Daily News

View All News

RCM revenue falls 3%, net income also declines

November 06, 2015

RCM Technologies Inc. (NASD GM: RCMT) — a provider of engineering, IT and healthcare staffing — reported revenue fell 2.8% to $45.1 million in its third quarter ended Oct. 3.

Net income at the Pennsauken, N.J.-based firm fell 48.7%.

(US$ thousands) Q3 2015 Q3 2014 % growth
Revenue $45,077 $46,382 -2.8%
Gross profit $12,802 $13,161 -2.7%
Gross profit margin 28.4% 28.4% --
Net income $962 $1,877 -48.7%

Quote

“While cognizant of the lower year over year consolidated comparisons of our operating results, we are pleased to see the improvement in our third quarter of 2015 results as compared to our second quarter of 2015,” said President and CEO Rocco Campanelli. “We are also observing encouraging signs in several of our businesses on a year over year basis. Our specialty healthcare staffing segment continues to reach new heights as their third quarter, which is typically a seasonal low, achieved another record result with $10.7 million in revenues. Our healthcare revenues grew by almost 50% as compared to the third quarter of 2014.

“Our information technology segment continued its steady performance and grew by 5.3% in the third quarter of 2015 as compared to the third quarter of 2014 despite our two largest life sciences clients from fiscal 2014 declining by $2.0 million in revenues.

“Our engineering segment improved their gross profit contribution to $4.9 million in the third quarter of 2015 as compared to our disappointing second quarter of 2015 gross profit of $4.3 million. We are very excited about the master services agreement signed with Bruce Power during the quarter and expect that contract to act as a springboard for an improved fiscal 2016.”

Share price and market cap

Shares in RCM were unchanged in early afternoon trading today at $5.27; RCM has a market cap of $66.61 million, according to Yahoo!