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View All NewsKforce reports first-quarter revenue up 4%
Kforce Inc. (NASD: KFRC) reported first-quarter revenue rose 3.7%. The most significant driver to this was an acceleration in total flexible staffing revenue growth, which improved to 4% year over year.
Gross margin at the Tampa, Fla.-based professional staffing firm narrowed to 29.1% from 30.2% in the year-ago quarter; however, lower-than-anticipated gross margins were offset by lower operating costs, the company reported in a conference call with analysts.
| (US$ thousands) | Q1 2017 | Q1 2016 | % change |
| Revenue | $333,992 | $322,201 | 3.7% |
| Gross profit | $97,135 | $97,189 | -0.1% |
| Gross margin percentage | 29.1% | 30.2% | |
| Net income | $5,902 | $3,650 | 61.7% |
“Heading into the first quarter, we saw a domestic market that was still absorbing the surprising results of the presidential election and potential policy implications,” Chairman and CEO David Dunkel said in a conference call with analysts. “During the quarter, there has been much speculation and discussion around key policy initiatives, including corporate tax reform, healthcare, immigration and financial regulation. While there are still great uncertainty as to the details and impact of the potential reform, the secular drivers of technology projects continue to fuel demand.”
Revenue by function and segment
| (US$ thousands) | Q1 2017 | Q1 2016 | % change |
| Total flex revenue | $322,487 | $309,636 | 4.2% |
| Total direct-hire revenue | $11,505 | $12,565 | -8.4% |
| Technology | |||
| Technology flex revenue | $216,886 | $211,209 | 2.7% |
| Technology direct-hire revenue | $5,159 | $5,379 | -4.1% |
| Total technology revenue | $222,045 | $216,588 | 2.5% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $80,949 | $75,306 | 7.5% |
| Finance & Accounting direct-hire revenue | $6,346 | $7,186 | -11.7% |
| Total Finance & Accounting revenue | $87,295 | $82,492 | 5.8% |
| Government Solutions flex revenue | $24,652 | $23,121 | 6.6% |
Gross margin by segment
| Q1 2017 | Q1 2016 | |
| Technology flex | 25.8% | 26.7% |
| Finance & Accounting flex | 27.6% | 28.7% |
| Government solutions flex | 29.9% | 28.4% |
Guidance
Kforce forecast second-quarter revenue of $342 million to $347 million. Gross margins are expected to be between 30.2% and 30.4%.
Share price and market cap
Kforce shares fell 8.11% in early afternoon trading today to $20.40. The company had a market cap of $512.08 million, according to Yahoo.