordance with the provisions of FASB ASC 740, “Income Taxes," which requires an estimation of the recoverability of the recorded income tax asset balances. As of September 28, 2013, the Company has recorded $31.7 million of valuation allowances attributable to its net deferred tax assets.

The Company analyzes its uncertain tax positions pursuant to the provisions of FASB ASC 740 “Income Taxes.” There was no material activity related to the liability for uncertain tax positions during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012, and the Company has determined it does not have any material uncertain tax positions requiring reserves at September 28, 2013.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2000. As of September 28, 2013, the Company has no income tax examinations in process.

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Income Taxes (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Income Tax Expense (Benefit)	$ 20,000	$ 30,000	$ 59,000	$ 90,000
Deferred Tax Assets, Valuation Allowance	$ 31,700,000		$ 31,700,000

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Share-Based Compensation (Details) (USD $)	9 Months Ended
	Sep. 28, 2013
Equity Incentive Plan 1998 [Member]
Shares, Outstanding at December 29, 2012 (in shares)	347,293
Shares, Forfeited/cancelled (in shares)	(18,800)
Shares, Outstanding at September 28, 2013 (in shares)	328,493
Shares,Options vested and exercisable September 28, 2013 (in shares)	328,493
Weighted Average Exercise Price, Outstanding at December 29, 2012 (in dollars per share)	$ 10.60
Weighted Average Exercise Price, Forfeited/cancelled (in dollars per share)	$ 9.31
Weighted Average Exercise Price, Outstanding at September 28, 2013 (in dollars per share)	$ 10.67
Weighted Average Exercise Price, Options vested and exercisable at September 28, 2013 (in dollars per share)	$ 10.67
Supplemental Stock Plan 2000 [Member]
Shares, Outstanding at December 29, 2012 (in shares)	102,000
Shares, Forfeited/cancelled (in shares)	(19,400)
Shares, Outstanding at September 28, 2013 (in shares)	82,600
Shares,Options vested and exercisable September 28, 2013 (in shares)	82,600
Weighted Average Exercise Price, Outstanding at December 29, 2012 (in dollars per share)	$ 11.44
Weighted Average Exercise Price, Forfeited/cancelled (in dollars per share)	$ 11.88
Weighted Average Exercise Price, Outstanding at September 28, 2013 (in dollars per share)	$ 11.33
Weighted Average Exercise Price, Options vested and exercisable at September 28, 2013 (in dollars per share)	$ 11.33

XML

Commitments and Contingencies (Details Textual) (USD $)	9 Months Ended	12 Months Ended
	Sep. 28, 2013	Dec. 29, 2012 Software [Member]	Sep. 28, 2013 Software [Member]
Loss Contingency, Damages Sought, Value	$ 1,600,000
Long-Term Purchase Commitment, Amount		285,000
Long-term Purchase Commitment, Time Period (in years)		3
Long-term Purchase Commitment, Amount Outstanding			$ 143,000

XML

Basis of Reporting

9 Months Ended

Sep. 28, 2013

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

1. Basis of Reporting

The condensed consolidated financial statements and accompanying notes of The Management Network Group, Inc. and its subsidiaries (“TMNG,” “TMNG Global,” “we,” “us,” “our,” or the “Company”) as of September 28, 2013, and for the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012 are unaudited and reflect all normal recurring adjustments which are, in the opinion of management, necessary for the fair presentation of the Company’s condensed consolidated financial position, results of operations, and cash flows as of these dates and for the periods presented. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Consequently, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements nor those normally made in the Company’s Annual Report on Form 10-K. Accordingly, reference should be made to the Company’s annual consolidated financial statements and notes thereto for the fiscal year ended December 29, 2012, included in the Company’s 2012 Annual Report on Form 10-K (“2012 Form 10-K”) for additional disclosures, including a summary of the Company’s accounting policies. The Condensed Consolidated Balance Sheet as of December 29, 2012 has been derived from the audited Consolidated Balance Sheet at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Company has evaluated subsequent events for recognition or disclosure through the date these unaudited consolidated financial statements were issued.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The results of operations for the thirteen and thirty-nine weeks ended September 28, 2013 are not necessarily indicative of the results to be expected for the full year ending December 28, 2013.

Revenue Recognition - The Company recognizes revenue from time and materials consulting contracts in the period in which its services are performed. In addition to time and materials contracts, the Company's other types of contracts include fixed fee contracts. The Company recognizes revenues on milestone or deliverables-based fixed fee contracts and time and materials contracts not to exceed contract price using the percentage of completion-like method described by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605-35, "Revenue Recognition - Construction-Type and Production-Type Contracts". For fixed fee contracts where services are not based on providing deliverables or achieving milestones, the Company recognizes revenue on a straight-line basis over the period during which such services are expected to be performed. In connection with some fixed fee contracts, the Company may receive payments from customers that exceed revenues up to that point in time. The Company records the excess of receipts from customers over recognized revenue as deferred revenue. Deferred revenue is classified as a current liability to the extent it is expected to be earned within twelve months from the date of the balance sheet.

The FASB ASC 605-35 percentage-of-completion-like methodology involves recognizing revenue using the percentage of services completed, on a current cumulative cost to total cost basis, using a reasonably consistent profit margin over the period. Due to the longer term nature of these projects, developing the estimates of costs often requires significant judgment. Factors that must be considered in estimating the progress of work completed and ultimate cost of the projects include, but are not limited to, the availability of labor and labor productivity, the nature and complexity of the work to be performed, and the impact of delayed performance. If changes occur in delivery, productivity or other factors used in developing the estimates of costs or revenues, we revise our cost and revenue estimates, which may result in increases or decreases in revenues and costs, and such revisions are reflected in income in the period in which the facts that give rise to that revision become known.

