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TMNG Global Reports 2009 First Quarter Results
By TMNG Press Releases @ 3:13 PM :: 1099 Views
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Overland Park, KS – May 14, 2009 – TMNG Global (Nasdaq: TMNG), a leading provider of management consulting and software solution services to the global communications, media and entertainment industries, reported financial results for its 2009 first quarter ended April 4, 2009.
Revenues in the first quarter of 2009 were $14.2 million, compared to revenues of $21.5 million in the first quarter of 2008 and $14.4 million in the fourth quarter of 2008. Revenue comparisons continued to be affected by reduced customer spending in light of global macroeconomic trends, as well as unfavorable foreign exchange impact. During the quarter, TMNG’s gross margin was 38.6%, compared with 47.0% in the first quarter of 2008 and 39.8% in the fourth quarter of 2008. The decrease in gross margin in the first quarter of 2009 was primarily due to declines in strategy project revenues and the Company’s pricing on larger, long-term engagements.
TMNG Global reported a net loss of $(2.2) million, or $(0.06) per diluted share for the first quarter of 2009, compared to net income of $0.3 million, or $0.01 per diluted share in last year’s first quarter. After adjusting for the after tax impact of non-cash charges, including depreciation, amortization and share-based compensation, the non-GAAP adjusted net loss was $(1.3) million, or $(0.04) per diluted share, during the first quarter of 2009. The comparable non-GAAP adjusted net income for the first quarter of fiscal 2008 was $2.2 million, or $0.06 per diluted share.
“The first quarter results reflect the challenging environment that we expected, but also indicate that our strategies focused on cementing significant engagements with our top-revenue generating customers while closely managing costs are beginning to bear fruit,” said Richard Nespola, TMNG Global Chairman and CEO. “Our core management consulting business showed solid growth during the first quarter compared to the fourth quarter. While that growth was offset by a tough marketplace in strategy consulting, we believe we are in position to improve bottom-line results as the impact of our recent revenue ramp in management consulting and cost reductions begin to take hold in the second quarter. We are also encouraged by the traction we are beginning to see with our Ascertain software offering in the U.S., with our first domestic deployment imminent and a major pilot poised for expansion. The path through 2009 will continue to be a bumpy one, but we are cautiously optimistic given how the business has responded to our revenue growth and cost reduction initiatives. We will continue to manage to a goal of achieving positive cash flows from operations in 2009 and a resumption of top-line growth as the year progresses.”
In addition to reporting net (loss) income and net (loss) income per share on a GAAP basis, this press release contains certain non-GAAP adjustments which are described in the schedule entitled “Reconciliation of GAAP Net (Loss) Income to Non-GAAP Adjusted Net (Loss) Income” that accompanies this press release. In making these non-GAAP adjustments, the Company took 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. 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 Company performance utilizing GAAP financial information. The Company believes that providing such adjusted results allows investors and other users of the Company’s financial statements to better understand TMNG Global’s comparative operating performance for the periods presented.
TMNG Global’s management uses the non-GAAP financial measure in its own evaluation of the Company’s performance, particularly when comparing performance to the prior year’s period and on a sequential basis. TMNG Global’s non-GAAP measure may differ from similar measures by other companies, even if similar terms are used to identify such measures. Although TMNG Global’s management believes the non-GAAP financial measure is useful in evaluating the performance of its business, TMNG Global acknowledges that items excluded from such measure have a material impact on the Company’s net (loss) income and net (loss) income 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 TMNG Global’s results.
Conference Call
The Company will host a conference call at 5:00 p.m. ET today to discuss 2009 first quarter results. Investors can access the conference call via a live webcast on the Company’s website, www.tmng.com, or by dialing 800-860-2442 in the United States or 412-858-4600 from international locations and referencing the TMNG Global call. 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 877-344-7529, pass code 418740, through May 21, 2009.
About TMNG Global
TMNG Global (NASDAQ: TMNG) is a leading provider of professional services to the converging communications industry. Its companies, TMNG, CSMG, 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 Boston, Chicago, London, New Jersey, New York, Shanghai and Washington, D. C.
Cautionary Statement Regarding Forward Looking Information
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, any statements that do not relate to historical or current facts constitute forward-looking statements, including any statements contained herein regarding expectations with respect to the Company’s future business, financial condition and results of operations. Forward-looking statements 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, the ability of the Company to successfully integrate recent acquisitions, conditions in the telecommunications industry, overall economic and business conditions (including the recent worsening of conditions in the credit markets and in general economic conditions), the demand for the Company’s services (including the recent slowing of client decisions on proposals and project opportunities along with scope reduction of existing projects), the level of cash and non-cash expenditures incurred by the Company, technological advances and competitive factors in the markets in which the Company competes, and the factors described in this press release and in TMNG Global’s filings with the Securities and Exchange Commission, including the risks described in TMNG Global’s periodic reports filed with the SEC, including, but not limited to, “Cautionary Statement Regarding Forward Looking Information” under Part I of its Annual Report on Form 10-K for the fiscal year ended January 3, 2009 and subsequent periodic reports containing updated disclosures of such risks. These filings are available at the SEC’s web site at www.sec.gov. TMNG Global does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances.
