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Kforce Revenue Rises 11%

August 03 2011

Kforce Inc. (NASD: KFRC), a Tampa, Fla.-based provider of professional staffing, reported second-quarter revenue rose 11.3 percent to $274.0 million from $246.1 million in the second quarter of last year.

Revenue rose in three of the company’s four segments. Revenue for Kforce’s largest segment, technology, rose 15.2 percent year over year to $154.5 million. Results for the company’s other segments include:

• Finance & accounting, up 26.1 percent to $54.8 million
• Health & life sciences, up 2.9 percent to $42.7 million
• Government solutions, down 19.0 percent to $21.9 million

Chairman and CEO David Dunkel said in a conference call with analysts that the company was, overall, pleased with its second-quarter revenue.

“However, results for the quarter were mixed as we continued to experience headwinds which negatively impacted a number of our businesses,” Dunkel said. “Our government business continues to be impacted by the challenging government contracting environment, and the mortgage related component of our F&A business continues to be negatively impacted by the slowdown in mortgage refinancing and foreclosure activity. Kforce clinical research also did not grow sequentially in the quarter as previously anticipated due to a slower than expected ramp at a major client project and some headcount reductions at two large customers.”

Kforce’s second-quarter gross margin slipped to 31.6 percent from 31.9 percent in the year-ago quarter.

Net income was $6.8 million, up 31.9 percent from year-ago net income of $5.1 million.

Kforce estimates third-quarter 2011 revenue of $276.0 million to $283.0 million, a year-over-year increase of between 6.4 percent and 9.0 percent.

Kforce Inc. (NASD: KFRC)
For the second quarter ended June 30, 2011, compared with the same period in 2010
Revenue: $274.0 million, +11.3 percent
Net income: $6.8 million, +31.9 percent

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