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Resources Connection profit falls 11%

December 21 2007

Second-quarter net income fell 11.1% at Irvine CA-based Resources Connection Inc. (NASD: RECN), which supplies finance and accounting staffing through its Resources Global Professionals subsidiary. The company posted net income of $13.0 million in the quarter ended Nov. 30, compared with $14.7 million in the same period in the prior year.

Revenue, however, rose 13.0% to $206.6 million in the second quarter from $182.8 million in the prior year. Gross margin slipped to 38.5% from 39.7%.

Resources Connection also announced that it acquired Domenica BV on Dec. 18. Domenica is a Netherlands-based provider of actuarial services to pension and life insurance companies. Resources Connection paid euro13.5 million (US$19.4 million) and will pay additional earn-outs based on upcoming performance. Domenica had revenue of euro13.5 million for 2006.

Resources Connection Inc. (NASD: RECN)
For the second quarter of its fiscal year ended Nov. 30, 2007, compared with the same period in the prior year.
Revenue: $206.6 million, +13.0%
Net income: $13.0 million, -11.1%

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