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Fortune Industries Inc. (AMEX: FFI) on Thursday reported a decline in revenue and an increase in net income for its fiscal first quarter ended Nov. 30. But it's now moving forward as a pure-play professional employer organization.
The Indianapolis-based company sold its subsidiaries in the wireless networks, fiber-optic road systems, screen-printing ink products and electronics businesses effective Nov. 30.
Fortune said revenue fell 17.4% to $36.2 million in its fiscal first quarter. Net income, however, rose 80.6% to $242,000.
Its PEO revenue for the first quarter fell 17.8% to $16.7 million from $20.4 million in the same period in the previous year. PEO net income fell to $91,000 from $311,000 in the year-ago quarter. And gross margin edged up to 20.3% from 20.2%.
The company said PEO revenue suffered because the economic slowdown caused a decrease in worksite employees.
Fortune said it provides PEO services to 16,200 employees in all 50 states. Industries served include healthcare, professional services, software development, manufacturing logistics, telemarketing and construction.
"The economy has definitely affected our company, but by becoming a pure-play PEO on December 1st, 2008, and selling our less-profitable subsidiaries, we anticipate continued success through positive earnings by focusing our human capital and financial resources on our PEO business," said Fortune CEO John Fisbeck.