The Company develops, installs and supports customer software in addition to its traditional consulting services. The Company recognizes revenue in connection with its software sales agreements under FASB ASC 985-605 “Software - Revenue Recognition”, utilizing the percentage of completion-like method described in FASB ASC 605-35. These agreements include software right-to-use licenses ("RTU's") and related customization and implementation services. Due to the long-term nature of software implementation and the extensive software customization based on normal customer specific requirements, both the RTU’s and implementation services are treated as a single element for revenue recognition purposes.

In addition to the professional services related to the customization and implementation of software, the Company also provides post-contract support ("PCS") services, including technical support and maintenance services. For those contracts that include PCS service arrangements which are not essential to the functionality of the software solution, the Company separates the FASB ASC 605-35 software services and PCS services utilizing the multiple-element arrangement model prescribed by FASB ASC 605-25, "Revenue Recognition - Multiple-Element Arrangements". FASB ASC 605-25 addresses the accounting treatment for an arrangement to provide the delivery or performance of multiple products and/or services where the delivery of a product or system or performance of services may occur at different points in time or over different periods of time. The Company utilizes FASB ASC 605-25 to separate the PCS service elements and allocate total contract consideration to the contract elements based on the relative fair value of those elements utilizing PCS renewal terms as evidence of fair value. Revenues from PCS services are recognized ratably on a straight-line basis over the term of the support and maintenance agreement.

Fair Value Measurement - For cash and cash equivalents, current trade receivables and current trade payables, the carrying amounts approximate fair value because of the short maturity of these items.

The Company utilizes the methods of fair value measurement as described in FASB ASC 820, “Fair Value Measurements” to value its financial assets and liabilities. As defined in FASB ASC 820, fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, FASB ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to level 3 inputs. 

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

Managed Services Implementation Revenues and Costs - For long-term managed service agreements, implementation efforts are often necessary to develop the software utilized to deliver the managed service. Costs of such implementation efforts may include internal and external costs for coding or customizing systems and costs for conversion of client data. We may invoice our clients for implementation fees at the go-live date of the underlying software. Lump sum implementation fees received from our clients are initially deferred and recognized on a pro-rata basis as services are provided. Specific, incremental and direct costs of implementation incurred prior to the services going live are deferred pursuant to FASB ASC 605-35-25 and amortized over the period that the related ongoing services revenue is recognized to the extent that the Company believes that the recoverability of the costs from the contract is probable. If a client terminates a managed services arrangement prior to the end of the contract, a loss on the contract may be recorded, if applicable, and any remaining deferred implementation revenues and costs would then be recognized into earnings generally over the remaining service period through the termination date. During the thirty-nine weeks ended September 28, 2013, implementation costs of $270,000 related to managed services contracts were deferred. No implementation costs related to managed services contracts were deferred during the thirteen or thirty-nine weeks ended September 29, 2012.

Research and Development and Software Development Costs - During the thirteen and thirty-nine weeks ended September 28, 2013, software development costs of $179,000 and $493,000, respectively, were expensed as incurred. During the thirteen and thirty-nine weeks ended September 29, 2012, software development costs of $80,000 and $420,000, respectively, were expensed as incurred. No software development costs were capitalized during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012.

Foreign Currency Transactions and Translation - Cartesian Ltd. and the international operations of Cambridge Strategic Management Group, Inc. conduct business primarily denominated in their respective local currency, which is their functional currency. Assets and liabilities have been translated to U.S. dollars at the period-end exchange rates. Revenues and expenses have been translated at exchange rates which approximate the average of the rates prevailing during each period. Translation adjustments are reported as a separate component of other comprehensive income (loss) in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Accumulated other comprehensive loss resulting from foreign currency translation adjustments totaled $4.0 million as of September 28, 2013 and December 29, 2012, and is included in Total Stockholders’ Equity in the Condensed Consolidated Balance Sheets. Assets and liabilities denominated in other than the functional currency of a subsidiary are re-measured at rates of exchange on the balance sheet date. Resulting gains and losses on foreign currency transactions are included in the Company’s results of operations. Realized and unrealized exchange gains and losses included in the results of operations were not significant during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012.

Earnings (Loss) Per Share - The Company calculates and presents earnings (loss) per share using a dual presentation of basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The weighted average number of common shares outstanding excludes treasury shares held by the Company. Diluted earnings (loss) per share is computed in the same manner except that the weighted average number of shares is increased for dilutive securities.

In accordance with the provisions of FASB ASC 260, "Earnings per Share," the Company uses the treasury stock method for calculating the dilutive effect of employee stock options and non-vested shares. The employee stock options and non-vested shares will have a dilutive effect under the treasury stock method only when average market value of the underlying Company common stock during the respective period exceeds the assumed proceeds. For share-based payment awards with a performance condition, the Company must first use the guidance on contingently issuable shares in FASB ASC 260-10 to determine whether the awards should be included in the computation of diluted earnings per share for the reporting period. For all non-vested performance-based awards, the Company determines the number of shares, if any, that would be issuable at the end of the reporting period if the end of the reporting period were the end of the contingency period. In applying the treasury stock method, assumed proceeds include the amount, if any, the employee must pay upon exercise, the amount of compensation cost for future services that the Company has not yet recognized, and the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the options and the vesting of non-vested shares. The Company has excluded the effect of 402,593 and 497,888 stock options in the calculation of diluted income per share for the thirteen weeks ended September 28, 2013 and September 29, 2012, respectively, as the effect would have been anti-dilutive. For the thirty-nine weeks ended September 28, 2013 and September 29, 2012, the Company has not included the effect of stock options and non-vested shares in the calculation of diluted loss per share as it reported a net loss for these periods and the effect would have been anti-dilutive.

