Management Network Group Inc. (TMNG, Financial) filed Quarterly Report for the period ended 2011-07-02.
Management Network Group Inc. has a market cap of $16.93 million; its shares were traded at around $2.18 with and P/S ratio of 0.25.
Revenue Recognition — We recognize revenues from time and materials consulting contracts in the period in which our services are performed. We recognized $7.2 million and $6.4 million in revenues from time and materials contracts during the thirteen weeks ended July 2, 2011 and July 3, 2010, respectively. We recognized $15.3 million and $12.7 million in revenues from time and materials contracts during the twenty-six weeks ended July 2, 2011 and July 3, 2010, respectively In addition to time and materials contracts, our other types of contracts include fixed fee contracts and contingent fee contracts. During the thirteen weeks ended June 2, 2011 and July 3, 2010, we recognized $9.9 million and $10.6 million in revenues on these other types of contracts, respectively. We recognized $18.8 million and $21.7 million in revenues from these other types of contracts during the twenty-six weeks ended July 2, 2011 and July 3, 2010, respectively. We recognize revenues on milestone or deliverables-based fixed fee contracts and time and materials contracts not to exceed contract price using the percentage of completion-like method described by FASB ASC 605-35, "Revenue Recognition — Construction-Type and Production-Type Contracts" For fixed fee contracts where services are not based on providing deliverables or achieving milestones, we recognize revenues on a straight-line basis over the period during which such services are expected to be performed. In connection with some fixed fee contracts, we receive payments from customers that exceed recognized revenues. We record the excess of receipts from customers over recognized revenue as deferred revenue. Deferred revenue is classified as a current liability to the extent it is expected to be earned within twelve months from the date of the balance sheet.
North America Segment — North America segment revenues decreased 0.7% to $13.2 million for the thirteen weeks ended July 2, 2011 from $13.3 million for the thirteen weeks ended July 3, 2010. During the thirteen weeks ended July 2, 2011, the North America segment provided services on 90 customer projects, compared to 79 projects performed in the thirteen weeks ended July 3, 2010. Average revenue per project was $147,000 in the thirteen weeks ended July 2, 2011, compared to $169,000 in the thirteen weeks ended July 3, 2010. Revenues recognized in connection with fixed price engagements totaled $7.7 million and $8.2 million, representing 58.0% and 61.5% of total revenues of the segment, for the thirteen weeks ended July 2, 2011 and July 3, 2010, respectively. Revenues from software licensing and related implementation fees during the thirteen weeks ended July 2, 2011 were $471,000. There were no revenues from software licensing arrangements during the thirteen weeks ended July 3, 2010.
EMEA Segment— EMEA segment revenues increased by 7.4% to $3.9 million for the thirteen weeks ended July 2, 2011 from $3.6 million for the thirteen weeks ended July 3, 2010. During the thirteen weeks ended July 2, 2011 and July 3, 2010, this segment provided services on 62 and 92 customer projects, respectively. Average revenue per project was approximately $51,000 and $33,000, respectively, for the thirteen weeks ended July 2, 2011 and July 3, 2010. Revenues from post-contract software related support services were approximately $721,000 and $631,000 for the thirteen weeks ended July 2, 2011 and July 3, 2010, respectively. There were no revenues from software licensing during the thirteen weeks ended July 2, 2011 and July 3, 2010.
North America Segment — North America segment revenues decreased 0.5% to $26.3 million for the twenty-six weeks ended July 2, 2011 from $26.4 million for the twenty-six weeks ended July 3, 2010. During the twenty-six weeks ended July 2, 2011, the North America segment provided services on 115 customer projects, compared to 117 projects performed in the twenty-six weeks ended July 3, 2010. Average revenue per project was $229,000 in the twenty-six weeks ended July 2, 2011, compared to $226,000 in the twenty-six weeks ended July 3, 2010. There was a greater mix of strategy engagements in the 2010 period when compared to 2011. Revenues recognized in connection with fixed price engagements totaled $14.5 million and $16.9 million, representing 55.1% and 63.8% of total revenues of the segment, for the twenty-six weeks ended July 2, 2011 and July 3, 2010, respectively. Revenues from software licensing and related implementation fees during the twenty-six weeks ended July 2, 2011 were $679,000. There were no revenues from software licensing arrangements during the twenty-six weeks ended July 3, 2010.
EMEA Segment— EMEA segment revenues decreased by 2.8% to $7.8 million for the twenty-six weeks ended July 2, 2011 from $8.0 million for the twenty-six weeks ended July 3, 2010. All revenues were generated internationally. During the twenty-six weeks ended July 2, 2011 and July 3, 2010, this segment provided services on 93 and 135 customer projects, respectively. Average revenue per project was approximately $68,000 and $50,000, respectively, for the twenty-six weeks ended July 2, 2011 and July 3, 2010. Revenues from post-contract software related support services were approximately $1.4 million and $1.3 million for the twenty-six weeks ended July 2, 2011 and July 3, 2010, respectively. There were no revenues from software licensing during the twenty-six weeks ended July 2, 2011 and July 3, 2010.
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Management Network Group Inc. has a market cap of $16.93 million; its shares were traded at around $2.18 with and P/S ratio of 0.25.
