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Comsys revenue falls 4.0%

February 19 2009

Fourth-quarter revenue fell 4.0% at Comsys IT Partners Inc. (NASD: CITP) to $176.0 million from $183.3 million in the same period last year. The Houston-based information technology staffing firm also took a goodwill impairment charge citing tough economic conditions, and posted a net loss for the quarter.

Comsys said fourth-quarter revenue would have fallen 8.0% adjusting for acquisitions in the prior year on a pro forma basis. Fourth-quarter permanent placement revenue fell 25.0% to $1.2 million compared with the year-ago quarter.

Fourth-quarter gross margin narrowed to 24.0% from 25.2% a year ago.

Comsys posted a net loss of $82.6 million, compared with net income of $8.7 million in the fourth quarter of 2007. The company said it took a goodwill impairment charge of $86.8 million because of its stock price and current market conditions. Comsys said it would have posted net income of $3.4 million without the charge.

Fourth-quarter results also include $600,000 for restructuring, $800,000 for a noncash compensation expense from an acquisition and a $1.0 million bad debt expense related to last year's bankruptcy of vendor management system Ensemble Chimes Global.

Full-year 2008 revenue was down 2.2% to $727.1 million, and full-year gross margin narrowed to 24.3% from 24.9%.

Full-year 2008's net loss was $65.2 million compared with net income of $33.3 million in 2007.

Comsys did not provide guidance for the first quarter citing current economic conditions.

Comsys IT Partners Inc. (NASD: CITP)
For the fourth quarter ended Dec. 28, 2008, compared with the same period in the previous year.
Revenue: $176.0 million, -4.0%
Net loss: $82.6 million vs. net income of $8.7 million

For the full year ended Dec. 28, 2008, compared with the previous year.
Revenue: $727.1 million, -2.2%
Net loss: $65.2 million vs. net income of $33.3 million

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