Volt Information Sciences Inc. (NYSE MKT: VISI) reported net revenue fell 11.1% in its fiscal third quarter ended July 29. On a same-store and constant currency basis, net revenue fell 6.6% year over year, excluding net revenue contributed from businesses sold or exited during the past year.

Gross margin narrowed to 14.1% from 15.8%, and net loss increased.

The New York-based firm also reported $3.1 million in restructuring and severance costs during the quarter.

Volt last month added two executives to Volt Workforce Solutions: Lori Schultz as COO and Lauren Griffin as senior VP, specialty solutions group. Both women come to the firm from Adecco and will join Volt’s senior leadership team.

In July, Volt formed a strategic solutions group and a global solutions group; in June, the company announced it was evaluating potential strategic alternatives and President and CEO Michael Dean left the company; Linda Perneau took over as interim CEO.

Quote

“I see significant opportunities to enhance Volt’s competitive position within the staffing industry and improve performance to levels of which we can be proud,” Perneau said. “Key to achieving this will be returning our largest business, Volt Workforce Solutions, to a trajectory of profitable growth.”

Perneau continued, “To address the challenges, our leadership team is currently focused on four strategic priorities of organization design, business optimization, delivery excellence, and growth and expansion.”

Segment revenue

• North America staffing services revenue fell 6.0% from the year-ago quarter, driven by lower demand from customers in the professional and administrative and office job categories, partially offset by growth in the light industrial and engineering job categories.
• International staffing services revenue — which includes the company’s contingent staffing, direct placement and managed programs business in Europe and Asia — edged down 1.5%. Third-quarter revenue fell 1.8% on a constant currency basis (and when excluding an $800,000 decrease related to an exited business) primarily due to lower demand in the United Kingdom, offset by strong growth in Belgium.
• “Corporate and other revenue,” which primarily consists of the company’s North American managed service business and its call center business, fell 56.8%, primarily due to the impact of the $66 million sale of its quality assurance testing business, which occurred at the end of the fourth quarter of fiscal 2017. On a same-store basis, excluding businesses sold or exited, the decline was 25.2% year over year, as a result of winding down of certain customer programs in the company’s managed service business as well as normal fluctuations in call center activity.

Share price and market cap

Shares in Volt fell 8.20% to $2.80 as of 1:16 p.m. Eastern time today. The company had a market cap of $58.9 million.