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RCM Technologies Inc. (NASD: RCMT), a Pennsauken, N.J.-based staffing provider, reported third-quarter revenue rose 18.6 percent to $41.3 million from $34.8 million in the year-ago quarter.
“Our engineering segment set record highs for revenue and gross profit for the third consecutive quarter, our information technology segment posted another strong quarterly performance and our specialty healthcare segment grew its revenues in the third quarter of 2013 by 15.8 percent as compared to the 2012 third quarter despite significant decreases in revenues from its largest client in fiscal 2013,” said Chairman and CEO Leon Kopyt.
Third-quarter gross margin narrowed to 25.9 percent from 27.8 percent in the year-ago quarter.
Net income rose 80.1 percent to $1.1 million from $634,000 in last year’s third quarter and reflects an increase of $500,000 resulting from the reduction of an unrecognized tax benefit.
The firm also this week announced its board approved a new stock repurchase program to repurchase up to $5.0 million of RCM’s outstanding shares of common stock over the next 12 months. RCM had approximately 12.4 million shares of common stock outstanding at the end of the quarter.
A shareholder’s group involved in a proxy battle with RCM said in a U.S. Securities and Exchange Commission filing that the third-quarter financial results validate the need for change at RCM. The group, which says it owns 13.3 percent of outstanding common stock in RCM, has nominated two director nominees to RCM’s board of directors at the upcoming 2013 annual meeting of stockholders.
RCM Technologies Inc. (NASD: RCMT)
For the third quarter ended Sept. 28, 2013, compared with the same period in the previous year.
Revenue: $41.3 million, +18.6 percent
Net income: $1.1 million, +80.1 percent