Cartesian Inc (OTC:CRTN)

CRTN ($0.64) announced Q1 2017 results:

• Sales of $14.3 million vs $20.3 million in the prior year

• Non-GAAP net loss of $0.09 vs net loss of $0.07 in the prior year

Quotes from management:

“Our first quarter revenues were impacted by delayed project starts within several existing and new clients.  We expect revenues to improve going forward but our results demonstrate the need to accelerate the evolution of our business.  While management has implemented operational and structural changes to improve the cost structure, it is assessing what additional changes should be made to our service offerings, organization, go-to-market approach and general operations to accelerate the company's return to profitability and improve its ability to sustain profitability.  Our brand in the industry is strong and the markets we serve are undergoing significant change, offering us both opportunities and challenges.  We are confident that we can improve our focus and orient ourselves around industry growth drivers to build sustainable growth and profitability.”

CRTN ($1.39) announced that the company has regained compliance with the listing requirements of the NASDAQ.   

“As previously reported, on August 15, 2016, Cartesian received a letter from Nasdaq notifying the Company that it was not in compliance with the minimum bid price requirement set forth in the Nasdaq Rules for continued listing on The Nasdaq Capital Market. Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of US$1.00 per share, and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days.

On January 23, 2017, Cartesian received notification from Nasdaq stating that since the closing bid price of the Company's common shares had been greater than US$1.00 per share for the last 10 consecutive business days, from January 6, 2017 to January 20, 2017, Cartesian was in compliance with Listing Rule 5550(a)(2) and this matter is now closed.”

We highlighted CRTN back in November, noting that the Company was trading at near liquidation value (~$0.60).  In early December we offered our full reasons for tracking the company. CRTN subsequently climbed to $1.57, or ~2.5x the price from our first mention.

CRTN ($1.10) announced that demand for its network transformation services has been experiencing consistently strong growth in both North America and Europe, the Middle East, and Africa.  The company did not offer any quantifiable data, but we believe this is a good sign that the company’s restructuring efforts are continuing to have positive effects.  We highlighted CRTN back in November, noting that the Company was trading at near liquidation value (~$0.60).  In early December we offered our full reasons for tracking the company. CRTN subsequently hit a 6-month high of $1.36 after our coverage, more than double from our first mention.

Third Quarter 2014 Results

• Revenues in the third quarter of 2014 were $19.3 million, up 44.3% from $13.4 million in the third quarter of 2013 and up 11% from $17.4 million in the second quarter of 2014
• Q3 2014 non-GAAP EPS of of $0.11 vs $0.03

"We continue to execute on our transformation plan, and are pleased by our ability to generate 44% revenue growth in the third quarter. Both our North American and EMEA businesses are driving the growth and momentum as we continue to elevate our value proposition, deepen our relationships with key clients, and evolve our offerings with a focus on technical solutioning and alliance partnerships. Our partnership with Elutions is off to a good start and is building momentum; together we have an opportunity to deliver a truly unique and differentiated solution to the TMT market," said Donald Klumb, CEO of Cartesian. "In order to deliver sustainable growth and margin improvement, we are focused on increasing our mix of technical solutioning engagements, which approached 15% of revenues during the first nine months of the year. We continue making investments in our Ascertain solutions platform, especially in the areas of analytics solutions."

Second Quarter 2014 Results

• Revenues in the second quarter of 2014 were $17.4 million, up 24% from $14.0 million in the second quarter of 2013 and up 7% from $16.2 million in the first quarter of 2014
• Q2 2014 non-GAAP EPS of $0.17 vs a loss of $0.03

"We continued making solid progress in the second quarter as we drove 24% revenue growth by executing on our transformation plan. Our EMEA group continues to deliver strong growth and our North American business has gained traction, demonstrating the early impact of our strategic initiatives," said Donald Klumb, CEO of Cartesian. "Our success is tied to the early phases of our plan which involves deepening relationships with our largest clients and elevating our value proposition, combined with evolving our offerings for the long-term with a focus on technical solutioning and alliance partnerships. It is imperative that we balance delivering earnings on a recurring basis with making the right investments in technology and people essential to capturing the significant growth opportunities at hand. Technical solutions, such as managed analytics offerings centered around big data, and strategic alliances are key to driving sustainable growth in our business model."

OVERLAND PARK, Kan., June 18, 2014 (GLOBE NEWSWIRE) -- The Management Network Group, Inc. (TMNG), d/b/a Cartesian (Nasdaq:TMNG), a specialist provider of consulting services and managed solutions, today announced that at its Annual Meeting of Stockholders, stockholders approved an amendment to its Certificate of Incorporation to change the name of the company to Cartesian, Inc. In conjunction with the name change, the company is changing the ticker symbol of its common stock traded on The Nasdaq Global Market from TMNG to CRTN. The ticker symbol change will become effective at the start of trading tomorrow, June 19, 2014. The new CUSIP number for the company's common stock is 146534 102.

Stockholders with certificated shares should continue to hold their existing stock certificates, and are not required to submit their stock certificates for exchange. Direct registration accounts and any new stock certificates that are issued after the name change becomes effective will bear the name "Cartesian, Inc."

Since February 2014, the company has been operating under the brand name "Cartesian", which is the name of its existing UK-based subsidiary, and which unified the company's former entities TMNG Global and CSMG. Cartesian continues to serve its clients with excellence through its portfolio of consulting services in strategy, execution and managed solutions.

First Quarter 2014 Results

• Revenues in the first quarter of 2014 were $16.2 million, up 15.9% from $14.0 million in the first quarter of 2013 and up 16.6% from $13.9 million in the fourth quarter of 2013.
• Non-GAAP EPS of $0.05 vs $0.01 in the prior year

Fourth Quarter 2013 Results

• Revenues in the fourth quarter of 2013 were $13.9 million, up 7.7% from $12.9 million in the fourth quarter of 2012.
• The company reported non-GAAP EPS of $0.06 per diluted share for the fourth quarter of 2013, compared to $0.07 per diluted share for the fourth quarter of fiscal 2012.

