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SFN Group Revenue Edges Down

July 28, 2011

SFN Group Inc. (NYSE: SFN) reported Wednesday that second-quarter revenue fell 0.3 percent to $512.2 million from $514.0 million the same period last year. But gross margin improved to 21.4 percent from 20.5 percent.

The Fort Lauderdale, Fla.-based staffing provider reported staffing services revenue rose 1.7 percent in the second quarter to $268.2 million amid growth in small and midsize customers. Professional services revenue fell 2.4 percent to $244.0 million amid the completion of several professional contingent workforce solutions projects. Gross margin in the professional service segment rose 250 basis points to 28.1 percent as a result of increased pay/bill spreads and growth in higher margin services such as direct hire and recruitment process outsourcing.

SFN Group’s net income was $8.6 million, in the second quarter, up from $2.7 million in the year-ago quarter.

Randstad Holding NV announced last week plans to buy SFN Group.

SFN Group Inc. (NYSE: SFN)
For the second quarter ended June 26, 2011, compared with quarter ended June 27, 2010.
Revenue: $512.2 million, -0.3 percent
Net income: $8.6 million vs. net income of $2.7 million