(Please see attached financial tables)
| THE MANAGEMENT NETWORK GROUP, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (In thousands, except per share data) |
| (unaudited) |
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Thirteen Weeks Ended |
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Thirteen Weeks Ended |
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April 4, |
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March 29, |
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2009 |
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2008 |
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| Revenues |
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$ 14,197 |
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$ 21,541 |
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| Cost of services (includes net non-cash share-based compensation expense of $88 and $193 for the thirteen weeks ended April 4, 2009 and March 29, 2008, respectively) |
|
8,718 |
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11,414 |
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| Gross Profit |
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5,479 |
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10,127 |
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| Operating Expenses: |
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| Selling, general and administrative (includes net non-cash share-based compensation expense of $220 and $436 for the thirteen weeks ended April 4, 2009 and March 29, 2008, respectively) |
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7,408 |
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8,842 |
| Intangible asset amortization |
|
474 |
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1,248 |
| Total operating expenses |
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7,882 |
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10,090 |
| (Loss) income from operations |
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(2,403) |
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37 |
| Other income: |
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| Interest income |
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82 |
|
306 |
| Other, net |
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15 |
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| Total other income |
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97 |
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306 |
| (Loss) income before income tax provision |
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(2,306) |
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343 |
| Income tax benefit (provision) |
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122 |
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(82) |
| Net (loss) income |
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$ (2,184) |
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$ 261 |
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| Net (loss) income per common share: |
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| Basic and diluted |
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$ (0.06) |
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$ 0.01 |
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| Weighted average shares used in calculation of net (loss) income per common share: |
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| Basic |
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34,752 |
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36,343 |
| Diluted |
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34,752 |
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36,490 |
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| THE MANAGEMENT NETWORK GROUP, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (In thousands) |
| (unaudited) |
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April 4, |
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January 3, |
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2009 |
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2009 |
| ASSETS |
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| CURRENT ASSETS: |
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| Cash and cash equivalents |
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$ 5,854 |
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$ 5,956 |
| Receivables: |
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| Accounts receivable |
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10,952 |
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8,247 |
| Accounts receivable — unbilled |
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4,733 |
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4,540 |
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15,685 |
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12,787 |
| Less: Allowance for doubtful accounts |
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(380) |
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(379) |
| Net receivables |
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15,305 |
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12,408 |
| Prepaid and other current assets |
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1,984 |
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1,653 |
| Total current assets |
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23,143 |
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20,017 |
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| NONCURRENT ASSETS: |
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| Property and equipment, net |
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1,717 |
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1,801 |
| Goodwill |
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6,331 |
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6,240 |
| Licenses and identifiable intangible assets, net |
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4,282 |
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4,842 |
| Noncurrent investments |
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13,824 |
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13,404 |
| Other noncurrent assets |
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447 |
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410 |
| Total Assets |
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$ 49,744 |
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$ 46,714 |
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| CURRENT LIABILITIES: |
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| Trade accounts payable |
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$ 1,424 |
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$ 1,138 |
| Accrued payroll, bonuses and related expenses |
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3,871 |
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4,053 |
| Other accrued liabilities |
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2,798 |
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3,010 |
| Deferred revenue |
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1,577 |
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476 |
| Accrued contingent consideration |
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161 |
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161 |
| Unfavorable and other contractual obligations |
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698 |
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697 |
| Total current liabilities |
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10,529 |
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9,535 |
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| NONCURRENT LIABILITIES: |
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| Unfavorable and other contractual obligations |
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934 |
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1,062 |
| Noncurrent borrowings |
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4,844 |
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1,485 |
| Other noncurrent liabilities |
|
907 |
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1,006 |
| Total noncurrent liabilities |
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6,685 |
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3,553 |
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| Total stockholders’ equity |
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32,530 |
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33,626 |
| Total Liabilities and Stockholders’ Equity |
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$ 49,744 |
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$ 46,714 |
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| THE MANAGEMENT NETWORK GROUP, INC. |
| RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED NET (LOSS) INCOME |
| (unaudited) |
| (in thousands, except per share data) |
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Thirteen Weeks Ended |
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Thirteen Weeks Ended |
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April 4, |
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March 29, |
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2009 |
|
2008 |
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| Reconciliation of GAAP net (loss) income to non-GAAP adjusted net (loss) income: |
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| GAAP net (loss) income |
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$ (2,184) |
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$ 261 |
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| Realized gain on auction rate securities |
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(23) |
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| Depreciation and amortization |
|
796 |
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1,592 |
| Non-cash share based compensation expense |
|
308 |
|
629 |
| Tax effect of applicable non-GAAP adjustments |
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(158) |
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(259) |
| Adjustments to GAAP net (loss) income |
|
923 |
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1,962 |
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| Non-GAAP adjusted net (loss) income |
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$ (1,261) |
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$ 2,223 |
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| Reconciliation of GAAP net (loss) income per diluted common share to non-GAAP adjusted net (loss) income per diluted common share: |
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| GAAP net (loss) income per diluted common share |
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$ (0.06) |
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$ 0.01 |
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| Realized gain on auction rate securities |
|
0.00 |
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| Depreciation and amortization |
|
0.02 |
|
0.04 |
| Non-cash share based compensation expense |
|
0.01 |
|
0.02 |
| Tax effect of applicable non-GAAP adjustments |
|
(0.01) |
|
(0.01) |
| Adjustments to GAAP net (loss) income per diluted common share |
|
0.02 |
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0.05 |
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| Non-GAAP adjusted net (loss) income per diluted common share |
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$ (0.04) |
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$ 0.06 |
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| Weighted average shares used in calculation of diluted net (loss) income per common share |
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34,752 |
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36,490 |
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# # #
CONTACT:
Brainerd Communicators
Ray Yeung / Jo Anne Barrameda (Media)
Corey Kinger (Investors)
212.986.6667
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TMNG Global Announces Scheduling of First Quarter 2009 Earnings Release and Conference Call
By TMNG Press Releases @ 1:31 PM :: 695 Views
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Overland Park, KS – May 4, 2009 – TMNG Global (Nasdaq: TMNG), a leading provider of management consulting services to the global communications, media and entertainment industries, today announced it will host a conference call to discuss first quarter 2009 financial results on Thursday, May 14, 2009 at 5:00 p.m. ET.
A news release outlining the first quarter 2009 results will be distributed at approximately 4:00 p.m. ET on May 14, 2009 and will also be available on the “Investor Relations” portion of TMNG’s Web site, www.tmng.com.
To participate on the live call, investors should dial 800-860-2442 in the United States or 412-858-4600 from international locations and reference the TMNG Global call approximately ten minutes prior to the start time. In addition, the call will be available via live webcast over the Internet on the “Investor Relations” portion of TMNG’s corporate Web site, www.tmng.com. Investors should go to the Web site approximately 10 minutes prior to the start time of the call to register.
An on-line archive of the call will be available at www.tmng.com for one week. Additionally, a replay of the call will be available by dialing 877-344-7529, pass code 418740, through May 21, 2009.
About TMNG Global
TMNG Global (NASDAQ: TMNG) is a leading provider of professional services to the converging communications industry. Its companies, TMNG, CSMG, and Cartesian, and its base of over 600 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 Boston, Chicago, London, New Jersey, New York, Shanghai and Washington, D.C.