Recent Accounting Pronouncements - In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“FASB ASU 2013-02”). The amendment in this update requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles to be reclassified in its entirety to net income. The provisions of FASB ASU 2013-02 are effective for annual and interim periods beginning after December 15, 2012. The adoption of the provisions of FASB ASU 2013-02 did not have a material impact on the Company's consolidated financial statements.

In July 2013, the FASB issued Accounting Standards Update No. 2013-11,Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“FASB ASU 2013-11”). The update requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The provisions of FASB ASU 2013-11 are effective for annual and interim periods beginning after December 15, 2013. The Company does not anticipate that the adoption of the provisions of FASB ASU 2013-11 will have a material impact on the Company's consolidated financial statements.

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Share-Based Compensation

9 Months Ended

Sep. 28, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

3. Share-Based Compensation

The Company issues stock option awards and non-vested share awards under its share-based compensation plans. The key provisions of the Company's share-based compensation plans are described in Note 3 to the Company's consolidated financial statements included in the 2012 Form 10-K.

The Company recognized no income tax benefits related to share-based compensation arrangements during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012.

1998 Equity Incentive Plan

Stock Options

A summary of the option activity under the Company's Amended and Restated 1998 Equity Incentive Plan (“1998 Plan”), as of September 28, 2013 and changes during the thirty-nine weeks then ended is presented below:

			Weighted
			Average
			Exercise
	Shares		Price
Outstanding at December 29, 2012		347,293	$	10.60
Forfeited/cancelled		(18,800)	$	9.31
Outstanding at September 28, 2013		328,493	$	10.67
Options vested and exercisable at September 28, 2013		328,493	$	10.67

There were no options granted during the thirty-nine weeks ended September 28, 2013.

Non-vested Shares

Service-Based Non-vested Share Awards - As of September 28, 2013 and December 29, 2012, the Company has 110,000 shares of non-vested stock outstanding that vest solely based on employee service. These shares have a weighted average grant date fair value of $2.26 and cliff vest after a one-year service period beginning on December 17, 2012.

The service-based non-vested share award for the 110,000 shares was valued at the date of grant, based on the closing market price of the Company’s common stock, and is being expensed using the straight-line method over the requisite service period (which is the vesting period of the award). During the thirteen and thirty-nine weeks ended September 28, 2013, the Company recorded $61,000 and $183,000, respectively, of stock-based compensation expense in connection with the service-based non-vested share awards granted in December 2012. As of September 28, 2013, there is an estimated $54,000 of unrecognized stock-based compensation expense, net of estimated forfeitures, related to the service-based non-vested share awards. The unrecognized compensation cost at September 28, 2013 is expected to be recognized over a period of 2.5 months.

Performance-Based Non-vested Share Awards - On April 8, 2013, the Company’s Board of Directors approved an equity incentive program under the 1998 Plan pursuant to which the Board of Directors granted performance-based non-vested share awards for a total of 800,000 shares of Common Stock to various executive officers and employees of the Company. All 800,000 non-vested shares have a grant date fair value of $3.14. The first potential vesting date is the Company's earnings release date for its 2014 first fiscal quarter and each subsequent potential vesting date is each of the Company's quarterly earnings release dates thereafter through the release date for the first quarter of 2017.  Shares not vested as of the release date for the first quarter of 2017 are forfeited. Except for termination of employment in certain circumstances following a change of control, the unvested portion of an award is forfeited upon any termination of employment. Under the terms of the awards, vesting is partially accelerated and each award is converted to a time-vested award upon a change of control of the Company. The holders of shares of non-vested share awards have all of the rights of stockholders of the Company, including the right to receive dividends and to vote the shares, until the shares are forfeited to the Company.

Stock-based compensation cost for performance-based non-vested share awards is measured at the grant date based on the fair value of shares expected to be earned at the end of the performance period, based on the closing market price of the Company’s common stock on the date of grant, and is recognized as expense using the straight-line method over the performance period based upon the probable number of shares expected to vest. The Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures. During the thirteen and thirty-nine weeks ended September 28, 2013, the Company recorded $170,000 and $340,000, respectively, of stock-based compensation expense in connection with the performance-based non-vested share awards granted in April 2013. As of September 28, 2013, there is an estimated $2.1 million of unrecognized stock-based compensation expense, net of estimated forfeitures, related to the performance-based non-vested share awards. The unrecognized compensation cost at September 28, 2013 is expected to be recognized over a period of 36 months. 

2000 Supplemental Stock Plan

A summary of the option activity under the Company's 2000 Supplemental Stock Plan (the "Supplemental Stock Plan") as of September 28, 2013 and changes during the thirty-nine weeks then ended is presented below:

			Weighted
			Average
			Exercise
	Shares		Price
Outstanding at December 29, 2012		102,000	$	11.44
Forfeited/cancelled		(19,400)	$	11.88
Outstanding at September 28, 2013		82,600	$	11.33
Options vested and exercisable at September 28, 2013		82,600	$	11.33

The Supplemental Stock Plan expired on May 23, 2010. No new awards will be issued pursuant to the plan. The outstanding awards issued pursuant to the Supplemental Stock Plan remain subject to the terms of the Supplemental Stock Plan following expiration of the plan.

