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Kforce revenue up, divisions sold

July 30 2008

Kforce Inc. (NASD: KFRC) reported a 4.8% increase in second-quarter revenue to $255.1 million, and said it completed the sales of its scientific and per diem nurse staffing divisions during the quarter.

The Tampa FL-based staffing firm sold its scientific staffing division to Aerotek Inc., part of the Allegis Group, in May. The company announced the sale of the per diem nurse staffing unit with its earnings on Tuesday.

Kforce said technology staffing revenue rose 1.1% in the second quarter to $131.8 million from $130.3 million in the same period last year.

Revenue increased 24.2% year-over-year to $18.9 million in its government solutions business; and 24.9% to $48.4 million in its health and life sciences business.

However, second-quarter revenue fell 5.3% to $56.1 million in Kforce's finance and accounting division.

The company's gross margin narrowed to 35.8% from 35.4%.

Second-quarter net income fell 17.7% to $8.7 million from $10.6 million in the second quarter of last year. The 2008 results include a gain of $3.6 million for the sale of scientific and per diem nursing divisions.

Kforce estimated third-quarter revenue of $247 million to $253 million.

The company also announced that Patrick Moneymaker has resigned as CEO of Kforce Government Holdings Inc., but was elected to serve on the Kforce board. Moneymaker will become president and CEO of Proxy Aviation Systems.

In addition, CFO Joe Liberatore has also been named as an executive VP.

Kforce Inc. (NASD: KFRC)
For the second quarter ended June 30, 2008, compared with the same period in 2007.
Revenue: $255.1 million, +4.8%
Net income: $8.7 million, -17.7%

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