Volt Information Sciences Inc. (NYSEAMERICAN: VISI) reported revenue decreased by 20.3% in its fiscal third quarter ended Aug. 2.

Revenue for the New York-based company was down by 18.4% when compared to the same period last year on an adjusted basis, which excludes exited businesses, the effect of foreign currency translation and the extra operating week in the fourth quarter of fiscal 2019.

Gross margin stood at 16.1%, an 80-basis point improvement from the prior-year quarter. The increase was attributable to a decrease in payroll tax rates and a credit related to Volt’s workers’ compensation costs versus the prior year.

Volt reported net loss narrowed to $4.8 million in the third quarter compared to a loss of $6.1 million in the year-ago quarter. The group reported less SG&A expenses compared to the prior-year quarter. The decrease is primarily due to substantial cost reductions taken throughout the year and the impact of working remotely as well as Covid-19 restrictions on travel.

Volt incurred impairment and restructuring charges of $2.9 million in the third quarter as a part of its ongoing real estate rationalization and cost savings initiatives. These charges were primarily the result of consolidating and exiting certain leased office locations throughout North America based on where Volt can be fully operational and successfully support its clients and business operations remotely.

Net revenue by segment

North American staffing revenue for the quarter fell by 20.1% in the third quarter. Adjusted revenue for this segment decreased approximately 18.6% year over year. The decrease is primarily attributable to client facility closures and reduced demand associated with Covid-19, partially offset by business wins with new and existing clients.

Quote

“I remain incredibly proud of our Volt colleagues, all of whom continue to confidently navigate the prolonged economic and health uncertainty,” said President and CEO Linda Perneau. “Their efforts allowed us to safely return thousands of employees back to work, enabled multiple clients to resume full operations, and secured new business wins, partially offsetting pandemic related declines.”

Outlook

Due to the continued uncertainty surrounding the timing of reopening specific geographies, the company is not providing adjusted revenue guidance for the fourth quarter of fiscal 2020.

Share price and market cap

Shares in Volt were down 6.99% to $1.14 as of 8.07 a.m. Eastern time; the company had a market cap of $26.25 million, according to FT.com.