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View All NewsHudson revenue rises 3% in constant currency, notes restructuring charges
Hudson Global Inc. (NASD: HSON) reported revenue fell 2.4% in the fourth quarter to $136.7 million, but rose 2.8% on a constant currency basis. Revenue rose 12.9% in constant currency in Hudson’s Asia Pacific division but fell elsewhere. Fourth-quarter gross margin improved to 39.0%.
The New York-based staffing provider reported net income of $2.7 million in the fourth quarter compared to a net loss in year ago quarter. The fourth quarter included $1.8 million in restructuring charges for headcount reductions primarily in Europe and corporate; the quarter also included a charge for $2.3 million in discontinued operations.
| (US$ thousands) | Q4 2014 | Q4 2013 | % growth | % constant currency |
| Revenue | $136,677 | $139,999 | -2.4% | 2.8% |
| Gross margin | $53,256 | $52,838 | 0.8% | 6.4% |
| Gross margin percentage | 39.0% | 37.7% | -- | |
| Net income/loss | $2,743 | -$11,296 | -- |
Quote
“In 2014, we realized double-digit constant currency growth in recruitment process outsourcing (RPO), talent management and permanent recruitment,” said Chairman and CEO Manolo Marquez. “We have made meaningful progress in the company’s transformation, narrowed our focus on our core business lines with the sale of Legal eDiscovery and further strengthened our path to profitability.”
Revenue by geography
| (US$ thousands) | Q4 2014 | Q4 2013 | % growth | % constant currency |
| Hudson Americas | $11,709 | $12,348 | -5.2% | -5.0% |
| Hudson Asia Pacific | $58,351 | $55,404 | 5.3% | 12.9% |
| Hudson Europe | $66,617 | $72,247 | -7.8% | -3.4% |
Guidance
Hudson expects first-quarter revenue of between $115 million and $125 million.
Share price and market cap
Shares in Hudson fell 5.52% in early afternoon trading to $2.74; the company had a market cap of $89.68 million, according to Yahoo!