Resources Connection Inc. (NASD: RECN) reported revenue fell 2.6% year over year, or 1.6% in constant currency, to $148.6 million in its fiscal fourth quarter ended May 27.

Fourth-quarter US revenue fell 3.8%, primarily affected by ongoing weakness in the Tri-State area. International revenue rose 3.0% year over year, or 8.1% in constant currency. Revenue increased 4.5% in Europe and 3.6% in the Asia-Pacific region.

Gross margin edged down from the year-ago quarter, which the company attributed to an unfavorable change in the bill rate/pay rate ratio and an increase in costs related to its self-insured medical program.

Irvine, Calif.-based Resources Connection ranks No. 29 on the list of largest US staffing firms, and its largest segments served include finance/accounting and IT.

The company is implementing strategic initiatives to contain costs and drive revenue growth, and the fourth quarter includes a charge of approximately $2.4 million mainly related to severance expenses and office consolidations. It also began updating management techniques and made leadership changes in five underperforming markets in North America.

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“Having made significant changes, I believe we are on the right path, and we expect to see a positive financial impact in fiscal year 2018,” said President and CEO Kate Duchene. “Overall, we had a solid year in certain markets and a down year in others. We are pleased by the strong international performance, although it is clear we still have work to do in North America.”

Full-year results

Share price and market cap

Shares in Resources Connection fell 4.95% in early afternoon trading today to $13.93, and the company had a market cap of $412.9 million, according to Yahoo.