# # #
CONTACT:
Brainerd Communicators
Ray Yeung / Jo Anne Barrameda (Media)
yeung@braincomm.com / barrameda@braincomm.com
Corey Kinger (Investors) kinger@braincomm.com
212.986.6667
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Cartesian Wins Prestigious Queen’s Award for Enterprise Innovation
By TMNG Press Releases @ 3:00 AM :: 792 Views
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Cartesian Wins Prestigious Queen’s Award for Enterprise Innovation
LONDON, 21 April 2009 - Cartesian Limited, a TMNG Global company and leading specialist technology consulting firm for the telecoms industry, today announced that it has received a celebrated Queen’s Award for Enterprise. Cartesian, which provides software and services to blue-chip telecommunications providers, won the award in the Innovation category for its software suite, Ascertain™.
In the UK alone, there are over 100 million fixed and mobile phone lines generating over 700 million call minutes and 150 million text messages daily. Ensuring that the charges for these are correctly calculated and that all are put onto customer bills is highly complex. Cartesian developed the Ascertain software to enable telecoms service providers to improve customer billing accuracy. Ascertain provides sophisticated controls to ensure that customers are not overcharged, and that service providers do not lose revenue through under billing. Through Ascertain, telecoms operators are saving millions of pounds in revenues that previously were not recouped.
Commenting on the receipt of the award, Alan Strong, co-founder of Cartesian said:
“We are honoured to receive the Queen’s Award, the most prestigious business accolade in the UK. The Cartesian team has been helping telecoms operators with their complex problems for many years now and we are thrilled that our pioneering work has been recognised in this way.”
Development of the Ascertain software suite began nearly ten years ago and initially focused on provision of sophisticated, comprehensive control to assure the accuracy of the billing process. Improvements and enhancements have been made continuously since then and Ascertain now provides a software framework within which Cartesian have developed a range of solutions from revenue management through to provisioning.
Janos Sivo, co-founder of Cartesian commented:
“As the telecoms business is rapidly evolving and customer billing and service becomes more complex, we are continuing to invest and innovate to ensure that we provide the ongoing support that our customers need – allowing them to improve the service they offer to their customers as well as protect their bottom line.”
Founded in 1996 by four telecoms professionals, Cartesian has since grown to a team of about one hundred people. The company is achieving considerable commercial success for its consulting services as well as its Ascertain software capability, with a proven track record on creating and retaining satisfied customers.
Contact details
For further information, please contact:
Cartesian Limited
Bill Hill, Director
07770 637825 (mobile)
020 7643 5555 (switchboard)
bill.hill@cartesian.co.uk
Brainerd Communicators
Ray Yeung / Jo Anne Barrameda (Media)
yeung@braincomm.com
barrameda@braincomm.com
Notes for Editors
About Cartesian Limited, a TMNG Global Company
Cartesian, a TMNG Global company (NASDAQ: TMNG), is a technical consulting and software development company, delivering products and services to the telecoms industry. Cartesian’s expertise covers networks, engineering, and technology, through to revenue assurance and billing. Ascertain is Cartesian’s widely-deployed suite of software tools which address the revenue assurance, data integrity and provisioning needs of telecoms operators. More information on Cartesian can be found at http://www.cartesian.co.uk.
Cartesian was founded in 1996. It is based in Holborn, London and employs approximately 100 people. Turnover last year was approximately £12 million. Its customers are the major telecoms and broadband operators in the UK and rest of Europe.
The Queen’s Awards are the leading business awards in the UK. Awards are given in the Innovation category for those firms who have demonstrated clear innovation which has led to significant commercial success.
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TMNG Global Appoints A. Reza Jafari to Board of Directors
By TMNG Press Releases @ 9:00 AM :: 841 Views
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TMNG Global Appoints A. Reza Jafari to Board of Directors
Overland Park, KS – April 20, 2009 – TMNG Global
(NASDAQ: TMNG), a leading provider of management consulting services to the
communications, media and entertainment industries, today announced the
appointment of A. Reza Jafari, Chairman and CEO of e-Development
International, to the Company’s Board of Directors. Mr. Jafari will serve
on the Board’s Compensation Committee and Nominating & Corporate Governance
Committee. This appointment brings the number of independent directors on
TMNG Global’s Board to five members on its seven-member Board.
“We are delighted to welcome Reza to the Board,” said
Richard P. Nespola, Chairman & CEO of TMNG Global. “Reza’s proven track
record and experience, especially in international markets, complements and reinforces
TMNG’s unique positioning as the industry leader in the consulting arena with a
focus on the converging communications industry.”
With more than 30 years experience in IT services,
competitive telecoms, media and entertainment and education industries, Mr.
Jafari brings a wealth of industry expertise to the TMNG Board. In his
current leadership position at e-Development International, Mr. Jafari manages
a portfolio of business relationships and interests which include advising
established and start-up companies and organizations across IT services and
mobile communications businesses.
Prior to his current role, Mr. Jafari served as the Chairman
and Managing Director of NeuStar International; and the Chairman and CEO of The
Omega Partners. He has also held various senior executive positions at
Electronic Data Systems Corporation (EDS an HP Company) including the President
of Global Industry Group for Communications, Media and Entertainment
industries.
He also currently serves as the Vice Chairman of the Board of Gigafone, a
mobile advertising firm based in the Netherlands. On the industry association
front, Mr. Jafari is the Chairman of the Board of ITU TELECOM; a board member
of the India, China and America (ICA) Institute and a member of the Dean's
Council, Kelley School of business, Indiana University.
About TMNG Global
TMNG Global (NASDAQ: TMNG) is a
leading provider of professional services to the converging communications
industry. Its companies, TMNG, CSMG, and Cartesian and its base of over 600
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 Boston, London, New Jersey, Shanghai and Washington,
D.C.
CONTACT:
The Management Network Group, Inc.
Debby Brannon
debby.brannon@tmng.com
800.876.5329
Brainerd Communicators
Ray Yeung / Jo Anne Barrameda (Media)
yeung@braincomm.com
barrameda@braincomm.com
Corey Kinger (Investors)
kinger@braincomm.com
212.986.6667
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Cartesian And Unitymedia Sign Contract for the Implementation of DigitalRoute’s MediationZone® Solution Coupled with Cartesian’s Ascertain® Revenue Assurance Solution
By TMNG Press Releases @ 7:00 AM :: 947 Views
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Cartesian And Unitymedia Sign Contract for the Implementation of DigitalRoute’s MediationZone® Solution Coupled with Cartesian’s Ascertain® Revenue Assurance Solution
Overland Park, KS – April 6, 2009– Cartesian, a TMNG Global company providing technical consulting, software development and revenue assurance professional services, together with DigitalRoute, the leading provider of embedded and standalone mediation and data integration software, today announced that they have signed a contract with Unitymedia, Europe’s third largest cable-based media and communications services provider based in Cologne, Germany, for the implementation of a turnkey mediation system (DigitalRoute’s MediationZone) coupled with relevant revenue assurance tools (Cartesian’s Ascertain®).
