TMNG Reports First Quarter 2001 Results

Revenue Increases 12%; Key Indicators All Solid



Apr 25, 2001, 01:00 ET from The Management Network Group, Inc.

    OVERLAND PARK, Kan., April 25 /PRNewswire/ --
 The Management Network Group, Inc. (Nasdaq: TMNG), a leading provider of
 management consulting services to the global telecommunications industry,
 today announced financial results for the 2001 first quarter, ended
 March 31, 2001.
     Revenue for the first quarter increased approximately 12% to $18.3 million
 compared with $16.4 million for the first quarter of 2000.  Pro forma gross
 margin (excluding stock compensation charges) for the first quarter was
 approximately 48%, unchanged from the first quarter of 2000.
     TMNG's pro forma net income (excluding stock compensation and goodwill
 amortization) was $3.0 million, or $0.10 per diluted share, compared with
 $3.1 million or $0.11 per diluted share, in the first quarter of fiscal 2000.
 Net income per fully diluted share reported in accordance with GAAP was
 $0.08 per share, compared with $0.06 per share in the first quarter of 2000,
 an increase of 33%.  Diluted shares outstanding were approximately 6% higher
 in the 2001 period.  In addition, TMNG generated in excess of $5 million in
 cash flow from operations in the 2001 period.
     "All of our key business indicators are within targeted ranges, and we
 continue to expect the first half of 2001 to show growth over the first half
 of 2000 despite the challenges faced by our primary telecom industry vertical"
 commented Rich Nespola, President and CEO of TMNG.  "Highlights of the first
 quarter included the addition of 18 new customers, a continued minimal level
 of employee attrition, and the continued integration and customer base
 expansion of TWG Marketing, acquired last year.  The TMNG-TWG combination has
 met our expectations by increasing new revenue opportunities, and TWG's
 profitability has accelerated toward historical TMNG levels.
     "We look ahead with confidence.  TMNG is solidly profitable, generating
 positive operating cash flow and consistent gross margins, and has a
 potentially significant pipeline of new opportunities.  We also have a very
 healthy balance sheet with over $75.5 million in cash."
     TMNG will discuss its results in more detail and provide guidance on
 future performance on its previously announced conference call, to be held at
 5:30 ET today.  To participate, please dial 888-313-7820.
 
     About TMNG
     The Management Network Group, Inc. (TMNG) is a leading provider of
 strategy, management, marketing, operational and e-business consulting
 services to the global telecommunications industry.  With over 500 consultants
 worldwide, TMNG serves communications service providers, technology companies
 and financial services firms.  Since the company's inception in 1990, TMNG and
 its subsidiaries, TWG Marketing and TMNG.com, have performed services for over
 400 clients worldwide.  The company is headquartered in Overland Park, KS and
 has offices located in Chicago, Washington, D.C., Boston, Sacramento, San
 Francisco, New York, Toronto, London and Buenos Aires.  TMNG can be reached at
 1.888.480.TMNG (8664) or online at http://www.tmng.com.
 
     Statements contained in this release may contain 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 revenues and 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, overall economic and
 business conditions, the demand for the Company's goods and 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.
 
 
                       THE MANAGEMENT NETWORK GROUP, INC.
                          CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                                    (Unaudited)     (Audited)
                                                      March 31,    December 30,
                                                        2001           2000
           ASSETS
 
     CURRENT ASSETS:
      Cash and cash equivalents                       $75,562        $70,583
      Receivables, net                                 22,151         25,242
      Other assets                                      1,560          1,280
        Total current assets                           99,273         97,105
 
     PROPERTY & EQUIPMENT, net                          1,491          1,298
 
     GOODWILL, net                                     17,550         18,016
 
     DEFERRED TAXES                                     3,025          3,010
 
     TOTAL ASSETS                                    $121,339       $119,429
 
           LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
      Trade accounts payable                             $901         $1,282
      Accrued liabilities and other                     5,946          6,675
        Total current liabilities                       6,847          7,957
 
     STOCKHOLDERS' EQUITY                             114,492        111,472
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $121,339       $119,429
 
 
                       THE MANAGEMENT NETWORK GROUP, INC.
                       CONSOLIDATED STATEMENTS OF INCOME
                     (In thousands, except per share data)
                                  (Unaudited)
 
                                                      Q1 2001        Q1 2000
 
     Revenues                                         $18,334        $16,402
 
     Cost of services:
      Direct cost of services                           9,544          8,529
      Equity related charges                              413          1,916
        Total                                           9,957         10,445
 
     Gross profit                                       8,377          5,957
 
     Operating expenses:
      Selling, general and administrative               5,310          3,471
      Equity related charges                              198            418
        Total                                           5,508          3,889
 
     Income from operations                             2,869          2,068
 
     Other income                                         706            714
 
     Provision for income taxes                         1,238          1,104
 
     Net income                                        $2,337         $1,678
 
     Net income per common share
       Basic                                            $0.08          $0.06
       Diluted                                          $0.08          $0.06
 
