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View All NewsRCM Technologies revenue up in Q2 but gross margin narrows
RCM Technologies Inc. (NASD: RCMT) revenue rose 13.6% in the second quarter. However, gross profit margin narrowed at the Pennsauken, NJ-based provider of engineering, healthcare and IT staffing.
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| Revenue | $51,710 | $45,512 | 13.6% |
| Gross profit | $12,735 | $12,113 | 5.1% |
| Gross profit margin | 24.6% | 26.6% | |
| Net income | $381 | $189 | 101.6% |
The company reported $1.4 million in severance, professional fees and other charges for the second quarter. These charges included severance accrued for RCM Technologies’ former CEO and related payroll taxes, continuation of certain benefits and professional fees, totaling approximately $900,000. In addition, $500,000 was spent defending a lawsuit by a competitor and search fees for hiring a senior executive.
Revenue by segment
| (US$ thousands) | Q2 2018 | Q2 2017 | % change |
| Engineering | $21,571 | $20,586 | 4.8% |
| Specialty Healthcare | $22,858 | $16,369 | 39.6% |
| Information Technology | $7,281 | $8,557 | -14.9% |
Share price and market cap
Shares in RCM rose 1.46% to $4.85 in trading at 12:50 p.m. Eastern time today. The company had a market cap of $59.36 million.