Unitymedia selected DigitalRoute’s MediationZone for its flexible architecture, ease of deployment and ease-of-use. MediationZone is replacing a legacy mediation system and will form a horizontal data integration layer across all of Unitymedia’s network technologies and services. The systematic monitoring of usage information through the Ascertain revenue assurance tools will provide the required certainty of data, system and process integrity.
“We are impressed with DigitalRoute’s MediationZone providing advanced off-the-shelf mediation functionality and Cartesian’s Ascertain revenue assurance tool providing a continuous audit trail,” said Kamran Ziaee, Vice President Information Systems at Unitymedia. “The combination of MediationZone, Ascertain and Cartesian’s proven domain competence were significant factors in our decision making process,” he adds.
“The respective positioning of DigitalRoute and Cartesian is 100% complementary bringing together a world-class data integration platform with revenue assurance capabilities, strong system integration knowledge and domain expertise,” said Dr. Janos Sivo, Managing Director at Cartesian.
“The fact that the fast growing cable-based media and communications services provider Unitymedia chooses DigitalRoute’s MediationZone as the single mediation platform in open competition provides a proof point for our technological superiority and attractiveness of our value proposal. We are looking forward to the long term contribution we can make to help Unitymedia achieving their business targets,” said Jan Karlsson, Chief Executive Officer at DigitalRoute.
About Cartesian, a TMNG Global Company
Cartesian, a TMNG Global company, is a technical consulting and software development company, delivering products and services to the telecoms industry. Cartesian's expertise covers networks, engineering, and technology, through to revenue assurance and billing. Ascertain is Cartesian’s widely-deployed suite of software tools which address the revenue assurance, data integrity and provisioning needs of telecoms operators. More information on Cartesian can be found at http://www.cartesian.co.uk.
About DigitalRoute AB
DigitalRoute was founded in 2000 to provide best-of-breed mediation to telecom network and service providers worldwide. DigitalRoute’s MediationZone supports any combination of offline and online/active/bi-directional mediation of voice, data and content services, with carrier-grade functionality and unparalleled flexibility. There are more than 110 MediationZone deployments across Europe, Africa, the Middle East, North America, South America, Asia and Oceania. More information on DigitalRoute can be found at http://www.digitalroute.com.
About Unitymedia
Unitymedia is Europe’s third largest cable-based media and communications services provider and the first truly integrated cable network in Germany. Headquartered in Cologne, it operates in Hesse and North Rhine-Westphalia, the most densely populated regions of Germany which produce about one third of Germany’s GDP. In addition to analogue cable services, Unitymedia is a leading provider of integrated triple play services, driving subscriber growth across digital television, broadband Internet and Telephony. As of 31 December 2008, Unitymedia had approximately 4.6 million basic cable subscribers, 568k Digital TV Pay revenue generating units (RGUs), 630k Internet RGUs and 363k Telephony RGUs. More information on Unitymedia can be found at http://www.unitymedia.de.
CONTACT:
The Management Network Group, Inc.
Debby Brannon
debby.brannon@tmng.com
800.876.5329
Brainerd Communicators
Ray Yeung / Jo Anne Barrameda (Media)
yeung@braincomm.com
barrameda@braincomm.com
Corey Kinger (Investors)
kinger@braincomm.com
212.986.6667
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TMNG Global and Adaption Technologies to Demonstrate Two New Cable Software Offerings at 2009 Cable Show
By TMNG Press Releases @ 7:00 AM :: 864 Views
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TMNG Global and Adaption Technologies to Demonstrate Two New Cable Software Offerings at 2009 Cable Show
Ascertain® and Rialto® Solutions Vital for Capturing Cable Revenues in Challenging Economic Times
Overland Park, KS – Tuesday March 31, 2009– TMNG Global (NASDAQ: TMNG), a leading provider of management consulting services to the communications, media and entertainment industries, and Adaption Technologies, a leading innovator of tools that simplify the delivery of IP based services, announce the unveiling of two new software solutions at The Cable Show 2009, booth #2405, Hall B, held at the Washington DC Convention Center on April 1-3. TMNG Global will debut its flagship Ascertain® Software Solutions, a unified revenue assurance and cost management platform. Adaption Technologies will showcase its Rialto® offering, a BSS/OSS software platform for the commercial business SIP-based VoIP market. Both solutions are available for commercial use for the cable and broadband industry.
“In these challenging economic times, cable operators need to be laser focused on capturing new revenues and improving operational efficiencies,” said Bill Opet, Senior Vice President at TMNG Global. “In addition to announcing the commercial availability of Ascertain®, we’ve teamed with Adaption Technologies to showcase their Rialto® VOIP solution. The combination of proven revenue assurance capabilities of Ascertain® with a program to expand the market penetration of cable VoIP services with Rialto® is a first for the industry.
Featured demonstrations at the TMNG Global booth will include software solutions to help cable operators capture new revenues, expand market share, improve operational efficiencies, reduce revenue leakage, and drive new cash flow:
- TMNG Global will demonstrate its Ascertain® Software Solutions – a unified platform for implementing revenue assurance, data integrity, partner settlement management, and cost management solutions for cable triple-play carriers. These Ascertain® revenue assurance and cost management tools address the cash flow optimization needs of cable companies, providing rating accuracy, customer data reconciliation, analysis and reconciliation of event records, processing authentication and monitoring of trends and volumes.
- Adaption Technologies will debut its Rialto® solution – a complete BSS / OSS software platform that can be easily customized and integrated with a cable operator’s existing infrastructure. The operating platform simplifies the sales, deployment, activation and self-care complexities associated with enterprise VoIP. This software solution will enable a service provider to drive new revenues through the sale of SIP-based VoIP services to medium-size commercial customers.
“For cable operators to successfully offer SIP-based VoIP services to the broadest available commercial business market, automation is necessary to rapidly increase revenues and to reduce the costs of service delivery,” said Keith Roberts, President of Adaption Technologies. “We look forward to strengthening our partnership with TMNG Global at The Cable Show and showcasing our Rialto® software offering that will enable cable operators to easily and quickly deploy an automated and robust SIP-based VoIP offering for the commercial business market.”