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Commitments and Contingencies

9 Months Ended

Sep. 28, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

6. Commitments and Contingencies

On January 10, 2012, Richard P. Nespola, the Company’s former chief executive officer, former chairman of the board and a former member of the Company’s Board of Directors, filed an action, Richard P. Nespola v. The Management Network Group, Inc., against the Company with the American Arbitration Association. In the action, Mr. Nespola claimed that the Company breached his employment agreement and an implied covenant of good faith and fair dealing by: (i) improperly deciding not to renew his employment agreement, and (ii) subsequently deciding to terminate his employment for cause. Mr. Nespola also claimed that the Company defamed him but subsequently withdrew that claim. An arbitration hearing on the action occurred in late October 2013. Mr. Nespola seeks in excess of $1.6 million in damages plus attorneys’ fees and costs. The Company has denied Mr. Nespola’s allegations, does not believe the action has any merit, and has defended against it vigorously. The Company is unable to reasonably estimate any possible loss or range of possible loss given the current status of the arbitration and given the inherent uncertainty in predicting an arbitration decision. A decision in this action is expected prior to January 31, 2014.

In addition, the Company may become involved in various legal and administrative actions arising in the normal course of business. These could include actions brought by taxing authorities challenging the employment status of consultants utilized by the Company. In addition, future customer bankruptcies could result in additional claims on collected balances for professional services near the bankruptcy filing date. The resolution of any of such actions, claims, or the matters described above may have an impact on the financial results for the period in which they occur.

During fiscal year 2012, the Company renewed a purchase agreement, committing to purchase a minimum of $285,000 in computer software over a three year period ending in the first quarter of fiscal year 2015. As of September 28, 2013, the Company has an obligation of $143,000 remaining under this commitment.

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Business Segments and Major Customers

9 Months Ended

Sep. 28, 2013

Business Segments And Major Customers [Abstract]

Business Segments And Major Customers [Text Block]

4. Business Segments and Major Customers

The Company identifies its segments based on the way management organizes the Company to assess performance and make operating decisions regarding the allocation of resources. In accordance with the criteria in FASB ASC 280 "Segment Reporting," the Company has concluded it has two reportable segments: the North America segment and the EMEA segment. The North America segment is comprised of three operating segments (North America Cable and Broadband, North America Telecom and Strategy), which are aggregated into one reportable segment based on the similarity of their economic characteristics. The EMEA segment is a single reportable, operating segment that encompasses the Company’s operational, technology and software consulting services outside of North America. Both reportable segments offer management consulting, custom developed software, and technical services.

Management evaluates segment performance based upon income (loss) from operations, excluding share-based compensation (benefits), depreciation and intangibles amortization. There were no inter-segment revenues during the thirteen and thirty-nine weeks ended September 28, 2013 or September 29, 2012. In addition, in its administrative division, entitled “Not Allocated to Segments,” the Company accounts for non-operating activity and the costs of providing corporate and other administrative services to all the segments. Summarized financial information concerning the Company’s reportable segments is shown in the following table (amounts in thousands):

					Not
	North				Allocated to
	America		EMEA		Segments		Total
As of and for the thirty-nine weeks ended September 28, 2013:
Revenues	$	26,553	$	14,887			$	41,440
Income (loss) from operations		6,332		3,487	$	(10,342)		(523)
Total assets	$	6,026	$	6,241	$	22,854	$	35,121
For the thirteen weeks ended September 28, 2013:
Revenues	$	8,400	$	4,993			$	13,393
Income (loss) from operations		2,076		1,184	$	(3,211)		49
As of the fiscal year ended December 29, 2012
Total assets	$	7,519	$	5,243	$	22,554	$	35,316
As of and for the thirty-nine weeks ended September 29, 2012:
Revenues	$	29,806	$	10,271			$	40,077
Income (loss) from operations		8,233		1,563	$	(11,166)		(1,370)
Total assets	$	8,750	$	3,912	$	21,058	$	33,720
For the thirteen weeks ended September 29, 2012:
Revenues	$	9,219	$	3,514			$	12,733
Income (loss) from operations		2,616		608	$	(3,053)		171

Segment assets, regularly reviewed by management as part of its overall assessment of the segments’ performance, include both billed and unbilled trade accounts receivable, net of allowances, and certain other assets, if applicable. Assets not assigned to segments include cash and cash equivalents, current and non-current investments, property and equipment, goodwill and intangible assets and deferred tax assets, excluding deferred tax assets recognized on accounts receivable reserves, which are assigned to their segments.

In accordance with the provisions of FASB ASC 280-10, revenues earned in the United States and internationally based on the location where the services are performed are shown in the following table (amounts in thousands):

	For the Thirteen Weeks				For the Thirty-nine Weeks
	Ended				Ended
	September 28,		September 29,		September 28,		September 29,
	2013		2012		2013		2012
United States	$	7,818	$	8,647	$	25,338	$	28,335
International:
United Kingdom		5,246		3,225		14,609		9,553
Other		329		861		1,493		2,189
Total	$	13,393	$	12,733	$	41,440	$	40,077

Major customers in terms of significance to TMNG’s revenues (i.e. in excess of 10% of revenues) and accounts receivable were as follows (amounts in thousands).

