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View All NewsGEE Group revenue falls 14% in fiscal Q4
Revenue fell 13.9% at GEE Group (NYSE: JOB) in its fiscal fourth quarter ended Sept. 30. Contract staffing revenue fell 14.5% at the Jacksonville, Fla.-based staffing provider; direct-hire revenue fell 9.6%.
| (US$ millions) | Q4 2018 | Q4 2017 | % change |
| Net revenue | $39,928 | $46,354 | -13.9% |
| Gross profit | $14,811 | $16,823 | -12.0% |
| Gross margin | 37.1% | 36.3% | |
| Net loss/income | ($1,008) | $3,726 | nm |
The company attributed the revenue decrease primarily to a performance improvement plan in fiscal 2018 which reduced the number of marginally performing and underperforming full-time employees in sales, recruitment and account management coupled with certain office consolidations.
Revenue by segment
| (US$ thousands) | Q4 2018 | Q4 2017 | % change |
| Contract staffing services | $34,368 | $40,201 | -14.5% |
| Direct hire placement services | $5,560 | $6,153 | -9.6% |
Quote
“We will judiciously add recruiting and sales resources to help us grow our business as we obtain new customers and further penetrate existing accounts,” Chairman and CEO Derek Dewan said. “The Company has a clear focus to increase organic growth and to be opportunistic with potential acquisitions, which we will aggressively pursue in the new year.”
Full-year revenue
| (US$ thousands) | FY 2018 | FY 2017 | % change |
| Net revenue | $165,284 | $134,978 | 22.5% |
| Gross profit | $58,932 | $44,975 | 31.0% |
| Gross margin | 35.7% | 33.3% | |
| Net loss | ($7,564) | ($2,372) | nm |
Share price and market cap
GEE Group shares were up 15.24% to 81 cents at 12:18 p.m. Eastern time; the company had a market cap of $7.88 million, according to FT.com.