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View All NewsGEE Group revenue approaches $40 million in fiscal second quarter
GEE Group Inc. (NYSE MKT: JOB) reported revenue rose 85.0% to $39.9 million in its fiscal second quarter ended March 31.
| (US$ millions) | Q2 2018 | Q2 2017 | % change |
| Net revenue | $39,857 | $21,549 | 85.0% |
| Gross profit | $13,626 | $5,655 | 141.0% |
| Gross margin | 34.2% | 26.2% | |
| Net loss | ($2,822) | ($129) | nm |
GEE Group acquired SNI Companies in March 2017 for $66.3 million, according to a filing with the US Securities and Exchange Commission. According to the company, SNI contributed significantly to the increase in overall revenue, with a major contribution to both professional contract staffing and professional direct hire services revenue.
Revenue by segment
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| Contract staffing services | $34,520 | $20,090 | 71.8% |
| Direct hire placement services | $5,337 | $1,459 | nm |
Both direct-hire placement and contract staffing services revenue were affected somewhat by a slower-than-normal post-holiday recovery in hiring in many markets coupled with inclement weather in the Northeast, Mid-Atlantic and Midwest regions where the company has offices, according to the company. The result was a slower-than-normal start for the 2018 fiscal second quarter resulting in a reduction in billable hours for contract workers as well as fewer direct hire placements during the months of January and February. The company said it experienced a pickup in business in March, which extended into April.
Quote
“We are encouraged about the increased use of contingent labor in the ‘gig economy’. Secular changes in the workforce coupled with a very tight domestic job market are driving the demand for all of our services,” Chairman and CEO Derek Dewan said.
Share price and market cap
Shares in GEE Group were up 4.94% to $2.55 as of 12:34 p.m. Eastern time and the company had a market cap of $27.4 million.