	Revenues
	For the thirty-nine weeks				For the thirty-nine weeks
	ended September 28, 2013				ended September 29, 2012
	North				North
	America		EMEA		America		EMEA
Customer A	$	9,405			$	11,312
Customer B	$	4,980			$	4,499
Customer C	$	552	$	6,360	$	24	$	2,637
Customer D	$	3,948			$	4,850

	Revenues
	For the thirteen weeks				For the thirteen weeks
	ended September 28, 2013				ended September 29, 2012
	North				North
	America		EMEA		America		EMEA
Customer A	$	2,850			$	3,331
Customer B	$	1,302			$	1,442
Customer C	$	318	$	2,631	$	15	$	833
Customer D	$	1,260			$	1,526

	Accounts Receivable
	As of		As of
	September 28,		September 29,
	2013		2012
Customer A	$	1,903	$	2,837
Customer B	$	1,163	$	1,861
Customer C	$	3,659	$	1,018
Customer D	$	598	$	887

Revenues from the Company’s ten most significant customers accounted for 82.8% and 83.5% of revenues during the thirteen and thirty-nine weeks ended September 28, 2013, respectively. Revenues from the Company’s ten most significant customers accounted for approximately 82.4% and 81.7% of revenues during the thirteen and thirty-nine weeks ended September 29, 2012, respectively.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Revenues	$ 13,393	$ 12,733	$ 41,440	$ 40,077
Cost of services	8,350	7,814	25,940	25,018
Gross Profit	5,043	4,919	15,500	15,059
Selling, general and administrative expenses (includes non-cash share-based compensation expense of $234 and $3 for the thirteen weeks ended September 28, 2013 and September 29, 2012, respectively and $532 and $10 for the thirty-nine weeks ended September 28, 2013 and September 29, 2012, respectively)	4,994	4,748	16,023	16,429
Income (loss) from operations	49	171	(523)	(1,370)
Other income	1	1	3	8
Income (loss) before income taxes	50	172	(520)	(1,362)
Income tax provision	(20)	(30)	(59)	(90)
Net income (loss)	30	142	(579)	(1,452)
Other comprehensive income (loss):
Foreign currency translation adjustment	445	323	(3)	335
Comprehensive income (loss)	$ 475	$ 465	$ (582)	$ (1,117)
Net income (loss) per common share
Basic and diluted (in dollars per share)	$ 0.00	$ 0.02	$ (0.08)	$ (0.20)
Weighted average shares used in calculation of net income (loss) per common share
Basic (in shares)	7,130	7,104	7,124	7,100
Diluted (in shares)	7,216	7,107	7,124	7,100

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Share-Based Compensation (Tables)

9 Months Ended

Sep. 28, 2013

Equity Incentive Plan 1998 [Member]

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of the option activity under the Company's Amended and Restated 1998 Equity Incentive Plan (“1998 Plan”), as of September 28, 2013 and changes during the thirty-nine weeks then ended is presented below:

			Weighted
			Average
			Exercise
	Shares		Price
Outstanding at December 29, 2012		347,293	$	10.60
Forfeited/cancelled		(18,800)	$	9.31
Outstanding at September 28, 2013		328,493	$	10.67
Options vested and exercisable at September 28, 2013		328,493	$	10.67

Supplemental Stock Plan 2000 [Member]

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of the option activity under the Company's 2000 Supplemental Stock Plan (the "Supplemental Stock Plan") as of September 28, 2013 and changes during the thirty-nine weeks then ended is presented below:

			Weighted
			Average
			Exercise
	Shares		Price
Outstanding at December 29, 2012		102,000	$	11.44
Forfeited/cancelled		(19,400)	$	11.88
Outstanding at September 28, 2013		82,600	$	11.33
Options vested and exercisable at September 28, 2013		82,600	$	11.33

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (579)	$ (1,452)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	503	589
Share-based compensation	533	10
Deferred tax expense	59	90
Other	(75)	10
Other changes in operating assets and liabilities:
Accounts receivable, net	547	(1,058)
Prepaid and other assets	(275)	243
Trade accounts payable	678	(35)
Deferred revenue	(61)	110
Accrued liabilities	(866)	(976)
Net cash provided by (used in) operating activities	464	(2,469)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(404)	(181)
Net cash used in investing activities	(404)	(181)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock through employee stock purchase plan	22	18
Net cash provided by financing activities	22	18
Effect of exchange rate on cash and cash equivalents	43	74
Net increase (decrease) in cash and cash equivalents	125	(2,558)
Cash and cash equivalents, beginning of period	12,177	13,250
Cash and cash equivalents, end of period	12,302	10,692
Supplemental disclosure of cash flow information:
Accrued property and equipment additions	176	302
Leasehold improvements acquired through lease incentive	$ 113	$ 0

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 28, 2013	Dec. 29, 2012
ASSETS
Cash and cash equivalents	$ 12,302	$ 12,177
Accounts receivable, net	12,267	12,762
Prepaid and other current assets	891	658
Total current assets	25,460	25,597
NONCURRENT ASSETS:
Property and equipment, net	1,280	1,355
Goodwill	8,133	8,160
Other noncurrent assets	248	204
Total Assets	35,121	35,316
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	1,689	975
Accrued payroll, bonuses and related expenses	3,395	4,003
Deferred revenue	543	605
Other accrued liabilities	1,598	1,809
Total current liabilities	7,225	7,392
NONCURRENT LIABILITIES:
Deferred income tax liabilities	531	472
Other noncurrent liabilities	382	441
Total noncurrent liabilities	913	913
Commitments and contingencies (Note 6)
Total stockholders’ equity	26,983	27,011
Total Liabilities and Stockholders’ Equity	$ 35,121	$ 35,316

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Business Segments and Major Customers (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Entity Wide Information Percentage Revenue Contribution Top Ten Customers By Revenue Contribution	82.80%	82.40%	83.50%	81.70%

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Goodwill and Long-Lived Assets (Tables)

9 Months Ended

Sep. 28, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill [Table Text Block]

The changes in the carrying amount of goodwill for the thirty-nine weeks ended September 28, 2013 are as follows (in thousands):

