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CDI Fourth Quarter Revenue Up 14%

February 22 2011

CDI Corp. (NYSE: CDI) reported today revenue rose 14.2 percent in the fourth quarter ended Dec. 31, 2010, due in part to an acquisition made in the second quarter. In constant currency, revenue rose 14.6 percent.

"I am pleased to report solid year-over-year fourth-quarter revenue growth, which reflects the strength of the company's fundamentals. CDI has an underlying business capable of delivering continued growth in what appears to be an improving economic environment," said Paulett Eberhart, president and CEO.

CDI reported revenue of $248.0 million in the fourth quarter, up from $217.2 million in the 2009 fourth quarter. Contributing $13 million in revenue was L.R. Kimball, which CDI acquired in June. Excluding the L.R. Kimball earnings, CDI's revenue rose 8.2 percent (8.6 percent in constant currency).

Gross margin was 21.1 percent in the fourth quarter, up from 18.9 percent in the closing quarter of 2009.

Net loss in the fourth quarter was $14.6 million, due in part to an $8.0 million goodwill write-down in the AndersElite segment. Net loss in the fourth quarter of 2009 was $6.9 million.

CDI's engineering solutions segment contributed $129.6 million in fourth-quarter revenue, up 12.8 percent from the fourth quarter of 2009. (Excluding the results of the L.R. Kimball business unit, the segment grew 1.5 percent.) Management Recruiters International posted $15.8 million in revenue (+15.6 percent). The IT solutions segment contributed $89.6 million in fourth-quarter revenue (+36.9 percent). The only segment to decline year-over-year was U.K.-based AndersElite, due to declines in contract staffing. AndersElite's revenue was $13.0 million (-12.8 percent).

Revenue rose 4.7 percent for the full year ended Dec. 31, 2010 to $926.3 million. Gross margin was 20.9 percent, up from 20.0 percent in 2009.

The company's net loss was $10.5 million, compared with a loss of $19.9 million the year prior.

Looking forward, the company said it expects revenue to increase by 15 percent to 18 percent year-over-year in the first quarter ending March 31. Excluding the contributions of L.R. Kimball, the growth is expected to be 9 percent to 12 percent.

CDI Corp. (NYSE: CDI)
For the fourth quarter ended Dec. 31, 2010, compared with the same period in 2009.
Revenue: $248.0 million, +14.2 percent
Net loss: $14.6 million, vs. a net loss of $6.9 million
 
For the full year ended Dec. 31, 2010, compared with the previous year.
Revenue: $926.3 million, +4.7 percent
Net loss: $10.5 million vs. a net loss of $19.9 million

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