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CDI Revenue Rises 20%

July 28 2011

CDI Corp. (NYSE:CDI) reported revenue rose 20.0 percent in the second quarter ended June 30 to $262.7 million. Excluding revenue of $13.4 million from its June 2010 acquisition of L.R. Kimball, revenue rose 14.2 percent year over year.

“CDI continues to perform well in a still-fluid economic environment and our second-quarter and first-half 2011 revenue performance reflects the underlying strength of our core business,” said Paulett Eberhart, president and CEO. “Although my optimism is still somewhat tempered by continuing softness in government-related sectors, I am pleased that our businesses are starting to generate increased momentum.”

Gross margin improved to 21.7 percent in the first quarter from 20.4 percent in the year-ago quarter.

Net income jumped to $12.0 million in the quarter from $2.6 million a year ago. The company reported 2011 pre-tax earnings include a benefit of $9.7 million from an appeal of the level of a fine imposed in September 2009 by the United Kingdom’s Office of Fair Trading.

Second-quarter revenue rose in all segments except for U.K.-based AndersElite, reflecting the continued impact of a weak U.K. construction market and contraction in Anders’ transportation sector. Second-quarter, year-over-year revenue for the segments:

* Engineering solutions, up 27.1 percent to $140.1 million (up 15.7 percent excluding L.R. Kimball)
* Management Recruiters International, up 15.2 percent to $17.4 million
* IT solutions, up 18.2 percent to $90.7 million
* AndersElite, down 14.5 percent to $14.5 million

CDI expects second quarter revenue to rise between 7 percent and 9 percent over the 2010 third quarter.

For the first quarter ended June 30, 2011, compared with the same period in 2010.
Revenue: $262.7 million, +20.0 percent
Net income: $12.0 million vs. net income of $2.6 million


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