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View All NewsVolt revenue falls 11% on an adjusted basis; CEO cites progress
Net revenue fell 11.0% on an adjusted basis at Volt Information Sciences Inc. (NYSEAMERICAN: VOLT) in its fiscal fourth quarter ended Nov. 1. Adjusted revenue excludes businesses exited, the effect of foreign currency translation and the extra operating week in the fourth quarter of fiscal 2019. President and CEO Linda Perneau cited sequential improvement and the company made progress despite facing the most challenging period in its 70-year history.
“The disruption caused by Covid-19 forced us to think and work differently while ensuring we were able to provide a consistent level of world-class service to our clients, many of whom are essential businesses,” Perneau said. “At the same time, we successfully expanded our relationships with existing customers and secured new business.”
| (US$ thousands) | Q4 2020 | Q4 2019 | % change | % change on adjusted basis |
| Net revenue | $211,073 | $258,408 | -18.3% | -11.0% |
| Gross margin | $34,229 | $42,959 | -20.3% | |
| Gross margin percentage | 16.2% | 16.6% | ||
| Net loss | ($12,517) | ($749) | nm |
Volt’s 2019 fourth quarter had an extra week.
Separately, the Orange, California-based firm also recorded an impairment charge of $14.5 million in the fourth quarter of 2020.
Net revenue by segment
| (US$ thousands) | Q4 2020 | Q4 2019 | % change |
| North American staffing | $178,603 | $216,587 | -17.5% |
| International staffing | $23,033 | $30,574 | -24.7% |
| North American MSP | $9,365 | $11,659 | -19.7% |
North American staffing revenue at Volt fell amid Covid-19, although business wins and new clients partially offset the lost revenue, the company said. The decline in North American MSP revenue was also primarily because of Covid-19’s negative impact.
Volt noted the decrease in international staffing revenue was mainly attributable to lower results within the UK.
Full-year results
| (US$ thousands) | FY 2020 | FY 2019 | % change | % change on adjusted basis |
| Net revenue | $822,055 | $997,090 | -17.6% | -13.4% |
| Gross margin | $127,851 | $152,563 | -16.2% | |
| Gross margin percentage | 15.6% | 15.3% | ||
| Net loss | ($33,587) | ($15,186) | nm |
Share price and market cap
Shares in Volt had set a new 52-week high Wednesday when they traded at $3.30; FT.com reported. The company had a market cap of $71.2 million.
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