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View All NewsRevenue falls 9% at GEE Group in fiscal Q2
Revenue fell 9.2% at staffing provider GEE Group Inc. (NYSEAMERICAN: JOB) in its fiscal second quarter ended March 31, according to a filing today with the US Securities and Exchange Commission. Net margin narrowed, and net loss increased. The Jacksonville, Florida-based company provides staffing in IT, engineering and accounting as well as staffing of specialists in electronic medical records.
| (US$ thousands) | Q2 2019 | Q2 2018 | % change |
| Net revenue | $36,177 | $39,857 | -9.2% |
| Gross profit | $11,718 | $13,626 | -14.0% |
| Gross margin | 32.4% | 34.2% | |
| Net loss | ($3,890) | ($2,878) | nm |
Revenue fell in both its contract staffing services and direct-hire segments.
Revenue by segment
| (US$ thousands) | Q2 2019 | Q2 2018 | % change |
| Contract staffing services | $31,827 | $34,520 | -7.8% |
| Direct hire placement services | $4,350 | $5,337 | -18.5% |
GEE Group noted that contract staffing revenue fell primarily because of reductions in temporary workforce requirements at a few key customers.
Quote
“The company continues to focus on internal growth and increasing market share through targeted sales and marketing efforts directed to existing and new customers,” Chairman and CEO Derek Dewa said in a statement.
Share price and market cap
Shares in GEE Group were down 0.92% to $1.07 as of 10:10 a.m. Eastern time; the company had a market cap of $12.7 million, according to FT.com.