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View All NewsKforce revenue rises 3% in Q1
Professional staffing firm Kforce Inc. (NASD: KFRC) reported first-quarter revenue rose 3.1% to $322.1 million, but fell short of guidance provided at the end of the fourth quarter.
The Tampa, Fla.-based professional staffing provider noted a few large clients slowed their usage of flexible staffing, but reported a gradual reacceleration of activity in in the first quarter.
| (US$ thousands) | Q1 2016 | Q1 2015 | % change |
| Revenue | $322,201 | $312,611 | 3.1% |
| Gross profit | $97,189 | $94,740 | 2.6% |
| Gross margin percentage | 30.2% | 30.3% | |
| Net income | $3,650 | $5,785 | -36.9% |
The US Department of Veterans Affairs in the first quarter awarded the company one of nine large business prime contract vehicles — known as “T4 Next Generation” — to directly support the VA in areas that include IT infrastructure improvements, cyber security, and operations and network management.
Also, Kforce recently announced that it appointed Ann Dunwoody as a board member. Dunwoody is the first woman to receive the rank of four-star general.
Quote
“The overall demand environment remains strong,” Chairman and CEO David Dunkel said. “We have begun to see a gradual reacceleration of activity in those few large clients that have slowed their usage of flexible staffing due to transactions, and conversations with representatives at these clients suggest a strong pipeline of projects.”
Revenue by function and segment
| (US$ thousands) | Q1 2016 | Q1 2015 | % change |
| Total flex revenue | $309,636 | $300,532 | 3.0% |
| Total direct-hire revenue | $12,565 | $12,079 | 4.0% |
| Technology | |||
| Technology flex revenue | $211,209 | $208,438 | 1.3% |
| Technology direct-hire revenue | $5,379 | $5,201 | 3.4% |
| Total technology revenue | $216,588 | $213,639 | 1.4% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $75,306 | $66,194 | 13.8% |
| Finance & Accounting direct-hire revenue | $7,186 | $6,878 | 4.5% |
| Total Finance & Accounting revenue | $82,492 | $73,072 | 12.9% |
| Government Solutions flex revenue | $23,121 | $25,900 | -10.7% |
Gross margin by segment
| Q1 2016 | Q1 2015 | |
| Technology flex | 26.7% | 26.4% |
| Finance & Accounting flex | 28.7% | 28.4% |
| Government solutions flex | 28.4% | 34.1% |
Guidance
Kforce expects first-quarter revenue of $332 million to $337 million.
Share price and market cap
Shares in Kforce fell 5.52% to $18.15 in early afternoon trading today; Kforce has a market cap of approximately $492.59 million, according to Yahoo.