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RCM revenue rises 8%

March 05, 2015

RCM Technologies Inc. (NASD GM: RCMT) — a provider of engineering, IT and healthcare staffing — reported revenue rose 7.5% in the fourth quarter to $49.3 million.

The Pennsauken, N.J.-based firm reported net income of $1.7 million compared to a net loss of $1.6 million in the same quarter of last year. The fourth quarter of 2013 included $4.7 million in severance and other charges.

(US$ thousands) Q4 2014 Q4 2013 % growth
Revenue $49,310 $45,849 7.5%
Gross profit $13,320 $11,794 12.9%
Gross profit margin 27.0% 25.7% --
Net income/loss $1,717 -$1,582 nm

Quote

“All three of our segments made significant contributions to our highest operating income since fiscal 2002,” said CFO Kevin Miller. “We expect to continue our operating income growth in fiscal 2015. Our business has significant operating leverage as demonstrated by our 37.3% growth in operating income before severance and other charges on 16.5% growth in gross profit.”

Full-year results

(US$ thousands) 2014 2013 % growth
Revenue $193,770 $170,778 13.5%
Gross profit $51,963 $44,361 17.1%
Gross profit margin 26.8% 26.0% --
Net income $6,814 $1,990 nm

Share price and market cap

Shares in RCM rose 5.20% in early afternoon trading to $6.69; RCM has a market cap of $84.00 million, according to Yahoo!