Exhibit 99.1
[GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE
CONTACT:
THE MANAGEMENT NETWORK GROUP, INC. OR BRAINERD COMMUNICATORS
Janet Hall Corey Kinger (Investors)
JANET.HALL@TMNG.COM KINGER@BRAINCOMM.COM
800.876.5329 x340 Olga Shmuklyer (Media)
SHMUKLYER@BRAINCOMM.COM
212.986.6667
TMNG REPORTS 2005 THIRD QUARTER RESULTS
OVERLAND PARK, KS - NOVEMBER 8, 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
third quarter ended October 1, 2005.
Revenue in the third quarter of 2005 increased 23.1% to $8.1 million, compared
with revenue of $6.5 million in the third quarter of 2004. During the quarter,
gross margin improved to 52.1%, compared with 46.7% in the third quarter of 2004
and 49.5% in the second quarter of 2005. TMNG reported roughly breakeven results
on a diluted share basis for the third quarter of 2005, compared with a net loss
of $1.1 million, or $0.03 per diluted share in last year's third quarter.
For the nine months ended October 1, 2005, revenue increased 37.9% to $24.1
million, compared with $17.5 million in the first nine months of 2004. During
the same period gross margin was 51.0%, compared with 47.2% in the comparable
year-ago period. Net loss for the first nine months of 2005 was $554,000, or
$0.02 per diluted share, compared with a net loss of $7.5 million or $0.22 per
diluted share in first nine months of 2004, which includes a $0.07 per diluted
share loss from discontinued operations.
The company ended the third quarter with a strong cash and short-term
investments position of $52.3 million, working capital of approximately $55.2
million, virtually no long-term debt, and stockholders' equity of $67.1 million.
"Third quarter performance, while slightly softer than we had expected,
nonetheless continued a strong year-over-year trend compared with 2004," said
Rich Nespola, TMNG Chairman and CEO. "Our business has shown momentum throughout
2005 driven by the accelerating migration of service providers of all stripes to
wireless and internet protocol platforms. These are areas where TMNG offers
superior depth of knowledge and breadth of service offerings. While fourth
quarter financial performance is often subject to holiday-related seasonality,
we are seeing recent momentum in engagement opportunities as we begin our 2006
planning, particularly in wireless strategy engagements; our MVNE offering where
we just signed our first engagement; and merger integration work."
CONFERENCE CALL
TMNG will host a conference call at 5:00 p.m. ET today to discuss 2005 third
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, passcode
6646498. A replay of the conference call will be archived on the company's
website for one week. Additionally, a replay of the call will be available by
dialing 877-519-4471, passcode 6646498, through November 16, 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 Year-to-Date
October 1, 2005 October 2, 2004 October 1, 2005 October 2, 2004
Revenues $ 8,057 $ 6,546 $ 24,141 $ 17,509
Cost of services:
Direct cost of services 3,846 3,441 11,759 9,093
Equity related charges 12 51 81 157
------- ------- -------- --------
Total 3,858 3,492 11,840 9,250
Gross profit 4,199 3,054 12,301 8,259
Operating expenses:
Selling, general and administrative 4,359 3,694 12,916 11,798
Real estate restructuring 75
Equity related charges 60 261 448 776
Depreciation and amortization 167 384 622 1,294
------- ------- -------- --------
Total 4,586 4,339 14,061 13,868
------- ------- -------- --------
Loss from continuing operations (387) (1,285) (1,760) (5,609)
Other income, net 424 179 1,237 445
------- ------- -------- --------
Income (loss) from continuing
operations before income
tax provision 37 (1,106) (523) (5,164)
Income tax provision (13) (13) (31) (47)
------- ------- -------- --------
Income (loss) from continuing
operations $ 24 $(1,119) $ (554) (5,211)
Net loss from discontinued operations (2,276)
------- ------- -------- --------
Net income (loss) $ 24 $(1,119) $ (554) $ (7,487)
======= ======= ======== ========
Income (loss) from continuing
operations per common share
Basic and diluted $ 0.00 $ (0.03) $ (0.02) $ (0.15)
======= ======= ======== ========
Net loss from discontinued operations
per common share
Basic and diluted $ (0.07)
======= ======= ======== ========
Net income (loss) per common share
Basic and diluted $ 0.00 $ (0.03) $ (0.02) $ (0.22)
======= ======= ======== ========
Shares used in calculation of net
income (loss) per
common share
Basic 35,156 34,631 35,079 34,586
======= ======= ======== ========
Diluted 35,525 34,631 37,079 34,586
======= ======= ======== ========
THE MANAGEMENT NETWORK GROUP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(In thousands)
ASSETS October 1, 2005 January 1, 2005
CURRENT ASSETS:
Cash and cash equivalents $ 11,974 $ 10,882
Short-term investments 40,300 41,300
Receivables, net 6,779 6,178
Refundable income taxes 162 769
Other assets 917 1,176
-------- --------
Total current assets 60,132 60,305
GOODWILL 13,365 13,365
INTANGIBLES, net 242 487
PROPERTY & EQUIPMENT, net 974 896
OTHER ASSETS 300 300
-------- --------
TOTAL ASSETS $ 75,013 $ 75,353
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable $ 457 $ 845
Accrued liabilities and other 4,490 4,339
-------- --------
Total current liabilities 4,947 5,184
NONCURRENT LIABILITIES 2,970 3,422
STOCKHOLDERS' EQUITY 67,096 66,747
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 75,013 $ 75,353
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