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View All NewsHudson Q1 revenue falls, reports restructuring and sales of operations
Hudson Global Inc. (NASD: HSON) first-quarter revenue fell 3.3% in constant currency to $124.3 million. It also reported sales of business lines, cessation of some European operations and restructuring charges.
The New York-based professional staffing provider recorded a restructuring charge of $1.3 million in the first quarter for headcount reductions primarily in Europe and the Americas. Hudson’s board approved $11.1 million more in restructuring charges to be taken by the third quarter and OK’d an additional $1.5 million in March related to the exit of Americas IT and some European companies.
Hudson also announced today announced the sale of its Americas IT staffing business to Mastech Inc. for $17.0 million. In addition, Hudson reported the sale of its Netherlands operations to InterBalance Group B.V. effective April 30 for €8.1 million.
Hudson also announced it ceased nonprofitable operations in Central and Eastern Europe (Ukraine, Czech Republic and Slovakia), and the company will exit its operations in Luxembourg. These countries generated $2.9 million in revenue in 2014.
| (US$ thousands) | Q1 2015 | Q1 2014 | % growth | % constant currency |
| Revenue | $124,317 | $144,167 | -13.8% | -3.3% |
| Gross margin | $47,904 | $54,029 | -11.3% | |
| Gross margin percentage | 38.5% | 37.5% | -- | |
| Net loss | -$6,838 | -$4,544 | -- |
Quote
“We have continued to implement our strategy narrowing the focus on core businesses, recently entering into an agreement to divest our Americas IT staffing business and divesting the project solutions business in the Netherlands,” said Chairman and CEO Manolo Marquez. “In the first quarter, with the exception of the UK, we continued to deliver constant currency growth in the rest of our key markets, most notably in Asia Pacific where we made the majority of our investments last year. As Stephen Nolan starts to lead the company from May 13th, I wish him and the rest of Hudson’s leadership team great success going forward.”
Hudson VP and CFO Stephen Nolan replaces Manuel “Manolo” Marquez as CEO upon the expiration of Marquez’s contract on May 12. The company also plans to propose governance changes at its 2015 annual meeting of stockholders.
Revenue by geography
| (US$ thousands) | Q1 2015 | Q1 2014 | % growth | % constant currency |
| Hudson Americas | $10,978 | $12,244 | -10.3% | -10.1% |
| Hudson Asia Pacific | $53,139 | $56,430 | -5.8% | 6.4% |
| Hudson Europe | $60,200 | $75,493 | -20.3% | -9.3% |
Guidance
Hudson expects second-quarter revenue of between $117 million and $127 million.
Share price and market cap
Shares in Hudson fell 0.76% in early afternoon trading to $2.60; the company had a market cap of $87.21 million, according to Yahoo!