	North
	America		EMEA		Total
Balance as of December 29, 2012	$	3,947	$	4,213	$	8,160
Changes in foreign currency exchange rates		-		(27)		(27)
Balance as of September 28, 2013	$	3,947	$	4,186	$	8,133

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Basis of Reporting (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012	Dec. 29, 2012
Implementation Costs			$ 270,000	$ 0
Software Development Costs	179,000	80,000	493,000	420,000
Foreign currency translation adjustment	$ 4,000,000		$ 4,000,000		$ 4,000,000
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	402,593	497,888

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Basis of Reporting (Policies)

9 Months Ended

Sep. 28, 2013

Accounting Policies [Abstract]

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition - The Company recognizes revenue from time and materials consulting contracts in the period in which its services are performed. In addition to time and materials contracts, the Company's other types of contracts include fixed fee contracts. The Company recognizes revenues on milestone or deliverables-based fixed fee contracts and time and materials contracts not to exceed contract price using the percentage of completion-like method described by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605-35, "Revenue Recognition - Construction-Type and Production-Type Contracts". For fixed fee contracts where services are not based on providing deliverables or achieving milestones, the Company recognizes revenue on a straight-line basis over the period during which such services are expected to be performed. In connection with some fixed fee contracts, the Company may receive payments from customers that exceed revenues up to that point in time. The Company records the excess of receipts from customers over recognized revenue as deferred revenue. Deferred revenue is classified as a current liability to the extent it is expected to be earned within twelve months from the date of the balance sheet.

The FASB ASC 605-35 percentage-of-completion-like methodology involves recognizing revenue using the percentage of services completed, on a current cumulative cost to total cost basis, using a reasonably consistent profit margin over the period. Due to the longer term nature of these projects, developing the estimates of costs often requires significant judgment. Factors that must be considered in estimating the progress of work completed and ultimate cost of the projects include, but are not limited to, the availability of labor and labor productivity, the nature and complexity of the work to be performed, and the impact of delayed performance. If changes occur in delivery, productivity or other factors used in developing the estimates of costs or revenues, we revise our cost and revenue estimates, which may result in increases or decreases in revenues and costs, and such revisions are reflected in income in the period in which the facts that give rise to that revision become known.

The Company develops, installs and supports customer software in addition to its traditional consulting services. The Company recognizes revenue in connection with its software sales agreements under FASB ASC 985-605 “Software - Revenue Recognition”, utilizing the percentage of completion-like method described in FASB ASC 605-35. These agreements include software right-to-use licenses ("RTU's") and related customization and implementation services. Due to the long-term nature of software implementation and the extensive software customization based on normal customer specific requirements, both the RTU’s and implementation services are treated as a single element for revenue recognition purposes.

In addition to the professional services related to the customization and implementation of software, the Company also provides post-contract support ("PCS") services, including technical support and maintenance services. For those contracts that include PCS service arrangements which are not essential to the functionality of the software solution, the Company separates the FASB ASC 605-35 software services and PCS services utilizing the multiple-element arrangement model prescribed by FASB ASC 605-25, "Revenue Recognition - Multiple-Element Arrangements". FASB ASC 605-25 addresses the accounting treatment for an arrangement to provide the delivery or performance of multiple products and/or services where the delivery of a product or system or performance of services may occur at different points in time or over different periods of time. The Company utilizes FASB ASC 605-25 to separate the PCS service elements and allocate total contract consideration to the contract elements based on the relative fair value of those elements utilizing PCS renewal terms as evidence of fair value. Revenues from PCS services are recognized ratably on a straight-line basis over the term of the support and maintenance agreement.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurement - For cash and cash equivalents, current trade receivables and current trade payables, the carrying amounts approximate fair value because of the short maturity of these items.

The Company utilizes the methods of fair value measurement as described in FASB ASC 820, “Fair Value Measurements” to value its financial assets and liabilities. As defined in FASB ASC 820, fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, FASB ASC 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to level 3 inputs. 

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

Managed Services Implementation Revenues and Costs [Policy Text Block]

Managed Services Implementation Revenues and Costs - For long-term managed service agreements, implementation efforts are often necessary to develop the software utilized to deliver the managed service. Costs of such implementation efforts may include internal and external costs for coding or customizing systems and costs for conversion of client data. We may invoice our clients for implementation fees at the go-live date of the underlying software. Lump sum implementation fees received from our clients are initially deferred and recognized on a pro-rata basis as services are provided. Specific, incremental and direct costs of implementation incurred prior to the services going live are deferred pursuant to FASB ASC 605-35-25 and amortized over the period that the related ongoing services revenue is recognized to the extent that the Company believes that the recoverability of the costs from the contract is probable. If a client terminates a managed services arrangement prior to the end of the contract, a loss on the contract may be recorded, if applicable, and any remaining deferred implementation revenues and costs would then be recognized into earnings generally over the remaining service period through the termination date. During the thirty-nine weeks ended September 28, 2013, implementation costs of $270,000 related to managed services contracts were deferred. No implementation costs related to managed services contracts were deferred during the thirteen or thirty-nine weeks ended September 29, 2012.

