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Hudson Global Inc. (NASD: HSON) reported first-quarter revenue fell 17.4 percent to $165.7 million from $200.6 million in the same period last year. The decline was 16.8 percent in constant currency and at the high end of the 14- to 18-percent decline predicted at the end of last quarter.
The New York-based professional staffing provider continued its restructuring program in the first quarter, resulting in restructuring charges of $2.0 million, primarily in Europe. During 2013, the company expects to incur total restructuring charges of up to $4 million.
Revenue at the New York-based professional staffing provider fell across geographies in the first quarter, with Asia Pacific region again posting the biggest decline.
- Americas: Revenue fell 17.6 percent to $37.2 million in the first quarter. Gross margin percentage fell to 21.9 percent from 26.2 percent in the first quarter of last year, due to declines in both temporary contracting and permanent recruitment. Legal eDiscovery continued to see lower demand and RPO growth slowed.
- Asia Pacific: Revenue fell 24.3 percent to $56.2 million in the first quarter amid economic uncertainty and increasing hesitation from clients. Gross margin fell to 38.2 from 39.5 in the same quarter last year. A 34 percent decline in permanent recruitment gross margin accounted for most of the overall gross margin drop.
- Europe: Revenue fell 11.0 percent to $72.3 million in the first quarter. The U.K. showed signs of stabilization with smaller declines in temporary recruitment and strong growth in Legal eDiscovery, though Talent Management was softer. Gross margin slipped to 37.4 percent from 39.5 percent in the same quarter year prior.
First-quarter gross margin for the company as a whole slipped to 34.2 percent from 36.5 percent in the first quarter of last year.
Hudson posted a net loss of $8.2 million in the first quarter compared to a net loss of $3.2 million in the first quarter of last year.
The company expects second-quarter revenue could fall 12 to 17 percent from last year’s second-quarter revenue of $204.8 million.
Hudson Global Inc. (NASD: HSON)
For the first quarter ended March 31, 2013, compared with the same period in 2012.
Revenue: $165.7 million, -17.4 percent
Net loss: $8.2 million vs. net loss of $3.2 million