Daily News
View All NewsRCM Technologies revenue down 2% in Q2
August 08, 2019
RCM Technologies Inc. (NASDAQ: RCMT) reported second-quarter revenue fell 1.9%, although gross margin improved at the Pennsauken, New Jersey-based staffing provider.
The results include $900,000 in severance, continuation of benefits and professional fees in the severance of its former CEO. Results also include $500,000 in expenses related to defending a lawsuit by a competitor that the company described as “frivolous.”
| (US$ thousands) | Q2 2019 | Q2 2018 | % change |
| Revenue | $50,705 | $51,710 | -1.9% |
| Gross profit | $12,803 | $12,735 | 0.5% |
| Gross profit margin | 25.2% | 24.6% | |
| Net income | $1,251 | $381 | 228.3% |
Revenue fell in its engineering segment but rose in its specialty healthcare and IT business lines.
Revenue by segment
| (US$ thousands) | Q2 2019 | Q2 2018 | % change |
| Engineering | $18,583 | $21,571 | -13.9% |
| Specialty healthcare | $23,370 | $22,858 | 2.2% |
| Information technology | $8,752 | $7,281 | 20.2% |
Share price and market cap
Shares in RCM were up 6.32% to $3.32 as of 11:35 a.m. Eastern time; the company had a market cap of $39.8 million, according to FT.com.