Research, Development, and Computer Software, Policy [Policy Text Block]

Research and Development and Software Development Costs - During the thirteen and thirty-nine weeks ended September 28, 2013, software development costs of $179,000 and $493,000, respectively, were expensed as incurred. During the thirteen and thirty-nine weeks ended September 29, 2012, software development costs of $80,000 and $420,000, respectively, were expensed as incurred. No software development costs were capitalized during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Transactions and Translation - Cartesian Ltd. and the international operations of Cambridge Strategic Management Group, Inc. conduct business primarily denominated in their respective local currency, which is their functional currency. Assets and liabilities have been translated to U.S. dollars at the period-end exchange rates. Revenues and expenses have been translated at exchange rates which approximate the average of the rates prevailing during each period. Translation adjustments are reported as a separate component of other comprehensive income (loss) in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Accumulated other comprehensive loss resulting from foreign currency translation adjustments totaled $4.0 million as of September 28, 2013 and December 29, 2012, and is included in Total Stockholders’ Equity in the Condensed Consolidated Balance Sheets. Assets and liabilities denominated in other than the functional currency of a subsidiary are re-measured at rates of exchange on the balance sheet date. Resulting gains and losses on foreign currency transactions are included in the Company’s results of operations. Realized and unrealized exchange gains and losses included in the results of operations were not significant during the thirteen and thirty-nine weeks ended September 28, 2013 and September 29, 2012.

Earnings Per Share, Policy [Policy Text Block]

Earnings (Loss) Per Share - The Company calculates and presents earnings (loss) per share using a dual presentation of basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The weighted average number of common shares outstanding excludes treasury shares held by the Company. Diluted earnings (loss) per share is computed in the same manner except that the weighted average number of shares is increased for dilutive securities.

In accordance with the provisions of FASB ASC 260, "Earnings per Share," the Company uses the treasury stock method for calculating the dilutive effect of employee stock options and non-vested shares. The employee stock options and non-vested shares will have a dilutive effect under the treasury stock method only when average market value of the underlying Company common stock during the respective period exceeds the assumed proceeds. For share-based payment awards with a performance condition, the Company must first use the guidance on contingently issuable shares in FASB ASC 260-10 to determine whether the awards should be included in the computation of diluted earnings per share for the reporting period. For all non-vested performance-based awards, the Company determines the number of shares, if any, that would be issuable at the end of the reporting period if the end of the reporting period were the end of the contingency period. In applying the treasury stock method, assumed proceeds include the amount, if any, the employee must pay upon exercise, the amount of compensation cost for future services that the Company has not yet recognized, and the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of the options and the vesting of non-vested shares. The Company has excluded the effect of 402,593 and 497,888 stock options in the calculation of diluted income per share for the thirteen weeks ended September 28, 2013 and September 29, 2012, respectively, as the effect would have been anti-dilutive. For the thirty-nine weeks ended September 28, 2013 and September 29, 2012, the Company has not included the effect of stock options and non-vested shares in the calculation of diluted loss per share as it reported a net loss for these periods and the effect would have been anti-dilutive.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements - In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“FASB ASU 2013-02”). The amendment in this update requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles to be reclassified in its entirety to net income. The provisions of FASB ASU 2013-02 are effective for annual and interim periods beginning after December 15, 2012. The adoption of the provisions of FASB ASU 2013-02 did not have a material impact on the Company's consolidated financial statements.

In July 2013, the FASB issued Accounting Standards Update No. 2013-11,Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“FASB ASU 2013-11”). The update requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The provisions of FASB ASU 2013-11 are effective for annual and interim periods beginning after December 15, 2013. The Company does not anticipate that the adoption of the provisions of FASB ASU 2013-11 will have a material impact on the Company's consolidated financial statements.

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Goodwill and Long-Lived Assets

9 Months Ended

Sep. 28, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

2. Goodwill and Long-Lived Assets

The changes in the carrying amount of goodwill for the thirty-nine weeks ended September 28, 2013 are as follows (in thousands):

	North
	America		EMEA		Total
Balance as of December 29, 2012	$	3,947	$	4,213	$	8,160
Changes in foreign currency exchange rates		-		(27)		(27)
Balance as of September 28, 2013	$	3,947	$	4,186	$	8,133

The Company evaluates goodwill for impairment on an annual basis on the last day of the first fiscal month of the fourth quarter and whenever events or circumstances indicate that these assets may be impaired. The Company performs its impairment testing for goodwill in accordance with FASB ASC 350, “Intangibles-Goodwill and Other.” Management determined that there were no events or changes in circumstances during the thirteen or thirty-nine weeks ended September 28, 2013 which indicated that goodwill needed to be tested for impairment during the period.

The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets might not be recoverable in accordance with the provisions of FASB ASC 360, “Property, Plant and Equipment.” Management determined that there were no events or changes in circumstances during the thirteen or thirty-nine weeks ended September 28, 2013 which indicated that long-lived assets needed to be reviewed for impairment during the period.

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Share-Based Compensation (Details Textual) (Equity Incentive Plan 1998 [Member], USD $)	3 Months Ended	9 Months Ended
	Sep. 28, 2013	Sep. 28, 2013	Dec. 29, 2012
Service Based Non vested Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)	110,000	110,000	110,000
Weighted Average Grant Date Fair Value, Granted (in dollars per share)	$ 2.26	$ 2.26	$ 2.26
Allocated Share-based Compensation Expense	$ 61,000	$ 183,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	54,000	54,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		2 months 15 days
Performance Based Non vested Share Awards [Member]
Allocated Share-based Compensation Expense	170,000	340,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 2,100,000	$ 2,100,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		36 months
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		800,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 3.14

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Business Segments and Major Customers (Tables)

9 Months Ended

Sep. 28, 2013

Business Segments And Major Customers [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Summarized financial information concerning the Company’s reportable segments is shown in the following table (amounts in thousands):

