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Resources Connection Revenue Up 5%

January 05 2012

Revenue rose 4.7 percent at Resources Connection Inc. (NASD: RECN), a provider of professional staffing, to almost $145.0 million in its fiscal second quarter ended Nov. 26, 2011. That compares to revenue of $138.5 million in the same period in the previous year.

The Irvine, Calif.-based company provides staffing and other services through its Resources Global Professionals subsidiary. Segments served by the firm’s staffing services include finance/accounting, information technology, legal and human resources. It ranks as the third-largest provider of finance/accounting staffing in the U.S., according to Staffing Industry Analysts.

Resources Connection’s second-quarter U.S. revenue was $102.9 million, up 1.3 percent from the same period in the previous fiscal year, the company reported in a conference call with analysts.

Second-quarter gross margin narrowed to 37.9 percent from 39.5 percent in the year-ago quarter. Gross margin for the U.S. business was 39.9 percent.

Net income rose 44.9 percent to $25.3 million in the second quarter from $17.5 million in the second quarter of the previous fiscal year. Both quarters include adjustments to reflect the company’s opinion that it will not owe an earn-out payment for its acquisition of the Sitrick Brincko Group in November 2009. Sitrick Brincko provides crisis public relations and restructuring services.

Resources Connection Inc. (NASD: RECN)
For the fiscal second quarter ended Nov. 26, 2011, compared with the same period in the previous fiscal year.
Revenue: $145.0 million, +4.6 percent
Net income: $25.3 million, +44.9 percent


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