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View All NewsRCM Technologies revenue falls 7%
RCM Technologies Inc. (NASD GM: RCMT) — a provider of engineering, IT and healthcare staffing — reported revenue fell 6.8% in the fourth quarter. Gross margin also narrowed.
RCM sold its QAD Software Solutions business unit, part of the company’s IT segment, on Dec. 31, 2015. The unit generated $800,000 in revenue in the fourth quarter of 2015.
The company also recorded charges in the 2016 fourth quarter of $1.3 million associated with a legal settlement and office closure. RCM settled a wage and hour class action lawsuit in December and incurred total expenses of $700,000, including professional fees. The balance is primarily related to facilities consolidation charges associated with the closure of an office in Grand Rapids, Mich.
| (US$ thousands) | Q4 2016 | Q4 2015 | % growth |
| Revenue | $44,198 | $47,407 | -6.8% |
| Gross profit | $12,106 | $13,690 | -11.6% |
| Gross profit margin | 27.4% | 28.9% | |
| Net loss/income | -$216 | $2,976 | nm |
Quote
“We believe that the foundation laid in 2016 will set RCM up for significantly improved operational performance in 2017, particularly as we progress throughout the year,” said President and CEO Rocco Campanelli
Full-year results
| (US$ thousands) | 2016 | 2015 | % growth |
| Revenue | $176,448 | $185,736 | -5.0% |
| Gross profit | $47,030 | $51,885 | -9.4% |
| Gross profit margin | 26.7% | 27.9% | -- |
| Net income | $1,758 | $6,015 | -70.8% |
Share price and market cap
Shares in RCM fell 5.61% to $5.54 in early afternoon trading today; RCM has a market cap of approximately $66.96 million, according to Yahoo.