Daily News
View All NewsRCM Technologies revenue falls 3% due to decline in engineering
RCM Technologies Inc. (NASD: RCMT) revenue fell 2.9% in the third quarter. A decline in engineering staffing revenue — the Pennsauken, NJ-based staffing provider’s largest segment — offset gains in its healthcare and IT staffing segments.
Gross profit margin also narrowed and net income fell.
| (US$ thousands) | Q3 2018 | Q3 2017 | % change |
| Revenue | $42,559 | $43,827 | -2.9% |
| Gross profit | $10,988 | $11,718 | -6.2% |
| Gross profit margin | 25.8% | 26.7% | |
| Net income | $684 | $1,020 | -32.9% |
Quote
“Though third-quarter operating income came in at the low end of our expectation, as the result of project timing within Engineering Services, we believe that we are well positioned to deliver a strong finish to the year and enter 2019 with momentum,” Executive Chairman Bradley Vizi said. “On a year-to-date basis, our 2018 adjusted EBITDA of $6.4 million exceeds 2017 by a robust 16%.”
Revenue by segment
| (US$ thousands) | Q3 2018 | Q3 2017 | % change |
| Engineering | $19,424 | $21,708 | -10.5% |
| Specialty Healthcare | $15,106 | $14,335 | 5.4% |
| Information Technology | $8,029 | $7,784 | 3.1% |
Share price and market cap
RCM shares were down 7.94% to $4.16 at 12:52 p.m. Eastern time; the company had a market cap of $55.53 million, according to FT.com.