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View All NewsKforce revenue rises 11%
Kforce Inc. (NASD: KFRC) reported first-quarter revenue rose 10.8% year over year to $312.6 million. Gross margin also improved to 30.3% from 29.6% in the year-ago quarter.
However, net income at the Tampa, Fla.-based professional staffing provider fell 7.4% year over year to $5.8 million.
Kforce ranks No. 15 on Staffing Industry Analysts’ 2014 list of largest US staffing firms.
| (US$ thousands) | Q1 2015 | Q1 2014 | % growth |
| Revenue | $312,611 | $282,024 | 10.8% |
| Gross profit | $94,740 | $83,526 | 13.4% |
| Gross margin percentage | 30.3% | 29.6% | |
| Net income | $5,785 | $6,249 | -7.4% |
Quote
“We are pleased with our performance in the first quarter of 2015, as Kforce achieved quarterly revenues of $312.6 million and earnings per share of $0.20,” said Chairman and CEO David L. Dunkel. “Our first quarter growth was broadly driven by the strong growth rates for all reporting segments. We believe these growth rates continue to demonstrate our relentless pursuit of gaining customer share. Against a backdrop of a non-traditional economic recovery, we continue to see secular drivers of flexible staffing driving growth. This is manifested by the disproportionate share of job growth in this recovery coming from the temporary staffing sector as clients seek increased workforce flexibility.”
Revenue by function and segment
| (US$ thousands) | Q1 2015 | Q1 2014 | % growth |
| Total flex revenue | $300,532 | $272,334 | 10.4% |
| Total direct-hire revenue | $12,079 | $9,690 | 24.7% |
| Technology | |||
| Technology flex revenue | $208,438 | $192,463 | 8.3% |
| Technology direct-hire revenue | $5,201 | $4,008 | 29.8% |
| Total technology revenue | $213,639 | $196,471 | 8.7% |
| Finance & Accounting | |||
| Finance & Accounting flex revenue | $66,194 | $57,100 | 15.9% |
| Finance & Accounting direct-hire revenue | $6,878 | $5,682 | 21.0% |
| Total Finance & Accounting revenue | $73,072 | $62,782 | 16.4% |
| Government Solutions | $25,900 | $22,771 | 13.7% |
Gross margin by segment
| Q1 2015 | Q1 2014 | |
| Technology flex | 26.4% | 26.5% |
| Finance & Accounting flex | 28.4% | 28.4% |
| Government solutions flex | 34.1% | 29.0% |
Guidance
Kforce expects second-quarter revenue from continuing operations in the $330 million to $335 million range.
Share price and market cap
Shares in Kforce rose 4.41% to $23.45 in early afternoon trading today; Kforce has a market cap of approximately $692.13 million, according to Yahoo!