Visit the TMNG Global booth #2405 for a demonstration. More information on these cable solutions can found at www.tmng.com/ascertain and www.adpt-tech.com.
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About TMNG Global
TMNG Global (NASDAQ: TMNG) is a leading provider of professional services to the converging communications industry. Its companies, TMNG, CSMG, Cartesian and TWG Consulting, and its base of over 600 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 Boston, Chicago, London, New Jersey, New York, Shanghai and Washington, D.C.
About Adaption Technologies
Adaption Technologies is a leading innovator of tools that simplify the delivery of IP based services and enable service providers increased speed to market, flexibility, scalability and value, along with a powerful suite of service administration and e-commerce tools for self service by end users. With more than 150 years of combined experience in changing the ways businesses employ technology, Adaption Technologies brings a highly refined perspective to the current state of IP services and the untapped potential that remains. The company is headquartered in The Woodlands, TX, with offices in Tulsa and Denver, and data centers in Dallas and Chicago.
CONTACT:
The Management Network Group, Inc.
Debby Brannon
debby.brannon@tmng.com
800.876.5329
Adaption Technologies
Eric Strickland
estrickland@adpt-tech.com
918.877.1130
Brainerd Communicators, Inc.
Ray Yeung / Jo Anne Barrameda (Media)
yeung@braincomm.com / barrameda@braincomm.com
Corey Kinger (Investors)
kinger@braincomm.com
212.986.6667
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TMNG Global Expands Offering to Help Companies Drive Cash Flow Improvements
By TMNG Press Releases @ 9:00 AM :: 799 Views
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Proprietary Suite of Assessment Tools Offer Comprehensive Review of Existing Systems and Processes to Accelerate Cash Flow Improvements
Overland Park, KS – Wednesday March 26, 2009– TMNG Global (NASDAQ: TMNG), a leading provider of management consulting services to the communications, media and entertainment industries, today announced an expansion of its proprietary methodologies and toolsets to help companies increase revenues and drive cash flow improvements. Specifically, the expanded offering comprises TMNG eLexiconTM, TMNG QBCTM (Quality Business Controls), TMNG QSATM (Quality Systems Audit) and Ascertain™.
“In this challenging economic environment, driving cash flow improvements is the top-of-mind issue,” said Rich Nespola, CEO of TMNG Global. “Aside from cost-cutting, forward-thinking companies need a new approach and new tools to improve cash flow, drive revenues and conserve cash. By taking a proactive approach in reviewing existing business and operating models, service providers can potentially recover millions of dollars annually by properly addressing gaps in their CAPEX and OPEX processes.”
To help companies drive cash flow improvements, TMNG Global has created a tailored offering based on its proven proprietary methodologies and toolsets that begins with issue identification through solution implementation. This proprietary methodology is a proven process that guarantees success and allows TMNG to assess systems and processes in an efficient, timely manner; while minimizing the impact on a company.
- TMNG eLexiconTM is a web-based, comprehensive business requirements framework of over 5,000 requirements across 46 categories which enables a thorough assessment of system requirements and operational efficiencies.
- TMNG QBCTM comprises a multi-dimensional revenue integrity discipline that identifies service activation and revenue process problems, their root causes and enables the design and implementation of solutions.
- TMNG QSATM provides a comprehensive and rigorous evaluation of an organization’s information technology systems, as scored against industry best-practice benchmarks.
- Ascertain™ is a flexible, configurable revenue management and data integrity toolset that provides timely evaluation of processes, metrics and control points; which when used following cash flow changes, monitors and maintains the gains.
“The current economic environment is forcing all service providers to evaluate and scrutinize all of their business processes and systems to improve bottom line performance,” said Robert Pons, SVP - Capital Markets, TMNG Global. “These toolsets, combined with the in-depth operational expertise and successful track record of TMNG Global, has proven to be the winning formula to enable our clients to generate significant cash flow improvements.”
TMNG Global’s proven methodology focuses on taking a proactive approach to the following five imperatives for improving cash flow:
- Assess existing order-to-cash process
- Ensure accuracy in monitoring the network-to-bill process
- Systems must properly support business and operational processes
- Proactive management of controls, measurement and reports
- Manage partner settlements across entire value chain
TMNG Global possesses the depth of strategic and operational expertise with communications, media and technology companies to address the most complex strategic challenges and operational efficiencies; ensuring an accelerated and optimized approach to improved cash flow.
More information on TMNG Global’s approach to cash flow improvement can be found at www.tmng.com
About TMNG Global
TMNG Global (NASDAQ: TMNG) is a leading provider of professional services to the converging communications industry. Its companies, TMNG, CSMG, Cartesian and TWG Consulting, and its base of over 600 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 Boston, Chicago, London, New Jersey, New York, Shanghai and Washington, D.C.
CONTACT:
The Management Network Group, Inc.
Debby Brannon
debby.brannon@tmng.com
800.876.5329
Brainerd Communicators
Ray Yeung / Jo Anne Barrameda (Media) yeung@braincomm.com / barrameda@braincomm.com
Corey Kinger (Investors)
kinger@braincomm.com
212.986.6667
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TMNG Global Launches Initiative to Support Application Process for Companies Seeking Grants from Federal Broadband Stimulus Programs
By TMNG Press Releases @ 7:00 AM :: 680 Views
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Overland Park, KS – March 18, 2009 – CSMG, the strategy division of TMNG Global (NASDAQ: TMNG), a leading provider of management consulting services to the communications, media and entertainment industries, today announced a targeted initiative to support clients seeking funding from recently announced Federal broadband stimulus programs.
This offering builds upon TMNG Global’s deep expertise in helping companies assess rural broadband business cases through its proprietary financial models and research sources, and its success in supporting past policy arguments and grant applications for clients with the Federal Communications Commission (FCC) and the Rural Utilities Service (RUS).
The American Recovery and Reinvestment Act provides $7.2B in grants and loans for domestic broadband projects that extend or enhance broadband service availability. Telecommunication service providers, utilities, infrastructure owners, local governments, non-profits, and community organizations are all eligible to receive funding. CSMG is prepared to serve companies seeking to apply for these funds through strategic, public good and economic analysis, business case development, operational planning, and grant application development.
