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View All NewsResources Connection revenue up 10%
Resources Connection Inc. (NASD: RECN) reported revenue rose 10.6% year over year to $146.8 million in its fiscal third quarter ended Feb. 28.
The prior year’s quarter included the Thanksgiving holiday. The company estimates the revenue impact of the Thanksgiving holiday shift was approximately $4.0 million; on a pro forma basis, current quarter revenue would have grown 7.6% (9.8% on a constant currency basis) compared to the prior year quarter.
Revenue in the US increased 17.3% year over year (13.4% on a pro forma basis reflecting the Thanksgiving holiday). International revenue decreased 13.0% (down 3.1% on a constant currency basis).
The Irvine, Calif.-based company’s operating subsidiary, Resources Global Professionals, provides professionals specializing in accounting, finance, risk management, internal audit, information management, legal and other areas.
| (US$ thousands) | Q3 2015 | Q3 2014 | % growth |
| Revenue | $146,832 | $132,725 | 10.6% |
| Gross margin | $54,841 | $47,765 | 14.8% |
| Gross margin percentage | 37.3% | 36.0% | |
| Net income | $5,989 | $2,279 | 162.8% |
Revenue by geography
| Growth: Q3 2015 vs. Q3 2014 | |
| U.S. revenue | 17.3% |
| International revenue | -13.0% (-3.1% on a constant currency basis) |
Quote
“Our increase in net earnings was substantially driven by an improvement in gross margin as well as leveraging our general and administrative expenses over higher revenues,” said Tony Cherbak, president and CEO. “We are pleased with our quarter-over-quarter revenue growth in the US and Asia Pacific and are working hard to improve our operations in Europe.”
Share price and market cap
Shares in Resource Connection fell 6.21% today in early afternoon trading to $16.40, and Resource Connection has a market cap of approximately $617.19 million, according to Yahoo!