Exhibit 99.1
CONTACT:
The Management Network Group, Inc. Brainerd Communicators
Janet Hall Maggie Duquin / Ray Yeung (Media)
Janet.Hall@tmng.com duquin@braincomm.com / yeung@braincomm.com
800.876.5329 212.986.6667
Corey Kinger (Investors)
kinger@braincomm.com
212.986.6667
TMNG GLOBAL PROVIDES 2006 FOURTH QUARTER BUSINESS UPDATE
Overland Park, KS - February 15, 2007 - TMNG Global (Nasdaq: TMNG), a leading
provider of management consulting services to the global communications, media
and entertainment industries, today reported revenue growth of 38%, to $8.6
million, for its fourth quarter ended December 30, 2006. Revenue for the full
fiscal year was up 12%, to $34.0 million. The revenue results reported in this
press release are unaudited and have not been reviewed by the Company's
independent registered public accounting firm.
As previously announced, because of the ongoing Special Committee review of the
Company's historical stock option practices and related accounting, the Company
will not be in a position to announce full financial results for the fourth
quarter or full year 2006 until the Special Committee's review has been
completed and a determination of the appropriate stock-based compensation
expense has been made. The quarter included the following operational and
business highlights and developments:
o Revenue contribution of 44% from the CSMG Adventis strategy consulting
unit and 48% from the company's core management consulting offerings,
including the continued acceleration of TMNG's cable practice;
o Addition of 16 new customers, for a total of 61 new customers added in
2006;
o Execution of planned cost reductions, primarily related to TMNG's
European operations, resulting in an estimated annual SG&A savings in
excess of $5 million based
on our third quarter 2006 run rate, excluding all expenses in
connection with the Special Committee review;
o The acquisition on January 2, 2007 of Cartesian Ltd., a U.K.-based
technical consultancy and software engineering firm, for $7.3 million
plus potential future performance-based consideration;
o A year-end balance of approximately $38.3 million in cash and
short-term investments and no long-term debt compared to approximately
$42.1 million in cash and short-term investments at July 1, 2006. The
decline in cash and short-term investments during the second half of
2006 was primarily attributable to operating losses offset by
improvements in working capital;
o Operating losses for the quarter include costs associated with the
special committee review of $720,000.
"We believe TMNG's revenue growth of the last two years demonstrates a
successful diversification of our client portfolio and an enhancement of our
service offerings throughout the converging universe of communications, media
and entertainment," said Rich Nespola, TMNG Global Chairman and CEO. "Our
revenue growth has been achieved both organically, and more recently, through
acquisition with the addition of the international consulting operations of
Adventis Ltd. With Cartesian added to our team, TMNG is now positioned as a
global consultancy that can take telecom, media and entertainment clients from
strategy to solutions to implementation with particular emphasis on wireless
mobility, IP transformation and cable telephony.
"Looking ahead in 2007, we expect to see the top-line opportunities afforded by
our expanded geographic presence and product and service offerings, while
harvesting the benefits of operating expense reductions implemented in the
fourth quarter," continued Nespola. "Our goal is to build a solidly profitable
company with sustained revenue growth capability, a goal that we think is
becoming more achievable through our strengthened positioning in the converging
and fast-moving communications marketplace."
The Company will host a conference call at 5:00 p.m. ET today to discuss fourth
quarter revenue performance and other recent business developments. Investors
can access the conference call via a live webcast on the company's website,
www.tmng.com, or by dialing 888-694-4676,
passcode 8391758. 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 8391758, through February 22, 2007.
About TMNG Global
TMNG Global (NASDAQ: TMNG) is a leading provider of professional services to the
converging communications industry. Its companies, TMNG, CSMG Adventis, and
Cartesian, and its base of over 500 consultants, have provided strategy,
management, and technical consulting, as well as products and services, to more
than 1200 communications service providers, entertainment, media, and technology
companies and financial services firms worldwide. The company is headquartered
in Overland Park, Kansas, with offices in Berlin, Boston, Chicago, London, New
York, Shanghai and Washington, D. C.
Statements in this press release other than historical data and
information, including statements of belief, constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements may also be made during the conference call.
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
products offered by TMNG and Cartesian, the outcome, timing and impact of the
Special Committee's review of TMNG's historical practices regarding its stock
option programs and related accounting, which TMNG previously announced on
November 13, 2006, the conclusions resulting from that review, , any adverse tax
or accounting adjustments and any restatement of the Company's financial
statements resulting from that review, the matters described in the Company's
current reports on Form 8-K filed on November 13, 2006, November 20, 2006 and
January 19, 2007, the potential impact of these matters on the Company's
business, operations or expenses, 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. You should not place undue reliance
on any forward-looking statements, which speak only as of the date on which they
are made. We undertake no responsibility to update any of these forward-looking
statements to reflect events or circumstances occurring after the date of this
press release.
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