Daily News
View All NewsCDI revenue falls in Q2, acquisition pending
August 09, 2017
Second-quarter revenue fell 25.2% year over year at CDI Corp. (NYSE: CDI), the Philadelphia-based provider of IT and engineering staffing that is in the process of being acquired by private equity firm AE Industrial Partners.
The revenue decline was 17.8% when adjusted for the Sept. 2016 sale of its UK-based subsidiary, CDI AndersElite Ltd.
CDI posted a net loss of $7.9 million.
| (US$ thousands) | Q2 2017 | Q2 2016 | % change |
| Revenue | $169,468 | $226,693 | -25.2% |
| Gross profit | $32,284 | $42,095 | -23.3% |
| Gross margin percentage | 19.1% | 18.6% | |
| Net loss | ($7,891) | ($7,484) | nm |
Revenue by segment
| (US$ thousands) | Q2 2017 | Q2 2016 | % change |
| Enterprise talent | |||
| North America staffing | $86,820 | $112,978 | -23.2% |
| UK staffing | - | $20,502 | |
| Total | $86,820 | $133,480 | -35.0% |
| Specialty talent and technology solutions | |||
| Specialty talent | $9,864 | $10,951 | -9.9% |
| Technology solutions | $7,344 | $8,178 | -10.2% |
| Total | $17,208 | $19,129 | -10.0% |
| Engineering solutions | |||
| Energy, chemicals and infrastructure | $26,161 | $33,279 | -21.4% |
| Aerospace and industrial equipment | $12,030 | $12,525 | -4.0% |
| Government services | $16,125 | $15,349 | 5.1% |
| Total | $54,316 | $61,153 | -11.2% |
| Management Recruiters International | |||
| Contract staffing | $8,575 | $9,752 | -12.1% |
| Royalties and franchise fees | $2,549 | $3,179 | -19.8% |
| Total | $11,124 | $12,931 | -14.0% |
Gross margin by segment
| Q2 2017 | Q2 2016 | |
| Enterprise talent | 10.1% | 11.6% |
| Specialty talent and technology solutions | 27.2% | 28.8% |
| Engineering solutions | 24.8% | 24.2% |
| Management Recruiters International | 47.9% | 49.3% |
Share price and market cap
Shares in CDI were unchanged in early afternoon trading today at $8.20. The company had a market cap of $154.10 million.