"Cartesian enters 2014 with a solid foundation for renewed growth and improving profitability. We are executing on our transformational business strategy centered on deepening relationships with our largest clients, expanding our software-based technical solutions offerings, and developing strategic alliances that leverage our unique industry expertise to accelerate our growth," said Donald Klumb, CEO of Cartesian. "The groundwork for this strategy was laid in 2013, and with our newly unified operating structure under the Cartesian banner, we are in a good position to begin seeing the fruits of our efforts this year, highlighted by new solutions offerings and a new strategic partnership with Elutions to deliver a M2M big data solution."

Third Quarter 2013 Results

• Revenues in the third quarter of 2013 were $13.4 million, up 5.2% from $12.7 million in the third quarter of 2012.
• The company reported non-GAAP EPS of $0.06 for the third quarter of 2013, compared to $0.05 in the third quarter of 2012.

"Our third quarter results, including year-over-year revenue growth and modest GAAP and non-GAAP net income, demonstrate our steady progress in executing on the three pillars of our strategic plan to return TMNG to sustainable profitability," said Donald Klumb, CEO of TMNG Global. "We are making inroads in evolving our consulting and technical solutions offerings, including our first commercial 'big data' contract, which are built upon our proprietary Ascertain software platform. We are prudently investing in expanding our software offerings, while utilizing our extensive industry and client knowledge to ensure our solutions deliver differentiated value for our clients. Finally, we are nearing completion of an arrangement with a strategic alliance partner which relates to an M2M big data solution, which we currently expect to finalize in the fourth quarter. We are confident that our strategy is the right one to position TMNG for the future. In addition, we have remained focused on our cost structure and our balance sheet remains solid, with a healthy cash position of $12.3 million and working capital of $18.2 million."

Second Quarter Results

• Revenues in the second quarter of 2013 were $14.0 million, up 4.0% from $13.5 million in the second quarter of 2012 and flat with $14.0 million in the first quarter of 2013.
• Reported non-GAAP loss per share of $0.00, compared to a loss of $0.02 for the same quarter 2012.

"We made continued progress executing on our strategic plan in the second quarter, delivering year-over-year revenue growth and expanding margins, and on a year-to-date basis our bottom line results have improved substantially from the prior year," said Donald Klumb, CEO of TMNG Global. "Importantly, we are further enhancing the depth of our relationships with key customers and are continuing to innovate our technical solution offerings, which are centered on our flagship Ascertain software platform. The early momentum in this area is driving a larger proportion of our total revenue mix. We remain focused on fostering innovation and evolving our business model, while driving further operational efficiencies. In addition, our balance sheet is healthy, with a solid cash position of $11.5 million and working capital of $17.7 million."

First Quarter 2013 Results

• Revenues in the first quarter of 2013 were $14.0 million, up from $13.8 million in the first quarter of 2012 and $12.9 million in the fourth quarter of 2012.
• After adjusting for the after tax impact of depreciation and amortization expense and share-based compensation expense, non-GAAP adjusted net income was $0.1 million, or $0.01 per diluted share during the first quarter of 2013. The comparable non-GAAP adjusted net loss was ($1.0) million, or ($0.13) per diluted share, for the first quarter of fiscal 2012.

"In the first quarter of 2013, we delivered the first stages of revenue growth and overall results aligned with our expectations given the seasonality of some personnel-related costs. More importantly, our success in 2013 will be measured by how effectively we innovate and evolve our model to deliver sustainable, profitable growth," said Donald Klumb, CEO of TMNG Global. "We are focused on executing our strategic plan for growth, which includes enhancing relationships with key customers, advancing alliances with strategic business partners, and expanding our technical solution offerings, particularly around the Ascertain software platform. As we pursue these growth opportunities, we are continuing to carefully manage our expenses and our balance sheet while emphasizing deeper relationships with our largest clients."

Fourth Quarter 2012 Results

• Revenues in the fourth quarter of 2012 were $12.9 million, compared to $13.5 million in the fourth quarter of 2011 and $12.7 million in the third quarter of 2012. - See more at: http://globenewswire.com/news-release/2013/02/26/526446/10023079/en/TMNG-Global-Reports-Fourth-Quarter-and-Full-Year-2012-Financial-Results.html
  
• After adjusting for the after tax impact of depreciation and amortization expense and share-based compensation expense, non-GAAP adjusted net income was $0.5 million, or $0.07 per diluted share during the fourth quarter of 2012. The comparable non-GAAP adjusted net loss was ($1.2) million, or ($0.16) per diluted share, for the fourth quarter of fiscal 2011 and $0.4 million, or $0.05 per diluted share, for the third quarter of 2012.

"In 2012, TMNG Global accomplished each of the goals we outlined at the beginning of the year. We achieved profitability, on both a GAAP and non-GAAP basis, in the second half of the year; we reduced our expense structure and drove efficiency and enhanced accountability in our business; and we established a culture of increased communication and trust. And, as we delivered against our strategic plans to evolve the firm, we started to see early signs of renewed growth in the fourth quarter," said Donald Klumb, CEO of TMNG Global. "In 2013, we are sharpening our focus on building the foundations for growth by improving intra-company collaboration across business units, deepening our relationships with strategic customers, tightening our alliances with key business partners, and enhancing our software solutioning capabilities. At the same time, we are leveraging our strengths to capitalize on opportunities in targeted growth markets. We enter the year with a much improved cost structure and a strong balance sheet, which includes net working capital of $18.2 million."