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View All NewsVolt revenue falls in fiscal Q2, Volt Workforce Solutions president resigns
Volt Information Sciences Inc. (NYSE MKT: VISI) reported net revenue fell 9.7% in its fiscal second quarter ended April 30. The company said that on a same-store basis, excluding net revenue contributed from businesses sold or exited during the past year and the effect of currency fluctuations, net revenue fell 5.6%.
The New York-based IT and engineering staffing and MSP provider reported net loss narrowed to $854,000 from almost $1.8 million; the second quarter included $199,000 in restructuring and severance costs compared to $840,000 in the year-ago quarter.
Volt also announced Jorge Perez resigned as president of Volt Workforce Solutions, effective immediately. President and CEO Michael Dean will assume the role on an interim basis. The company has commenced a search for his permanent replacement.
| (US$ thousands) | Q2 2017 | Q2 2016 | % growth |
| Net revenue | $303,005 | $335,576 | -9.7% |
| Gross margin | $47,119 | $51,472 | -8.5% |
| Gross margin percentage | 15.6% | 15.3% | |
| Net loss | -$854 | -$1,785 | nm |
North America staffing services revenue fell 6.8% from the year-ago quarter. International staffing services revenue — which includes the company’s contingent staffing, direct placement and managed programs businesses in Europe and Asia — fell 9.1%. However, international staffing revenue edged up 0.9% on a constant currency basis.
Segment revenue
| (US$ thousands) | Q2 2017 | Q2 2016 | % growth |
| North American staffing | $233,804 | $250,881 | -6.8% |
| International staffing | $30,231 | $33,250 | -9.1% |
| Technology Outsourcing Services and Solutions | $24,499 | $24,981 | -1.9% |
| Corporate and other | $16,033 | $29,590 | -45.8% |
The company received an IRS federal income tax refund of $13.8 million in the second quarter. And on March 6 it completed the sale of Maintech Inc., its IT infrastructure support business, to Maintech Holdings LLC, a newly-formed holding company and affiliate of Oak Lane Partners LLC, for $18.3 million in cash. Volt also deployed new information technology systems enterprisewide in North America in the quarter to improve time to market.
Quote
“While the completion of large projects with several customers impacted second-quarter revenue growth, we added to our book of business with important new client relationships established in the quarter, and grew our pipeline of new opportunities as we look ahead to the second half of fiscal 2017,” Dean said. “Based on our steady progress, I remain highly confident in our ability to return Volt to sustained profitable growth.”
Share price and market cap
Shares in Volt fell 3.88% in late morning trading today to $5.57, and Volt had a market cap of approximately $116.6 million, according to Yahoo.