Highlight of Business Operations:
Management has focused on aligning operating costs with operating segment revenues. Selling, general and administrative expenses were $7.2 million for the thirteen weeks ended July 2, 2011 compared to $6.8 million for the thirteen weeks ended July 3, 2010. Selling, general and administrative expenses were $14.5 million for the twenty-six weeks ended July 2, 2011 compared to $13.9 million for the twenty-six weeks ended July 3, 2010. Selling expenses during the thirteen and twenty-six weeks ended July 2, 2011 included $503,000 and $611,000, respectively, of transition and severance costs for personnel as we continue to reduce our cost structure. We will continue to evaluate selling, general and administrative expenses to maintain an appropriate cost structure relative to revenue levels.Revenue Recognition — We recognize revenues from time and materials consulting contracts in the period in which our services are performed. We recognized $7.2 million and $6.4 million in revenues from time and materials contracts during the thirteen weeks ended July 2, 2011 and July 3, 2010, respectively. We recognized $15.3 million and $12.7 million in revenues from time and materials contracts during the twenty-six weeks ended July 2, 2011 and July 3, 2010, respectively In addition to time and materials contracts, our other types of contracts include fixed fee contracts and contingent fee contracts. During the thirteen weeks ended June 2, 2011 and July 3, 2010, we recognized $9.9 million and $10.6 million in revenues on these other types of contracts, respectively. We recognized $18.8 million and $21.7 million in revenues from these other types of contracts during the twenty-six weeks ended July 2, 2011 and July 3, 2010, respectively. We recognize revenues on milestone or deliverables-based fixed fee contracts and time and materials contracts not to exceed contract price using the percentage of completion-like method described by FASB ASC 605-35, "Revenue Recognition — Construction-Type and Production-Type Contracts" For fixed fee contracts where services are not based on providing deliverables or achieving milestones, we recognize revenues on a straight-line basis over the period during which such services are expected to be performed. In connection with some fixed fee contracts, we receive payments from customers that exceed recognized revenues. We record the excess of receipts from customers over recognized revenue as deferred revenue. Deferred revenue is classified as a current liability to the extent it is expected to be earned within twelve months from the date of the balance sheet.
North America Segment — North America segment revenues decreased 0.7% to $13.2 million for the thirteen weeks ended July 2, 2011 from $13.3 million for the thirteen weeks ended July 3, 2010. During the thirteen weeks ended July 2, 2011, the North America segment provided services on 90 customer projects, compared to 79 projects performed in the thirteen weeks ended July 3, 2010. Average revenue per project was $147,000 in the thirteen weeks ended July 2, 2011, compared to $169,000 in the thirteen weeks ended July 3, 2010. Revenues recognized in connection with fixed price engagements totaled $7.7 million and $8.2 million, representing 58.0% and 61.5% of total revenues of the segment, for the thirteen weeks ended July 2, 2011 and July 3, 2010, respectively. Revenues from software licensing and related implementation fees during the thirteen weeks ended July 2, 2011 were $471,000. There were no revenues from software licensing arrangements during the thirteen weeks ended July 3, 2010.
EMEA Segment— EMEA segment revenues increased by 7.4% to $3.9 million for the thirteen weeks ended July 2, 2011 from $3.6 million for the thirteen weeks ended July 3, 2010. During the thirteen weeks ended July 2, 2011 and July 3, 2010, this segment provided services on 62 and 92 customer projects, respectively. Average revenue per project was approximately $51,000 and $33,000, respectively, for the thirteen weeks ended July 2, 2011 and July 3, 2010. Revenues from post-contract software related support services were approximately $721,000 and $631,000 for the thirteen weeks ended July 2, 2011 and July 3, 2010, respectively. There were no revenues from software licensing during the thirteen weeks ended July 2, 2011 and July 3, 2010.
North America Segment — North America segment revenues decreased 0.5% to $26.3 million for the twenty-six weeks ended July 2, 2011 from $26.4 million for the twenty-six weeks ended July 3, 2010. During the twenty-six weeks ended July 2, 2011, the North America segment provided services on 115 customer projects, compared to 117 projects performed in the twenty-six weeks ended July 3, 2010. Average revenue per project was $229,000 in the twenty-six weeks ended July 2, 2011, compared to $226,000 in the twenty-six weeks ended July 3, 2010. There was a greater mix of strategy engagements in the 2010 period when compared to 2011. Revenues recognized in connection with fixed price engagements totaled $14.5 million and $16.9 million, representing 55.1% and 63.8% of total revenues of the segment, for the twenty-six weeks ended July 2, 2011 and July 3, 2010, respectively. Revenues from software licensing and related implementation fees during the twenty-six weeks ended July 2, 2011 were $679,000. There were no revenues from software licensing arrangements during the twenty-six weeks ended July 3, 2010.
EMEA Segment— EMEA segment revenues decreased by 2.8% to $7.8 million for the twenty-six weeks ended July 2, 2011 from $8.0 million for the twenty-six weeks ended July 3, 2010. All revenues were generated internationally. During the twenty-six weeks ended July 2, 2011 and July 3, 2010, this segment provided services on 93 and 135 customer projects, respectively. Average revenue per project was approximately $68,000 and $50,000, respectively, for the twenty-six weeks ended July 2, 2011 and July 3, 2010. Revenues from post-contract software related support services were approximately $1.4 million and $1.3 million for the twenty-six weeks ended July 2, 2011 and July 3, 2010, respectively. There were no revenues from software licensing during the twenty-six weeks ended July 2, 2011 and July 3, 2010.
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