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View All NewsKforce second-quarter revenue edges up but short of expectations
Kforce Inc. (NASD: KFRC) reported second-quarter revenue edged up 1.6%, short of the firm’s expectations. Of the firm’s 10 industry verticals, six posted year over year growth; communication, manufacturing, retail and energy were particularly strong, the company said in a conference call with analysts.
| (US$ thousands) | Q2 2017 | Q2 2016 | % change |
| Revenue | $340,309 | $335,047 | 1.6% |
| Gross profit | $103,919 | $106,282 | -2.2% |
| Gross margin percentage | 30.5% | 31.7% | |
| Net income | $11,144 | $10,864 | 2.6% |
Quote
“Over the last 18 months, we’ve been executing a strategic plan to refine our operating structure, rebalance our revenue-generating talent, and make prudent and necessary investments to improve our sales efforts and enable our associates with new technology, including a new CRM system,” Chairman and CEO David Dunkel said in a conference call with analysts. “These efforts are not yet complete. And with regard to our sales transformation investments, the anticipated return on investment is taking longer than we had originally anticipated.”
Revenue by function and segment
| (US$ thousands) | Q2 2017 | Q2 2016 | % change |
| Total flex revenue | $326,456 | $321,473 | 1.6% |
| Total direct-hire revenue | $13,853 | $13,574 | 2.1% |
| Technology | |||
| Technology flex revenue | $222,744 | $219,413 | 1.5% |
| Technology direct-hire revenue | $5,625 | $5,146 | 9.3% |
| Total technology revenue | $228,369 | $224,558 | 1.7% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $80,038 | $76,769 | 4.3% |
| Finance & Accounting direct-hire revenue | $8,228 | $8,428 | -2.4% |
| Total Finance & Accounting revenue | $88,266 | $85,197 | 3.6% |
| Government Solutions flex revenue | $23,674 | $25,292 | -6.4% |
Gross margin by segment
| Q2 2017 | Q2 2016 | |
| Technology flex | 26.9% | 27.8% |
| Finance & Accounting flex | 28.8% | 30.0% |
| Government solutions flex | 29.8% | 34.3% |
Guidance
Kforce forecast third-quarter revenue of $338 million to $343 million. Gross margins are expected to be between 30.5% to 30.7%.
Share price and market cap
Kforce shares fell 6.04% in early afternoon trading today to $17.90. The company had a market cap of $451.689 million, according to Yahoo.