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View All NewsHudson Q4 revenue down, but focus is now on core businesses
Fourth-quarter revenue fell 14.3% in constant currency at Hudson Global Inc. (NASD: HSON). However, it rose 0.9% on a constant-currency basis when excluding the Americas IT and its Netherlands business. Hudson sold its Americas IT staffing business to Mastech Inc. last June and sold its Netherland business to InterBalance Group BV.
| (US$ thousands) | Q4 2015 | Q4 2014 | % growth | % constant currency |
| Revenue | $106,109 | $136,677 | -22.4% | -14.3% |
| Gross margin | $44,439 | $53,256 | -16.6% | -8.3% |
| Gross margin percentage | 41.9% | 39.0% | -- | |
| Net income/loss | -$2,626 | $2,743 | nm |
The company also exited its operations in the Ukraine, Czech Republic, Slovakia and Luxembourg last year, It also exited its legal eDiscovery business in the fourth quarter of 2014
Hudson aimed to streamline itself in the moves and focus on its core businesses — recruitment process outsourcing, talent management and recruitment.
Quote
"We continued to deliver constant currency gross margin growth in key practices and markets in the fourth quarter,” said CEO Stephen Nolan. “After completing significant strategic actions in 2014 and 2015 to narrow our focus on core businesses and reduce our cost structure, we are pleased to have delivered positive adjusted EBITDA in the fourth quarter.”
Revenue by geography
| (US$ thousands) | Q4 2015 | Q4 2014 | % growth |
| Hudson Americas | $3,731 | $11,709 | -68.1% |
| Hudson Asia Pacific | $53,268 | $58,351 | -8.7% |
| Hudson Europe | $49,110 | $66,617 | -26.3% |
Full-year results
| (US$ thousands) | 2015 | 2014 | % growth | % constant currency |
| Revenue | $463,197 | $581,192 | -20.3% | -9.7% |
| Gross margin | $187,710 | $222,845 | -15.8% | -5.0% |
| Gross margin percentage | 40.5% | 38.3% | -- | |
| Net income/loss | $2,329 | -$13,194 | -- |
Guidance
Hudson forecast revenue of between $95 million and $105 million in the first quarter.
Share price and market cap
Shares in Hudson were unchanged at $2.70 in early afternoon trading. The company had a market cap of $93.34 million, according to Yahoo!