Daily News

View All News

MPS revenue falls 24.4%, but slight pickup seen

April 29, 2009

MPS Group Inc. (NYSE: MPS) announced first-quarter revenue fell 24.4% year-over-year to $429.4 million amid a tough economy. However, CEO Timothy Payne said sales are showing some improvement in the second quarter.

"As we enter the second quarter, we are somewhat encouraged that sales activity appears to be improving slightly versus the fourth quarter of last year," Payne said.

First-quarter revenue fell across all MPS' business units. North American professional services revenue, its largest segment, fell 15.6% year-over-year to $151.7 million. North American information technology services revenue fell 19.9%, International professional services fell 32.5% and international information technology services fell 37.9%

Weak demand for direct hire affected first-quarter results, according to the company. Direct hire represented 3.2% of total revenue in the first quarter compared with 5.8% in the first quarter of 2008.

Excluding effects of currency exchange and acquisitions, MPS said first-quarter revenue fell 16.6% year-over-year.

MPS' first-quarter gross margin narrowed to 26.9% from 28.6% in the year-ago quarter.

Net income fell 91.6% to $1.6 million from $19.1 million in the first quarter of 2008.

MPS estimated second-quarter revenue of between $380.0 million and $420.0 million — a year-over-year decline of between 28.8% and 35.5%.

MPS Group Inc. (NYSE: MPS)
For the first quarter ended March 31, 2009, compared with the same period in 2008.
Revenue: $429.4 million, -24.4%
Net income: $1.6 million, -91.6%