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ClearPoint revenue shrinks amid transition

April 21 2009

ClearPoint Business Services (OTCBB: CPBR.OB) posted fourth-quarter revenue of almost $2.8 million, down 94.7% from $52.0 million in the year-ago quarter as it transitions its business from providing staffing services to a staffing franchisor and operator its iLabor system, according to a filing with the U.S. Securities and Exchange Commission. However, the company's independent auditor cited concerns about the company's ability to continue as a going concern citing losses from operations, accumulated deficit and inability generate sufficient cash flow.

The Chalfont PA-based company's posted a net loss of $572,000 for the quarter, compared with a net loss of $6.0 million in the same period a year ago.

Gross margin, however, increased to 50.4% from 10.4% in the year-ago quarter.

For full-year 2008, revenue fell 82.5% to $33.5 million from $191.7 million; management cited the transition to a staffing franchisor and operator of its iLabor portal as the reason for the decline in revenue. Gross margin was unchanged at 13.1%.

Net loss for 2008 was $38.8 million compared with a net loss of $12.4 million in 2007. That includes a goodwill impairment charge of $16.8 million.

ClearPoint's online iLabor system can act as a vendor management system and lets the company act as a broker with clients able to order temporary workers from a network of staffing suppliers. ILabor has a focus on commercial staffing.

ClearPoint Business Resources Inc. (OTCBB: CPBR.OB)
For the fourth quarter ended Dec. 31, 2008, compared with the same period in 2007.
Revenue: $2.8 million, -94.7%
Net loss: $572,000 vs. net loss of $6.0 million

For full-year 2008 ended Dec. 31, 2008, compared with 2007.
Revenue: $33.5 million, -82.5%
Net loss: $38.8 million vs. net loss of $12.4 million

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