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Comsys revenue down 2%

February 18 2010

Comsys IT Partners Inc. (NASD: CITP), now being acquired by Manpower Inc. (NYSE: MAN), said Wednesday fourth-quarter revenue fell 2.0% on a year-over-year basis to $172.5 million.

The Houston-based information technology staffing firm had given fourth-quarter revenue guidance of between $170 million and $175 million.

Comsys' fourth-quarter revenue was up 9.7% when compared with the third quarter.

Fourth-quarter gross margin increased to 25.1% from 24.0% in the year-ago quarter.

Comsys posted net income of $5.9 million in the fourth quarter compared with a net loss of $82.6 million in the fourth quarter of 2008. The company had reported a goodwill impairment charge of $86.8 million in the year-ago quarter.

Full-year 2009 revenue fell 10.7% to $649.3 million from 2008 revenue of $727.1 million. Full-year gross margin edged up to 24.4% from 24.3%.

Comsys reported 2009 net income of $9.4 million compared with a net loss of $65.2 million in 2008.

Manpower announced Feb. 1 that it planned to buy Comsys for $17.65 per share for a total enterprise value of $431 million. Manpower will pay half in cash and half in shares but has the option to pay all in cash. The deal is expected to close in April.

Comsys ranked as the third-largest provider of IT staffing, according to Staffing Industry Analysts' list of largest IT staffing firms based on 2008 revenue. It also owns Tapfin, which provides vendor management services, recruitment process outsourcing and services procurement management.

Comsys IT Partners Inc. (NASD: CITP)
For the fourth quarter ended Jan. 3, 2010, compared with the same period in the previous year.
Revenue: $172.5 million, -2.0%
Net income: $5.9 million vs. a net loss of $82.6 million

For the full year ended Jan. 3, 2010, compared with the previous year.
Revenue: $649.3 million, -10.7%
Net income: $9.4 million vs. net loss of $65.2 million

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