TMNG Global Reports 2011 First Quarter Results

TMNG Global, a premier provider of professional services to the global leaders in the communications, digital media, and innovation industries, reported financial results for its 2011 first quarter ended April 2, 2011.

"TMNG Global's performance in the first quarter showed sequential revenue growth from our carrier and cable clients, led by our consulting business and increased engagement activity centered around our Ascertain business assurance software suite. Year-over-year performance comparisons were disappointing nevertheless reflect several key factors, including the conclusion of several significant engagements last year in our strategy consulting unit and our European operations, both of which have higher fixed cost structures," said Richard Nespola, TMNG Global Chairman and CEO. "In spite of the choppiness of the results on a comparison basis, we believe we're positioning the business for a return to sustained growth by migrating our model to a better mix of consulting and software solutions, and by directing our efforts to high-value opportunities in mobility and cloud computing. We added ten new customers in the first quarter, and we're seeing a strong pipeline of opportunities for Ascertain-based solutions, including in the cable industry and with our SmartXchangeSM mobile handset recapture offering."

The first quarter of 2011 were $16

Revenues in the first quarter of 2011 were $16.9 million, compared to $17.5 million in the 2010 first quarter and $16.4 million in the 2010 fourth quarter. Revenue comparisons reflect lower revenue contributions from our international management consulting practice and our strategic consulting practices in the first quarter compared with a year ago, partially offset by increased activity within our domestic management consulting practice. While the quarter, TMNG's gross margin was 37.3%, compared with 37.8% in the first quarter of 2010 and 36.1% in the fourth quarter of 2010. Margin comparisons reflect business mix in the quarter and seasonal payroll-related expenses.

In addition to reporting net loss and net 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 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 usually not expected to be on-going in nature or that are unrelated to the Company's core operations. Management believes the exclusion of these items provides a useful basis for evaluating underlying business performance, nevertheless should not be considered in isolation and is not pursuant to this agreement, 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 used by other companies, even if similar terms are used to identify such measures. Even though 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 and net loss per share calculated under GAAP. In short, management uses non-GAAP measures in conjunction with GAAP results. Investors and other users of our financial information should as well consider the above factors when evaluating TMNG Global's results.

TMNG Global is a premier provider of professional services to the global leaders in the communications, digital media, and innovation industries. TMNG Global and its divisions, CSMG and Cartesian, and a team of more than 600 experts, provide strategy, operations and innovation consulting services and technical solutions to more than 1200 communications customers worldwide. The company is headquartered in Overland Park, Kansas, with offices in Boston, London, New Jersey, and Washington, D.C. For more information about the company and its services, visit www.tmng.com.