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View All NewsRCM Technologies reports revenue down 37% in Q2
August 11, 2020
Second-quarter revenue fell 35.6% at RCM Technologies Inc. (NASDAQ: RCMT) amid the Covid-19 pandemic. Still, gross margin improved at the Pennsauken, New Jersey-based staffing firm.
“We believe that RCM performed well against our Covid plan that we outlined in May,” Executive Chairman Bradley Vizi said in a statement. “We outlined a plan where we would surgically cut non-critical SGA expenses and focus heavily on utilization and gross margin, while at the same time working to maximize cash flow from operations.”
| (US$ thousands) | Q2 2020 | Q2 2019 | % change |
| Revenue | $32,652 | $50,705 | -35.6% |
| Gross profit | $8,503 | $12,803 | -33.6% |
| Gross profit margin | 26.0% | 25.2% | |
| Net loss/income | ($992) | $1,251 | nm |
The biggest decline was in RCM’s specialty healthcare segment.
Revenue by segment
| (US$ thousands) | Q2 2020 | Q2 2019 | % change |
| Engineering | $14,038 | $18,583 | -24.5% |
| Specialty healthcare | $10,684 | $23,370 | -54.3% |
| Information technology | $7,930 | $8,752 | -9.4% |
Share price and market cap
Shares in RCM were down 5.63% to $1.51 as of 11:24 a.m. Eastern time, but they were 48.04% above their 52-week low. The company had a market cap of $21.0 million.