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View All NewsCDI revenue up 8%
CDI Corp. (NYSE: CDI), a Philadelphia-based engineering and technology staffing and solutions provider, reported second-quarter revenue rose 7.9 percent year over year to $284.3 million. However, gross margin narrowed to 18.6 percent from 19.6 percent in the year-ago quarter.
Net income rose 27.3 percent in the second quarter to $4.4 million.
CDI ranks as the sixth-largest U.S. engineering staffing firm and 16th-largest U.S. information technology staffing firm.
Quote
“We are pleased with our second-quarter revenue growth, including gains in all of our business segments. Strong demand and market share increases in our [oil, gas and chemicals] and [aerospace and industrial equipment] operations allowed us to more than offset continuing revenue challenges in our government-related businesses and with our largest customer,” said President and CFO Robert Larney, who is serving as interim CEO. “Operating profit rose 33 percent during the quarter due to volume increases and prudent expense management. Our continuing focus is to improve operating profit margins throughout our businesses.”
Revenue
| Q2 2014 ($000s) | Q2 2013 ($000s) | % growth | |
| Revenue | $284,282 | $263,363 | 7.9% |
Revenue by segment
| Q2 2014 ($000s) | Q2 2013 ($000s) | % growth | |
| Global Engineering and Technology Solutions | |||
| Oil, gas and chemicals | $34,725 | $30,136 | 15.2% |
| Aerospace and industrial equipment | $19,807 | $18,514 | 7.0% |
| Hi-Tech | $8,108 | $7,524 | 7.8% |
| Other | $21,648 | $23,777 | -9.0% |
| Professional Staffing Services | |||
| Oil, gas and chemicals | $44,417 | $27,021 | 64.4% |
| Aerospace and industrial equipment | $20,583 | $19,363 | 6.3% |
| Hi-Tech | $59,895 | $71,457 | -16.2% |
| Other | $59,835 | $50,918 | 17.5% |
| Management Recruiters International | |||
| Contract staffing | $11,808 | $11,208 | 5.4% |
| Royalties and franchise fees | $3,456 | $3,445 | 0.3% |
Gross margin
| Q2 2014 | Q2 2013 | |
| Gross margin | 18.6% | 19.6% |
Gross margin by segment
| Q2 2014 | Q2 2013 | |
| Global Engineering and Technology Solutions | 27.1% | 28.5% |
| Professional Services Staffing | 12.3% | 13.0% |
| Management Recruiters International | 47.1% | 47.2% |
Net income
| Q2 2014 ($000s) | Q2 2013 ($000s) | % growth | |
| Net income | $4,452 | $3,497 | 27.3% |
Guidance
CDI expects third-quarter revenue in the range of $286 million to $296 million, compared to $277.9 million in the same period last year.
Share price and market cap
Shares in CDI fell 3.93 percent to $13.53 in early afternoon trading today and CDI has a market cap of approximately $264.30 million, according to Yahoo!