“This is an unprecedented opportunity to obtain grant money to address an important social and economic issue for a large variety of players,” said Richard Nespola, CEO of TMNG Global. “Companies seeking grant monies will need to understand that this is a political process and their application will need to prove that they are not only a viable business but are committed to the long-term investment, economic development and social requirements of the bill.”
The guidelines set forth in the stimulus legislation offers funding to a broad range of potential projects. Support may be extended to wireless and wireline technologies, access and core network investment, and multiple target user groups spanning residential, business, education, and public safety customers. Suitability for funding will differ based on specific geographic, market, competitive, and economic conditions. Detailed analysis and expert support through the grant application development process will therefore be critical to success.
CSMG will support clients to develop detailed grant applications addressing each of these key questions.
Opportunity Assessment: Which geographies and communities are most underserved? What is the level of competition and market need? Which technologies should be employed? What are the optimal economic and operational models?
Business Case Development: What are the capital requirements? How much funding is required from the government? How much is private? What are the operating expenses and forecasted returns? Is the project one that is viable and sustainable after government support? Is it clear that the project needs public support to be commercially viable?
Public Good Summary: What benefits for the community will be achieved? How many jobs will be created? What are the economic multipliers of this activity?
CSMG is able to support application development on a turnkey basis in conjunction with its legal and network design partners or flexibly execute specific elements of each application as required by clients.
For more information, visit www.csmg-global.com.
About TMNG Global
TMNG Global (NASDAQ: TMNG) is a leading provider of professional services to the converging communications industry. Its companies, TMNG, CSMG, and Cartesian, and its base of over 600 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 Boston, Chicago, London, New Jersey, New York, Shanghai and Washington, D.C.
CONTACT:
The Management Network Group, Inc.
Debby Brannon
debby.brannon@tmng.com
800.876.5329
Brainerd Communicators
Ray Yeung / Jo Anne Barrameda (Media) yeung@braincomm.com / barrameda@braincomm.com
Corey Kinger (Investors)
kinger@braincomm.com
212.986.6667
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Videogames to Deliver the Next Growth Engine for Fixed and Mobile Service Providers, Finds CSMG Report
By TMNG Press Releases @ 7:01 AM :: 658 Views
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High Speed Broadband Networks Essential for Digital Delivery of Online Videogames
Mobile Application Community Necessary to Stimulate Development of Innovative Games, Create a Mobile Marketplace and Generate Higher Mobile Data Usage
Overland Park, KS – March 12, 2009 – CSMG, the strategy division of TMNG Global (NASDAQ: TMNG), a leading provider of management consulting services to the communications, media and entertainment industries, today released its report on the global video games market and its impact on mobile and fixed service providers, entitled: Playing Games: A Revolution In Interactive Entertainment. Fueled by increased network access, faster broadband speeds, next-generation consoles and more capable mobile devices, the dramatic growth in the video games market presents tremendous opportunities for service providers to capture greater share of this market, according to CSMG.
“Despite the current economic downturn, gaming has proven to be resilient in these trying times and is the leading entertainment segment that is fueling growth,” said Rich Nespola, Chairman and CEO of TMNG Global. “The expansion of casual games, simpler user interfaces and the proliferation of innovative business models is broadening the gamer demographic. The timing is ripe for service providers to hedge the business cycle by capturing the robust opportunities to grow the mobile gaming market.”
The report finds that the global gaming industry is expected reach $40 billion in annual revenues by 2012. By comparison, U.S. gaming software sales reached $20 billion in 2008 from $9.4 billion in 2005. Mobile games represents the fastest growing segment with a 24.6% (CAGR) compound annual growth rate forecasted for 2007 through 2012. The average age of a gamer has increased to 33 years and female gamers now reach almost 50 percent across many types of games.
According to CSMG, service providers are well positioned to become a compelling digital distribution channel for video games given their existing assets. Carriers already have a scalable network infrastructure, established subscriber base, sophisticated billing systems and bundled product portfolios. Furthermore, service providers can leverage its network to offer value added services such as VoIP and IP chat to enhance the consumer experience and drive adoption.
“Service providers cannot afford to be late to the game in capturing the value created by the video games market and will need to create new business models to adequately capture the mobile gaming growth opportunities,” said Armaghan Farooq, Manager, CSMG.
The report finds that the standardization of mobile software platforms presents the biggest opportunity for service providers in capturing a greater share of mobile gaming. Operators have the opportunity to create a standards based mobile gaming marketplace. This approach will encourage and incent the mobile gaming developer base, with the potential to accelerate market growth by increasing gamer penetration, gaming ARPU (average revenue per user), on-deck/off-deck purchases and operator and developer revenue share.
The report is based on executive interviews with major service providers, gaming industry players and additional value chain participants as well as qualitative and quantitative strategic analysis of emerging trends and its impact on the gaming market. The study aims to identify specific opportunities for service providers, both mobile and fixed, to benefit from the growth in gaming by evaluating market trends and identifying specific opportunities that generate tangible results in the short to medium term.
To view the full report, visit www.csmg-global.com.
About TMNG Global
TMNG Global (NASDAQ: TMNG) is a leading provider of professional services to the converging communications industry. Its companies, TMNG, CSMG, and Cartesian, and its base of over 600 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 Boston, Chicago, London, New Jersey, New York, Shanghai and Washington, D.C.
CONTACT:
The Management Network Group, Inc.
Debby Brannon
debby.brannon@tmng.com
800.876.5329
Brainerd Communicators
Ray Yeung / Jo Anne Barrameda (Media)
yeung@braincomm.com / barrameda@braincomm.com
Corey Kinger (Investors)
kinger@braincomm.com
212.986.6667
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TMNG Global Reports 2008 Fourth Quarter and Full Year Results
By TMNG Press Releases @ 4:11 PM :: 645 Views
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Overland Park, KS – February 26, 2009 – TMNG Global (Nasdaq: TMNG), a leading provider of management consulting and software solution services to the global communications, media and entertainment industries, reported financial results for its 2008 fourth quarter (a fourteen week quarter) and full year ended January 3, 2009.
Revenues in the fourth quarter of 2008 were $14.4 million compared to revenues of $20.8 million in the fourth quarter of 2007 and $17.5 million in the third quarter of 2008. Revenue comparisons were affected by reduced customer spending in light of global macroeconomic trends, as well as unfavorable foreign exchange impact. During the quarter, TMNG Global’s gross margin was 39.8%, compared with 47.4% in the fourth quarter of 2007. The decrease in gross margin was primarily due to lower utilization of consulting personnel on billable projects in the fourth quarter of 2008, especially during the December holiday season, as well as the mix of consulting engagements.