					Not
	North				Allocated to
	America		EMEA		Segments		Total
As of and for the thirty-nine weeks ended September 28, 2013:
Revenues	$	26,553	$	14,887			$	41,440
Income (loss) from operations		6,332		3,487	$	(10,342)		(523)
Total assets	$	6,026	$	6,241	$	22,854	$	35,121
For the thirteen weeks ended September 28, 2013:
Revenues	$	8,400	$	4,993			$	13,393
Income (loss) from operations		2,076		1,184	$	(3,211)		49
As of the fiscal year ended December 29, 2012
Total assets	$	7,519	$	5,243	$	22,554	$	35,316
As of and for the thirty-nine weeks ended September 29, 2012:
Revenues	$	29,806	$	10,271			$	40,077
Income (loss) from operations		8,233		1,563	$	(11,166)		(1,370)
Total assets	$	8,750	$	3,912	$	21,058	$	33,720
For the thirteen weeks ended September 29, 2012:
Revenues	$	9,219	$	3,514			$	12,733
Income (loss) from operations		2,616		608	$	(3,053)		171

Schedule of Revenue from External Customers by Geographical Areas [Table Text Block]

In accordance with the provisions of FASB ASC 280-10, revenues earned in the United States and internationally based on the location where the services are performed are shown in the following table (amounts in thousands):

	For the Thirteen Weeks				For the Thirty-nine Weeks
	Ended				Ended
	September 28,		September 29,		September 28,		September 29,
	2013		2012		2013		2012
United States	$	7,818	$	8,647	$	25,338	$	28,335
International:
United Kingdom		5,246		3,225		14,609		9,553
Other		329		861		1,493		2,189
Total	$	13,393	$	12,733	$	41,440	$	40,077

Schedule of Revenue and Accounts Receivable by Major Customers by Reporting Segments [Table Text Block]

Major customers in terms of significance to TMNG’s revenues (i.e. in excess of 10% of revenues) and accounts receivable were as follows (amounts in thousands).

	Revenues
	For the thirty-nine weeks				For the thirty-nine weeks
	ended September 28, 2013				ended September 29, 2012
	North				North
	America		EMEA		America		EMEA
Customer A	$	9,405			$	11,312
Customer B	$	4,980			$	4,499
Customer C	$	552	$	6,360	$	24	$	2,637
Customer D	$	3,948			$	4,850

	Revenues
	For the thirteen weeks				For the thirteen weeks
	ended September 28, 2013				ended September 29, 2012
	North				North
	America		EMEA		America		EMEA
Customer A	$	2,850			$	3,331
Customer B	$	1,302			$	1,442
Customer C	$	318	$	2,631	$	15	$	833
Customer D	$	1,260			$	1,526

	Accounts Receivable
	As of		As of
	September 28,		September 29,
	2013		2012
Customer A	$	1,903	$	2,837
Customer B	$	1,163	$	1,861
Customer C	$	3,659	$	1,018
Customer D	$	598	$	887

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Business Segments and Major Customers (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Customer A [Member]
Accounts Receivable, Major Customer, Amount	$ 1,903	$ 2,837	$ 1,903	$ 2,837
Customer B [Member]
Accounts Receivable, Major Customer, Amount	1,163	1,861	1,163	1,861
Customer C [Member]
Accounts Receivable, Major Customer, Amount	3,659	1,018	3,659	1,018
Customer D [Member]
Accounts Receivable, Major Customer, Amount	598	887	598	887
North America [Member] | Customer A [Member]
Revenue, Major Customer, Amount	2,850	3,331	9,405	11,312
North America [Member] | Customer B [Member]
Revenue, Major Customer, Amount	1,302	1,442	4,980	4,499
North America [Member] | Customer C [Member]
Revenue, Major Customer, Amount	318	15	552	24
North America [Member] | Customer D [Member]
Revenue, Major Customer, Amount	1,260	1,526	3,948	4,850
EMEA [Member] | Customer C [Member]
Revenue, Major Customer, Amount	$ 2,631	$ 833	$ 6,360	$ 2,637

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Business Segments and Major Customers (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012	Dec. 29, 2012
Revenues	$ 13,393	$ 12,733	$ 41,440	$ 40,077
Income (loss) from operations	49	171	(523)	(1,370)
Total assets	35,121	33,720	35,121	33,720	35,316
North America [Member]
Revenues	8,400	9,219	26,553	29,806
Income (loss) from operations	2,076	2,616	6,332	8,233
Total assets	6,026	8,750	6,026	8,750	7,519
EMEA [Member]
Revenues	4,993	3,514	14,887	10,271
Income (loss) from operations	1,184	608	3,487	1,563
Total assets	6,241	3,912	6,241	3,912	5,243
Unallocated Amount To Segment [Member]
Income (loss) from operations	(3,211)	(3,053)	(10,342)	(11,166)
Total assets	$ 22,854	$ 21,058	$ 22,854	$ 21,058	$ 22,554

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Document And Entity Information	9 Months Ended
	Sep. 28, 2013	Nov. 07, 2013
Document Information [Line Items]
Entity Registrant Name	MANAGEMENT NETWORK GROUP INC
Entity Central Index Key	0001094814
Current Fiscal Year End Date	--12-28
Entity Filer Category	Smaller Reporting Company
Trading Symbol	TMNG
Entity Common Stock, Shares Outstanding		8,051,382
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 28, 2013
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2013

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Business Segments and Major Customers (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 28, 2013	Sep. 29, 2012	Sep. 28, 2013	Sep. 29, 2012
Revenues	$ 13,393	$ 12,733	$ 41,440	$ 40,077
United States [Member]
Revenues	7,818	8,647	25,338	28,335
United Kingdom [Member]
Revenues	5,246	3,225	14,609	9,553
Other Location [Member]
Revenues	$ 329	$ 861	$ 1,493	$ 2,189