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X53621822
 
 

SOURCE The Management Network Group, Inc.
    OVERLAND PARK, Kan., April 25 /PRNewswire/ --
 The Management Network Group, Inc. (Nasdaq: TMNG), a leading provider of
 management consulting services to the global telecommunications industry,
 today announced financial results for the 2001 first quarter, ended
 March 31, 2001.
     Revenue for the first quarter increased approximately 12% to $18.3 million
 compared with $16.4 million for the first quarter of 2000.  Pro forma gross
 margin (excluding stock compensation charges) for the first quarter was
 approximately 48%, unchanged from the first quarter of 2000.
     TMNG's pro forma net income (excluding stock compensation and goodwill
 amortization) was $3.0 million, or $0.10 per diluted share, compared with
 $3.1 million or $0.11 per diluted share, in the first quarter of fiscal 2000.
 Net income per fully diluted share reported in accordance with GAAP was
 $0.08 per share, compared with $0.06 per share in the first quarter of 2000,
 an increase of 33%.  Diluted shares outstanding were approximately 6% higher
 in the 2001 period.  In addition, TMNG generated in excess of $5 million in
 cash flow from operations in the 2001 period.
     "All of our key business indicators are within targeted ranges, and we
 continue to expect the first half of 2001 to show growth over the first half
 of 2000 despite the challenges faced by our primary telecom industry vertical"
 commented Rich Nespola, President and CEO of TMNG.  "Highlights of the first
 quarter included the addition of 18 new customers, a continued minimal level
 of employee attrition, and the continued integration and customer base
 expansion of TWG Marketing, acquired last year.  The TMNG-TWG combination has
 met our expectations by increasing new revenue opportunities, and TWG's
 profitability has accelerated toward historical TMNG levels.
     "We look ahead with confidence.  TMNG is solidly profitable, generating
 positive operating cash flow and consistent gross margins, and has a
 potentially significant pipeline of new opportunities.  We also have a very
 healthy balance sheet with over $75.5 million in cash."
     TMNG will discuss its results in more detail and provide guidance on
 future performance on its previously announced conference call, to be held at
 5:30 ET today.  To participate, please dial 888-313-7820.
 
     About TMNG
     The Management Network Group, Inc. (TMNG) is a leading provider of
 strategy, management, marketing, operational and e-business consulting
 services to the global telecommunications industry.  With over 500 consultants
 worldwide, TMNG serves communications service providers, technology companies
 and financial services firms.  Since the company's inception in 1990, TMNG and
 its subsidiaries, TWG Marketing and TMNG.com, have performed services for over
 400 clients worldwide.  The company is headquartered in Overland Park, KS and
 has offices located in Chicago, Washington, D.C., Boston, Sacramento, San
 Francisco, New York, Toronto, London and Buenos Aires.  TMNG can be reached at
 1.888.480.TMNG (8664) or online at http://www.tmng.com.
 
     Statements contained in this release may contain 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 revenues and 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, overall economic and
 business conditions, the demand for the Company's goods and 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.
 
 
                       THE MANAGEMENT NETWORK GROUP, INC.
                          CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                                    (Unaudited)     (Audited)
                                                      March 31,    December 30,
                                                        2001           2000
           ASSETS
 
     CURRENT ASSETS:
      Cash and cash equivalents                       $75,562        $70,583
      Receivables, net                                 22,151         25,242
      Other assets                                      1,560          1,280
        Total current assets                           99,273         97,105
 
     PROPERTY & EQUIPMENT, net                          1,491          1,298
 
     GOODWILL, net                                     17,550         18,016
 
     DEFERRED TAXES                                     3,025          3,010
 
     TOTAL ASSETS                                    $121,339       $119,429
 
           LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
      Trade accounts payable                             $901         $1,282
      Accrued liabilities and other                     5,946          6,675
        Total current liabilities                       6,847          7,957
 
     STOCKHOLDERS' EQUITY                             114,492        111,472
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $121,339       $119,429
 
 
                       THE MANAGEMENT NETWORK GROUP, INC.
                       CONSOLIDATED STATEMENTS OF INCOME
                     (In thousands, except per share data)
                                  (Unaudited)
 
                                                      Q1 2001        Q1 2000
 
     Revenues                                         $18,334        $16,402
 
     Cost of services:
      Direct cost of services                           9,544          8,529
      Equity related charges                              413          1,916
        Total                                           9,957         10,445
 
     Gross profit                                       8,377          5,957
 
     Operating expenses:
      Selling, general and administrative               5,310          3,471
      Equity related charges                              198            418
        Total                                           5,508          3,889
 
     Income from operations                             2,869          2,068
 
     Other income                                         706            714
 
     Provision for income taxes                         1,238          1,104
 
     Net income                                        $2,337         $1,678
 
     Net income per common share
       Basic                                            $0.08          $0.06
       Diluted                                          $0.08          $0.06
 
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X53621822
 
 SOURCE  The Management Network Group, Inc.