Daily News

View All News

Comforce revenue slips 7%, PrO rises

November 05, 2009
Staffing Industry Analysts North American Daily News

Third-quarter revenue fell 6.5% at Comforce Corp. (AMEX: CFS) to $139.7 million from $149.4 million in the third quarter of 2008.

Revenue rose 3.0% on a year-over-year basis in Comforce's PrO Unlimited division, a provider of vendor management services and payrolling services, due to an increase in services provided to new clients, according to the company. However, third-quarter staff augmentation revenue fell 23.7% amid a decrease in client demand.

"We, like other companies in our industry, are continuing to be negatively impacted by the current economic environment and weak labor market," said Chairman and CEO John Fanning. "Even though the rate of job losses has decreased in recent months, job losses continue and we still have no visibility as to when this might translate into a real recovery in our business."

Third-quarter gross margin narrowed to 14.3% from 15.8% in the year-ago quarter. The company said pricing pressure and lower sales volume on higher margin services led to the decrease.

Net income fell 21.6% on a year-over-year basis to $1.1 million.

Comforce Corp. (AMEX: CFS)
For the third quarter ended Sept. 27, 2009, compared with the same period in 2008.
Revenue: $139.7 million, -6.5%
Net income: $1.1 million, -21.6%