TMNG Global reported a net loss of ($5.0) million or ($0.14) per diluted share for the fourth quarter of 2008, compared to net income of $480,000, or $0.01 per diluted share in last year’s fourth quarter. The fourth quarter net loss included a goodwill impairment charge of $4.3 million and a charge related to the valuation of the Company’s auction rate securities of $280,000. All previously disclosed auction rate security valuation adjustments were recorded within other comprehensive income. Excluding these items and adjusting for the after tax impact of non-cash charges, including depreciation, amortization and share-based compensation of $1.1 million, TMNG Global generated non-GAAP adjusted net income of $679,000, or $0.02 per diluted share, during the fourth quarter of 2008. The comparable non-GAAP adjusted net income for the fourth quarter of fiscal 2007, which also included an adjustment for expenses related to the review of the Company’s option granting practices, was $2.7 million, or $0.07 per diluted share.
“While challenging, 2008 was a productive year for TMNG, demonstrated by our year-over-year revenue growth, significant customer wins, and the successful and seamless integration of our recent acquisitions. We also maintained profitability on a cash earnings basis despite the pronounced macroeconomic difficulties that emerged in the second half of the year,” said Richard Nespola, TMNG Global Chairman and CEO. “As the economic crisis unfolded, we took quick and decisive action by managing our business to lower levels of customer spending while focusing on the Company’s ability to deliver value. We expect the 2009 environment to remain challenging. Therefore, we have focused on securing longer term commitments from our larger customers while continuously aligning our overhead with the realities of the economic climate. Our consulting and software offerings play into important client needs in difficult times by assisting service providers in maximizing the efficiency of their platforms while ensuring the integrity of their revenue stream. These core competencies combined with our healthy balance sheet and flexible operating model should serve us well until visibility improves.”
Financial Results for the Fifty-Three Weeks Ended January 3, 2009
For the fifty-three weeks ended January 3, 2009, revenues increased to $74.0 million, compared with $71.9 million in the fifty-two week period ended December 29, 2007. TMNG Global’s gross margin was 44.6% for the year ended January 3, 2009, compared with 46.8% for the prior year.
Net loss for the fifty-three weeks ended January 3, 2009 was ($14.8) million or ($0.42) per diluted share, compared with a net loss of ($2.3) million or ($0.07) per diluted share for the fifty-two weeks ended December 29, 2007. GAAP results in 2008 include goodwill and intangible asset impairment charges of $14.5 million and the auction rate securities valuation adjustment of $280,000. Non-GAAP adjusted net income, adjusted for the after tax impact of non-cash expenses, including the impairment charges, ARS write-down, depreciation and amortization expense, and share-based compensation, was approximately $6.1 million, or $0.17 per diluted share, for the fifty-three weeks ended January 3, 2009. The comparable non-GAAP adjusted net income for the fifty-two weeks ended December 29, 2007 was $5.0 million, or $0.14 per diluted share, which also excluded expenses related to the review of the Company’s option granting practices and a gain on settlement of a foreign tax withholding dispute.
For the fifty-three weeks ended January 3, 2009, cash flow from operations was $6.1 million, compared to $1.4 million in the fifty-two week year-ago period.
In addition to reporting net income (loss) and net income (loss) per share on a GAAP basis, this press release contains certain non-GAAP adjustments which are described in the schedule entitled “Reconciliation of GAAP Net (Loss) Income to Non-GAAP Adjusted Net Income” that accompanies this press release. In making these non-GAAP adjustments, the Company took 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. 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 Company performance utilizing GAAP financial information. The Company believes that providing such adjusted results allows investors and other users of the Company’s financial statements to better understand TMNG Global’s comparative operating performance for the periods presented.
TMNG Global’s management uses the non-GAAP financial measure in its own evaluation of the Company’s performance, particularly when comparing performance to the prior year’s period. TMNG Global’s non-GAAP measure may differ from similar measures by other companies, even if similar terms are used to identify such measures. Although TMNG Global’s management believes the non-GAAP financial measure is useful in evaluating the performance of its business, TMNG Global acknowledges that items excluded from such measure have a material impact on the Company’s 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 TMNG Global’s results.
Conference Call
The Company will host a conference call at 5:00 p.m. ET today to discuss 2008 fourth quarter and full year results. Investors can access the conference call via a live webcast on the Company’s website, www.tmng.com, or by dialing 800-860-2442 in the United States or 412-858-4600 from international locations and referencing the TMNG Global call. 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 beginning February 27, 2009 at 9:00 a.m. ET by dialing 877-344-7529, pass code 427815, through March 5, 2009.
About TMNG Global
TMNG Global (NASDAQ: TMNG) is a leading provider of professional services to the converging communications industry. Its companies, TMNG, CSMG, 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 Boston, Chicago, London, New Jersey, New York, Shanghai and Washington, D. C.
Cautionary Statement Regarding Forward Looking Information
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, any statements that do not relate to historical or current facts constitute forward-looking statements, including any statements contained herein regarding expectations with respect to the Company’s future business, financial condition and results of operations. Forward-looking statements 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, the ability of the Company to successfully integrate recent acquisitions, conditions in the telecommunications industry, overall economic and business conditions (including the recent worsening of conditions in the credit markets and in general economic conditions), the demand for the Company’s services (including the recent slowing of client decisions on proposals and project opportunities along with scope reduction of existing projects), the level of cash and non-cash expenditures incurred by the Company, technological advances and competitive factors in the markets in which the Company competes, and the factors described in this press release and in TMNG Global’s filings with the Securities and Exchange Commission, including the risks described in TMNG Global’s periodic reports filed with the SEC, including, but not limited to, “Cautionary Statement Regarding Forward Looking Information” under Part I of its Annual Report on Form 10-K for the fiscal year ended December 29, 2007 and subsequent periodic reports containing updated disclosures of such risks. These filings are available at the SEC’s web site at www.sec.gov. TMNG Global does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances.
