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View All NewsKforce Q1 revenue rises 4% from tech and government services
Kforce Inc. (NASD: KFRC) reported first-quarter revenue rose 3.7%. Revenue growth came from technology, the firm’s largest single segment, and in government solutions; finance and accounting revenue fell 7.9%.
Overall, first-quarter flex revenue rose 4.2% at the Tampa, Fla.-based professional staffing provider. Direct-hire revenue fell 1.0%
| (US$ thousands) | Q1 2018 | Q1 20167 | % change |
| Revenue | $346,293 | $333,992 | 3.7% |
| Gross profit | $100,188 | $97,135 | 3.1% |
| Gross margin percentage | 28.9% | 29.1% | |
| Net income | $9,175 | $5,902 | 55.5% |
Big data, artificial intelligence and machine learning continue to be in high demand, as well as cloud computing, cybersecurity, mobility and digital marketing, the company said in a conference call with analysts.
Revenue by function and segment
| (US$ thousands) | Q1 2018 | Q1 2017 | % change |
| Total flex revenue | $332,817 | $319,332 | 4.2% |
| Total direct-hire revenue | $11,395 | $11,505 | -1.0% |
| Technology | |||
| Technology flex revenue | $231,496 | $216,886 | 6.7% |
| Technology direct-hire revenue | $5,001 | $5,159 | -3.1% |
| Total technology revenue | $236,497 | $222,045 | 6.5% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $74,550 | $80,949 | -7.9% |
| Finance & Accounting direct-hire revenue | $6,394 | $6,346 | 0.8% |
| Total Finance & Accounting revenue | $80,944 | $87,295 | -7.3% |
| Government Solutions flex revenue | $26,771 | $21,497 | 24.5% |
Gross margin by segment
| Q1 2018 | Q1 2017 | |
| Technology flex | 26.1% | 25.8% |
| Finance & Accounting flex | 27.9% | 27.6% |
| Government solutions flex | 24.5% | 25.0% |
Quote
“As we head into Q2 2018, we are experiencing continued strength in our Tech Flex business as companies continue to invest in technology to more effectively and efficiently meet the needs of their customers,” Chairman and CEO David Dunkel said. “Clients are continuing to look to a flexible human capital model to meet this demand, particularly given the project-based nature of technology.”
Guidance
Kforce forecast second-quarter revenue of $355 million to $360 million. Gross margin is expected to be between 30.0% to 30.2%.
Share price and market cap
Shares in Kforce rose 11.51% to $29.55 as of 1:27 p.m. Eastern time. The company had a market cap of $734.71 million.