Exhibit 99.1
[GRAPHIC OMITTED]
CONTACT:
The Management Network Group, Inc. or Brainerd Communicators
Janet Hall Corey Kinger (Investors)
Janet.Hall@tmng.com kinger@braincomm.com
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800.876.5329 Olga Shmuklyer (Media)
shmuklyer@braincomm.com
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212.986.6667
TMNG REPORTS 2006 FIRST QUARTER RESULTS
Overland Park, KS - May 11, 2006 - TMNG Global (Nasdaq: TMNG), a leading
provider of management consulting services to the global communications, media
and entertainment industries, today reported financial results for its 2006
first quarter ended April 1, 2006.
Revenue in the first quarter of 2006 was $7.2 million, comparable with revenue
of $7.1 million in the first quarter of 2005, and up 15% from the fourth quarter
of 2005. During the quarter, gross margin was 50.5%, compared with 51.5% in the
first quarter of 2005. The adoption of SFAS 123R impacted first quarter 2006
gross margin by 2.6%. The adoption of SFAS 123R in the first quarter of 2006
requires the Company to recognize compensation expense for all stock-based
awards made to employees and non-employee directors. TMNG Global reported a net
loss of $1.6 million, or $0.04 on a diluted share basis for the first quarter of
2006, compared with a net loss of $608,000, or $0.02 per diluted share in last
year's first quarter. The increased net loss reflected the impact of adoption of
SFAS 123R and higher selling, general and administrative expenses as the company
selectively hires additional senior-level personnel to drive new client and
business initiatives.
The company ended the first quarter with a strong cash and short-term
investments position of $48.4 million, working capital of $51.7 million,
virtually no long-term debt, and stockholders' equity of $65.3 million.
"TMNG is transforming and broadening its market opportunities by leveraging its
wireless and Internet Protocol expertise beyond telecom and into all areas of
converging media and entertainment," said TMNG Chairman and CEO Rich Nespola.
"Thus far in 2006 we have made significant strides in building our client base
in media, entertainment and, notably, cable, where we have a reinvigorated
practice and a more expansive set of service offerings. We have begun working on
a major MVNE engagement, supporting a large prepaid wireless launch by a
national brand telecom service provider. Finally, we have significantly expanded
our international presence with the acquisition of ADVENTIS Ltd., which combined
with our Cambridge group gives us an established strategic consulting footprint
and client relationships in the European and Asian markets. We anticipate that
all of these initiatives and developments will begin to drive improving
financial results as we move through 2006."
Conference Call
TMNG will host a conference call at 5:00 p.m. ET today to discuss 2006 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, passcode
7298962. 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 7298962, through May 19, 2006.
About TMNG Global
The Management Network Group, Inc. (Nasdaq: TMNG) is a leading provider of
professional services to the converging communications industry and the
financial services firms that support it. With more than 400 consultants
worldwide, TMNG Global's clients include communications service providers,
entertainment, media and technology companies, and financial services firms.
Founded in 1990, TMNG Global has provided strategic and management consulting,
as well as managed services, to more than 1000 clients worldwide, including all
the Fortune 500 telecommunications companies. The company is headquartered in
Overland Park, Kansas, with offices in Berlin, Boston, Chicago, London, New
York, Denver, Dallas, Shanghai and Washington, D.C. TMNG Global 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 1, 2006 April 2, 2005
Revenues $ 7,163 $ 7,067
Cost of services (including equity related
charges of $193 and $35 for the thirteen
weeks ended April 1,2006 and April 2, 2005,
respectively) 3,544 3,429
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Gross profit 3,619 3,638
Operating expenses:
Selling, general and administrative
(including equity related charges of
$510 and $188 for the thirteen weeks
ended April 1, 2006 and April 2, 2005,
respectively) 5,482 4,213
Real estate restructuring - 75
Depreciation and amortization 214 282
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Total 5,696 4,570
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Loss from operations (2,077) (932)
Other income, net 535 339
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Loss from continuing operations before
income tax provision (1,542) (593)
Income tax provision (21) (15)
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Net loss $ (1,563) (608)
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Net loss per common share
Basic and diluted $ (0.04) $ (0.02)
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Shares used in calculation of net loss per common
share
Basic and diluted 35,625 34,977
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THE MANAGEMENT NETWORK GROUP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS)
ASSETS
April 1, 2006 December 31, 2005
CURRENT ASSETS:
Cash and cash equivalents $ 15,243 $ 10,951
Short-term investments 33,200 38,700
Receivables, net 6,843 6,149
Refundable income taxes 112 117
Other assets 1,177 1,262
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Total current assets 56,575 57,179
GOODWILL 13,365 13,365
INTANGIBLES, net 1,536 1,651
PROPERTY & EQUIPMENT, net 948 900
OTHER ASSETS 452 454
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TOTAL ASSETS $ 72,876 $ 73,549
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable $ 578 $ 1,025
Accrued liabilities and other 4,279 3,657
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Total current liabilities 4,857 4,682
NONCURRENT LIABILITIES 2,675 2,819
STOCKHOLDERS' EQUITY 65,344 66,048
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 72,876 $ 73,549
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