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View All NewsResources Connection revenue up 22% in constant currency
Professional staffing provider Resources Connection Inc. (NASD: RECN), which operates as Resources Global Professionals, reported revenue rose 21.8% in constant currency, in its fiscal fourth quarter ended May 26. The increase at the Irvine, Calif.-based firm was 7.3% on both a constant currency and organic basis when excluding revenue from last September’s acquisitions of Chicago-based Accretive Solutions Inc. and a German professional services firm called “taskforce - Management on Demand AG.”
| (US$ thousands) | Q4 2018 | Q4 2017 | % change | % change consant currency |
| Revenue | $183,791 | $148,620 | 23.7% | 21.8% |
| Gross margin | $70,428 | $58,041 | 21.3% | |
| Gross margin percentage | 38.3% | 39.1% | ||
| Net income | $3,981 | $4,437 | -10.3% |
US revenue rose 5.2% year over year on an organic basis.
European revenue was up 22.1% when excluding acquisitions; the increase was 11.1% in constant currency.
Asia-Pacific revenue rose 8.4% in constant currency, or 12.8% on a reported basis.
The fourth quarter includes approximately $3.8 million related to severance, acquisition, transformation and integration costs, as well as $7.2 million of Accretive and taskforce general and administrative expense.
Quote
“The first quarter to date is also trending strongly compared to the first quarter of fiscal 2018 as we believe our strategic initiatives are having a positive impact on our business,” President and CEO Kate Duchene said. “In addition, our recent acquisitions have opened up significant new opportunities that we would not have won as standalone companies.”
Full-year results
| (US$ thousands) | FY 2018 | FY 2017 | % change | % change organic | % change organic and constant currency |
| Revenue | $654,129 | $583,411 | 12.1% | 4.1% | 3.1% |
| Gross margin | $246,055 | $221,325 | 11.2% | ||
| Gross margin percentage | 37.6% | 37.9% | |||
| Net income | $18,826 | $18,651 | 0.9% |
Share price and market cap
Shares in Resources Connection fell 12.39% to $15.02 as of 1:15 p.m. Eastern time today. The company had a market cap of $473.52 million.