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View All NewsResources Connection revenue up 20%, chief accounting officer to retire
Professional staffing provider Resources Connection Inc. (NASD: RECN), which operates as Resources Global Professionals, reported revenue rose 20.5% in its fiscal second quarter ended Nov. 24. The increase was 21.3% in constant currency.
The company also announced the planned retirement of its chief accounting officer, John Bower, during the fourth quarter of fiscal 2019. Bower has been with the company in various financial roles since 1998. Resources Connection has commenced a search for a senior VP of finance position.
| (US$ thousands) | Q2 2019 | Q2 2018 | % change |
| Revenue | $188,799 | $156,738 | 20.5% |
| Gross margin | $73,421 | $59,419 | 23.6% |
| Gross margin percentage | 38.9% | 37.9% | |
| Net income | $10,564 | $8,138 | 29.8% |
The second-quarter results include revenue from Chicago-based Accretive Solutions Inc., which was acquired by Resources Connection in December 2017 and fully integrated into the firm at the start of fiscal 2019. Revenue also includes the 2017 acquisition of German professional services firm called “taskforce - Management on Demand AG.”
Revenue by geography
| (US$ thousands) | Q2 2019 | Q2 2018 | % change | % change constant currency |
| United States | $148,901 | $119,443 | 24.7% | |
| North America | $153,823 | $122,458 | 25.6% | 25.8% |
| Europe | $23,163 | $22,961 | 0.9% | 4.2% |
| Asia Pacific | $11,813 | $11,319 | 4.4% | 7.4% |
Share price and market cap
Resources Connection shares were up 15.0% to $15.64 at 12:28 p.m. Eastern time; the company had a market cap of $439.4 million, according to FT.com.