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View All NewsRCM Technologies revenue up 10% in Q1, gross profit margin narrows
RCM Technologies Inc. (NASD: RCMT) revenue rose 9.6% in the first quarter. However, gross profit margin narrowed at the Pennsauken, NJ-based provider of engineering, healthcare and IT staffing.
| (US$ thousands) | Q1 2018 | Q1 2017 | % change |
| Revenue | $50,812 | $46,341 | 9.6% |
| Gross profit | $12,555 | $11,752 | 6.8% |
| Gross profit margin | 24.7% | 25.4% | |
| Net income | $1,051 | $550 | 91.1% |
Quote
“Our first-quarter growth in gross profit and operating income really illustrates the potential operating leverage at RCM,” CFO Kevin Miller said. “We expect to improve these results in the second quarter and beyond. However, we did experience several discrete but fixable issues in collecting our accounts receivables. We expect our ratio of accounts receivables to quarterly revenues in the second quarter to rebound to levels we experienced in fiscal 2017 and to continue to improve throughout fiscal 2018.”
Revenue by segment
| (US$ thousands) | Q1 2018 | Q1 2017 | % change |
| Engineering | $21,418 | $19,224 | 11.4% |
| Specialty Healthcare | $22,634 | $18,507 | 22.3% |
| Information Technology | $6,760 | $8,610 | -21.5% |
Share price and market cap
Shares in RCM were up 5.4% to $4.95 in trading at 1 p.m. Eastern time today. The company had a market cap of $64.5 million.