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View All NewsResources Connection revenue up 9%
Resources Connection Inc. (NASD: RECN) reported revenue rose 8.9 percent year over year (8.7 percent on a constant dollar basis) to $143.4 million in its fiscal first quarter ended Aug 30 with growth coming from its US operations.
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.
Revenue in the US rose 13.3 percent year over year to $115.8 million, while international revenue fell 6.4 percent year over year (7.1 percent on a constant dollar basis) to $27.6 million.
The company reported $700,000 in severance charges in Europe during the first quarter and expects $250,000 in severance charges in the second quarter.
Resources Global Professionals also announced Mark Campbell will join Resources Global Professionals in November as vice president – European region. Campbell will be responsible for all aspects of the firm’s European operations. He will be based in London and report directly to the chief operating officer. Campbell most recently was head of management consulting and sales for the EMEA region at Hitachi Consulting. Prior roles include CEO of Hedra and lead partner for KPMG Consulting’s civil government practice.
Quote
“Fiscal 2015 started well with quarter-over-quarter improvement in our significant financial metrics, including revenue, gross margin and adjusted EBITDA,” said President and CEO Tony Cherbak. “Overall, first quarter revenue is our highest for a first quarter since fiscal 2009 and, in particular, our US operations achieved double digit growth quarter-over-quarter. Overseas, we continue to make changes that we believe will strengthen our operations in the long-term. Our international presence is critical for serving our Fortune 1000 clients.”
Revenue
| Q1 2015 (000s) | Q1 2015 (000s) | % growth | % growth constant dollar | |
| Revenue | $143,447 | $131,704 | 8.9% | 8.7% |
Revenue by geography
| Growth: Q1 2015 vs. Q1 2014 | |
| U.S. revenue | 13.3% |
| International revenue | -6.4% |
Gross margin
| Q1 2015 | Q1 2015 | |
| Gross margin | 39.2% | 37.7% |
Net income
| Q1 2015 (000s) | Q1 2015 (000s) | % growth | |
| Net income | $5,395 | $3,653 | 47.7% |
Share price and market cap
Shares in Resource Connection were up 0.21 percent today in early afternoon trading to $14.59, and Resource Connection has a market cap of approximately $559.07 million, according to Yahoo!