(Please see attached financial tables)
THE MANAGEMENT NETWORK GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Fifty- Fifty-
Fourteen Thirteen Three Two
Weeks Weeks Weeks Weeks
Ended Ended Ended Ended
-------- -------- -------- --------
Jan. 3, Dec. 29, Jan. 3, Dec. 29,
2009 2007 2009 2007
-------- -------- -------- --------
Revenues $ 14,397 $ 20,828 $ 74,042 $ 71,875
Cost of services (includes
net non-cash share-based
compensation expense of $98
and $178 for the fourteen weeks
ended January 3, 2009 and
the thirteen weeks ended
December 29, 2007, respectively,
and $545 and $302 for the
fifty-three weeks ended
January 3, 2009 and the
fifty-two weeks ended
December 29, 2007,
respectively) 8,670 10,955 41,055 238,263
-------- -------- -------- --------
Gross Profit 5,727 9,873 32,987 33,612
Operating Expenses:
Selling, general and
administrative (includes
net non-cash share-based
compensation expense of $295
and $556 for the fourteen
weeks ended January 3, 2009
and the thirteen weeks ended
December 29, 2007, respectively,
and $1,272 and $1,145 for the
fifty-three weeks ended
January 3, 2009 and the
fifty-two weeks ended
December 29, 2007,
respectively) 6,251 8,945 30,124 31,723
Special Committee investigation 109 2,560
Intangible asset amortization 537 1,463 3,916 3,612
Goodwill, intangible and
long-lived asset impairment 4,286 14,451
-------- -------- -------- --------
Total operating expenses 11,074 10,517 48,491 37,895
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Loss from operations (5,347) (644) (15,504) (4,283)
Other (expense) income:
Interest income, net 166 361 916 1,546
Other, net (267) (243) 452
-------- -------- -------- --------
Total other (expense)
income (101) 361 673 1,998
-------- -------- -------- --------
Loss before income tax
provision (5,448) (283) (14,831) (2,285)
Income tax benefit
(provision) 450 763 6 (52)
-------- -------- -------- --------
Net (loss) income $ (4,998) $ 480 $(14,825) $(2,337)
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(Loss) income per common share:
Basic and diluted $ (0.14) $0.01 $(0.42) $(0.07)
======= ======= ======= =======
Weighted average shares
used in calculation of
net (loss) income per
common share:
Basic 34,736 36,124 35,445 35,868
======= ======= ======= =======
Diluted 34,736 36,402 35,445 35,868
======= ======= ======= =======
THE MANAGEMENT NETWORK GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
Jan. 3, Dec. 29,
2009 2007
-------- --------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $5,956 $10,022
Short-term investments 17,125
Receivables:
Accounts receivable 8,247 13,044
Accounts receivable -- unbilled 4,540 7,804
-------- --------
12,787 20,848
Less: Allowance for doubtful accounts (379) (562)
-------- --------
Net receivables 12,408 20,286
Prepaid and other current assets 1,653 1,763
-------- --------
Total current assets 20,017 49,196
Property and equipment, net 1,801 1,784
Goodwill 6,240 13,365
Licenses and identifiable intangible assets, net 4,842 11,605
Noncurrent investments 13,404
Other assets 410 616
-------- --------
Total Assets $ 46,714 $76,566
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable $1,138 $1,927
Accrued payroll, bonuses and related expenses 4,053 5,038
Other accrued liabilities 2,907 2,466
Income tax liabilities 103 861
Deferred revenue 476 3,554
Accrued contingent consideration 161 1,616
Unfavorable and other contractual obligations 697 1,668
-------- --------
Total current liabilities 9,535 17,130
NONCURRENT LIABILITIES:
Deferred income tax liabilities 115 1,368
Unfavorable and other contractual obligations 1,062 1,716
Noncurrent borrowings 1,485
Other liabilities 891 524
-------- --------
Total noncurrent liabilities 3,553 3,608
Total stockholders' equity 33,626 55,828
-------- --------
Total Liabilities and Stockholders' Equity $46,714 $76,566
======== ========
THE MANAGEMENT NETWORK GROUP, INC.
RECONCILIATION OF GAAP NET (LOSS) INCOME
TO NON-GAAP ADJUSTED NET INCOME
(unaudited)
(in thousands, except per share data)
Fifty- Fifty-
Fourteen Thirteen Three Two
Weeks Weeks Weeks Weeks
Ended Ended Ended Ended
------------------ ------------------
Jan. 3, Dec. 29, Jan. 3, Dec. 29,
2009 2007 2009 2007
-------- -------- -------- --------
Reconciliation of GAAP net
(loss) income to non-GAAP
adjusted net income:
GAAP net (loss) income $(4,998) $480 $(14,825) $(2,337)
-------- -------- -------- --------
Special Committee
investigation 109 2,560
Goodwill, intangible and
long-lived asset impairment 4,286 14,451
Auction rate securities
impairment 280 280
Depreciation and amortization 966 1,814 5,385 4,872
Gain on settlement of foreign
withholding tax dispute (452)
Non-cash share based
compensation expense 393 734 1,817 1,447
Tax effect of applicable
non-GAAP adjustments (248) (462) (965) (1,078)
-------- -------- -------- --------
Adjustments to GAAP net
(loss) income 5,677 2,195 20,968 7,349
-------- -------- -------- --------
Non-GAAP adjusted net income $ 679 $ 2,675 $ 6,143 $ 5,012
======= ======= ======= =======
Reconciliation of GAAP net
(loss) income per diluted
common share to non-GAAP
adjusted net income per
diluted common share:
GAAP net (loss) income per
diluted common share $ (0.14) $0.01 $(0.42) $(0.07)
-------- -------- -------- --------
Special Committee investigation 0.00 0.07
Goodwill, intangible and
long-lived asset impairment 0.12 0.41
Auction rate securities
impairment 0.01 0.01
Depreciation and amortization 0.03 0.05 0.15 0.14
Gain on settlement of foreign
withholding tax dispute (0.01)
Non-cash share based
compensation expense 0.01 0.02 0.05 0.04
Tax effect of applicable
non-GAAP adjustments (0.01) (0.01) (0.03) (0.03)
-------- -------- -------- --------
Adjustments to GAAP net
(loss) income per diluted
common share 0.16 0.06 0.59 0.21
-------- -------- -------- --------
Non-GAAP adjusted net income
per diluted common share $ 0.02 $0.07 $ 0.17 $ 0.14
======= ======= ======= =======
Weighted average shares used
in calculation of diluted
net (loss) income per
common share 34,736 36,402 35,445 35,868
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Contact:
Brainerd Communicators
Media - Ray Yeung yeung@braincomm.com
Investors - Corey Kinger kinger@braincomm.com
212.986.6667
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