Exhibit 99.1
[GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE
CONTACT:
THE MANAGEMENT NETWORK GROUP, INC. OR BRAINERD COMMUNICATORS
Regina Whitley Brian Schaffer (Investors)
regina.whitley@tmng.com schaffer@braincomm.com
800.876.5329 x340 Ray Yeung (Media)
yeung@braincomm.com
212.986.6667
TMNG REPORTS 2005 FIRST QUARTER RESULTS
OVERLAND PARK, KS - MAY 5, 2005 - The Management Network Group, Inc. (Nasdaq:
TMNG), a leading provider of management consulting services to the global
communications industry, today reported financial results for its 2005 first
quarter ended April 2, 2005.
Revenue of $7.1 million in the first quarter of 2005 rose by 22.4%, compared
with revenue of $5.8 million in the first quarter of 2004. On a sequential basis
revenue increased 14.5%, compared with revenue of $6.2 million reported in the
fourth quarter of 2004. During the quarter, gross margin improved to 51.5%,
compared with 48.7% in the first quarter of 2004 and 47.2% in the fourth quarter
of 2004.
TMNG reported a net loss of $608,000, or $0.02 per diluted share for the first
quarter of 2005, compared with a net loss of $4.3 million, or $0.12 per diluted
share in last year's first quarter. The first quarter of 2004 included a net
loss from discontinued operations of $2.3 million, or $0.06 per diluted share.
Loss from continuing operations during the first quarter of 2004 was $2.0
million or $0.06 per diluted share.
The company ended the first quarter with a strong cash and short-term
investments position of $51.3 million, virtually no long-term debt,
stockholders' equity of $66.5 million, and working capital of approximately
$54.7 million.
"Our first quarter results reflect the continued momentum that we have been
gaining since the second half of 2004. We see that positive traction continuing
into the next quarter," said Rich Nespola, TMNG Chairman and CEO. "Our company
continues to transform itself to address a new emerging communications
marketplace that is being propelled by wireless and internet protocol
technologies. With our extensive wireless and IP expertise, and our strategic
ability to help clients define where the market is moving, TMNG is well
positioned to make further inroads in this expanding and important market
segment. Our pipeline and bookings continue to strengthen, and we remain focused
on generating increasing revenue over a conservative expense base to drive a
return to sustained profitability."
CONFERENCE CALL
TMNG will host a conference call at 5:00 p.m. ET today to discuss 2005 first
quarter results. Investors can access the conference call via a live webcast on
the company's website, www.tmng.com, or by dialing 877-297-4509. A replay of the
conference call will be archived on the company's website for one week.
Additionally, the archived call can be accessed by dialing 877-519-4471, pin
number 5983442, through May 13, 2005.
ABOUT TMNG
The Management Network Group, Inc. (Nasdaq: TMNG) is a leading provider of
strategy, management, marketing, and operational consulting services to the
global communications industry. With more than 400 consultants worldwide, TMNG
serves communications service providers, technology companies, and financial
services firms. Since the company's inception in 1990, TMNG and its subsidiaries
- - TMNG Strategy, TMNG Marketing, TMNG Operations and TMNG Europe - have served
more than 1,000 clients worldwide, including all the Fortune 500
telecommunications companies. TMNG is headquartered in Overland Park, Kansas,
with offices in Boston, Chicago, London, New York, San Francisco, and
Washington, D.C. TMNG can be reached at 1.888.480.TMNG (8664) or online at
http://www.tmng.com.
THIS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS
INVOLVE RISKS AND UNCERTAINTIES. IN PARTICULAR, ANY STATEMENTS CONTAINED HEREIN
REGARDING EXPECTATIONS WITH RESPECT TO FUTURE BUSINESS, REVENUES OR
PROFITABILITY ARE SUBJECT TO KNOWN AND UNKNOWN RISKS, UNCERTAINTIES, AND
CONTINGENCIES, MANY OF WHICH ARE BEYOND THE COMPANY'S CONTROL, WHICH MAY CAUSE
ACTUAL RESULTS, PERFORMANCE, OR ACHIEVEMENTS TO DIFFER MATERIALLY FROM THOSE
PROJECTED OR IMPLIED IN SUCH FORWARD-LOOKING STATEMENTS. FACTORS THAT MIGHT
AFFECT ACTUAL RESULTS, PERFORMANCE, OR ACHIEVEMENTS INCLUDE, AMONG OTHER THINGS,
CONDITIONS IN THE TELECOMMUNICATIONS INDUSTRY, OVERALL ECONOMIC AND BUSINESS
CONDITIONS, THE DEMAND FOR THE COMPANY'S SERVICES, AND TECHNOLOGICAL ADVANCES
AND COMPETITIVE FACTORS IN THE MARKETS IN WHICH THE COMPANY COMPETES. THESE
RISKS AND UNCERTAINTIES ARE DESCRIBED IN DETAIL FROM TIME TO TIME IN TMNG'S
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
(Please see attached financial tables)
THE MANAGEMENT NETWORK GROUP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
QUARTER ENDED
April 2, 2005 April 3, 2004
Revenues $ 7,067 $ 5,779
Cost of services:
Direct cost of services 3,394 2,913
Equity related charges 35 54
--------------- ----------------
Total 3,429 2,967
Gross profit 3,638 2,812
Operating expenses:
Selling, general and administrative 4,025 4,097
Real estate restructuring 75 -
Equity related charges 188 283
Depreciation and amortization 282 520
--------------- -----------------
Total 4,570 4,900
--------------- -----------------
Loss from continuing operations (932) (2,088)
Other income, net 339 127
--------------- -----------------
Loss from continuing operations before
income tax provision (593) (1,961)
Income tax provision (15) (14)
--------------- -----------------
Loss from continuing operations (608) (1,975)
--------------- -----------------
Net loss from discontinued operations - (2,276)
--------------- -----------------
Net loss $ (608) (4,251)
=============== =================
Loss from continuing operations per common share
Basic and diluted $ (0.02) $ (0.06)
=============== =================
Loss from discontinued operations per common share
Basic and diluted - (0.06)
=============== =================
Net loss per common share
Basic and diluted $ (0.02) $ (0.12)
=============== =================
Shares used in calculation of net loss per common
share
Basic and diluted 34,977 34,503
=============== =================
THE MANAGEMENT NETWORK GROUP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS)
ASSETS
January 1,
April 2, 2005 2005
CURRENT ASSETS:
Cash and cash equivalents $ 12,741 $ 10,882
Short-term investments 38,550 41,300
Receivables, net 7,130 6,178
Refundable income taxes 179 769
Other assets 1,109 1,176
---------------- ----------------
Total current assets 59,709 60,305
GOODWILL 13,365 13,365
INTANGIBLES, net 327 487
PROPERTY & EQUIPMENT, net 1,027 896
OTHER ASSETS 300 300
---------------- ----------------
TOTAL ASSETS $ 74,728 $ 75,353
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable $ 555 $ 845
Accrued liabilities and other 4,457 4,339
---------------- ----------------
Total current liabilities 5,012 5,184
NONCURRENT LIABILITIES 3,266 3,422
STOCKHOLDERS' EQUITY 66,450 66,747
---------------- ----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 74,728 $ 75,353
================ ================
# # #