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View All NewsVolt revenue falls 8% in fiscal Q4, but gross margin percentage edges up
Volt Information Sciences Inc. (NYSE MKT: VISI) reported net revenue fell 8.2% in its fiscal fourth quarter ended Oct. 28. However, net revenue fell only 2.8% when excluding revenue from businesses sold or exited in the past year as well as the effect of currency fluctuations.
The company reported a loss of $2.9 million, compared with net income of $38.1 million in the fourth quarter of fiscal 2017; however, the year-ago quarter benefited by a gain on the sale of the company’s quality assurance testing business, known as VMC, totaling $48.0 million.
The New York-based firm also reported $4.5 million in restructuring and severance costs during the quarter, up from $307,000 reported for the fiscal fourth quarter in 2017.
| (US$ thousands) | Q4 2018 | Q4 2017 | % change |
| Net revenue | $264,805 | $288,483 | -8.2% |
| Gross margin | $44,008 | $47,667 | -7.7% |
| Gross margin percentage | 16.6% | 16.5% | |
| Net loss | ($2,886) | $38,081 | nm |
Segment revenue
| (US$ thousands) | Q4 2018 | Q4 2017 | % change |
| North American staffing | $220,540 | $224,219 | -1.6% |
| International staffing | $27,289 | $30,163 | -9.5% |
| North American MSP | $8,208 | $9,423 | -12.9% |
| Corporate and other | $9,708 | $26,585 | -63.5% |
| Eliminations | ($940) | ($1,907) |
Volt in November announced it concluded its previously announced evaluation of strategic alternatives, which included the potential sale of the company, and its board agreed to continue executing on the company’s strategic plan. Volt’s board also appointed Linda Perneau as president and CEO, and a board member, effective Nov. 7.
Quote
“During the last month of fiscal 2018, we generated year-over-year positive revenue growth in our North American staffing segment for the first time in many years,” Perneau said. “So far in the first quarter of fiscal 2019, that trend is continuing.”
Full-year results
| (US$ thousands) | 2018 | 2017 | % growth |
| Net revenue | $1,039,170 | $1,194,436 | -13.0% |
| Gross margin | $153,678 | $187,395 | -18.0% |
| Gross margin percentage | 14.8% | 15.7% | |
| Net income/loss | ($32,685) | $27,132 | nm |
Share price and market cap
Volt shares were up 6.12% to $3.07 at 2:08 p.m. Eastern time; the company had a market cap of $61.21 million, according to FT.com.