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View All NewsKforce Q2 revenue falls 0.7%, gross margin improves
Kforce Inc. (NASD: KFRC) reported revenue fell 0.7% in the second quarter to $335.0 million. The decrease was in the company’s technology business. Second-quarter revenue rose in Kforce’s finance & accounting and government solutions segments.
Gross margin at the Tampa, Fla.-based professional staffing firm improved to 31.7% in the second quarter from 31.4% in the year-ago quarter, above the company’s top guidance of 31.6%. However, net income fell.
| (US$ thousands) | Q2 2016 | Q2 2015 | % change |
| Revenue | $335,047 | $337,353 | -0.7% |
| Gross profit | $106,282 | $106,038 | 0.2% |
| Gross margin percentage | 31.7% | 31.4% | |
| Net income | $10,864 | $11,593 | -6.3% |
Quote
“Earnings per share of $0.41 was slightly higher than the midpoint of our expectations,” Chairman and CEO David Dunkel said. “The overall demand environment in both tech and finance and accounting remains solid. Against an uncertain macro-economic backdrop, we continue to experience many secular drivers, particularly in our tech flex business.”
Revenue by function and segment
| (US$ thousands) | Q2 2016 | Q2 2015 | % change |
| Total flex revenue | $321,473 | $322,910 | -0.4% |
| Total direct-hire revenue | $13,574 | $14,443 | -6.0% |
| Technology | |||
| Technology flex revenue | $219,412 | $225,873 | -2.9% |
| Technology direct-hire revenue | $5,146 | $6,291 | -18.2% |
| Total technology revenue | $224,558 | $232,164 | -3.3% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $76,769 | $72,773 | 5.5% |
| Finance & Accounting direct-hire revenue | $8,428 | $8,152 | 3.4% |
| Total Finance & Accounting revenue | $85,197 | $80,925 | 5.3% |
| Government Solutions flex revenue | $25,292 | $24,264 | 4.2% |
Gross margin by segment
| Q2 2016 | Q2 2015 | |
| Technology flex | 27.8% | 27.6% |
| Finance & Accounting flex | 30.0% | 29.8% |
| Government solutions flex | 34.3% | 31.2% |
Guidance
Kforce forecast third-quarter revenue of between $335 million and $339 million, a year-over-year decrease of between 0.8% and 1.9%.
Share price and market cap
Kforce shares fell 5.09% in early afternoon trading to $17.06. The company had a market cap of $447.76 million, according to Yahoo!