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Spherion revenue beats estimates, profit down

February 12 2008

Spherion Corp.'s (NYSE: SFN) fourth-quarter revenue rose 16.7% to $581.6 million, beating analysts' estimates of $576.7 million.

Fourth-quarter net income, however, fell 75.5% to $9.8 million from $39.8 million in the fourth-quarter of 2006.

The Fort Lauderdale FL-based staffing firm reported a loss of $250,000 in fourth-quarter earnings from discontinued operations compared with earnings from discontinued operations of $29.5 million in the fourth quarter of 2006.

Spherion's fourth-quarter gross margin slipped to 23.1% from 23.8%.

Revenue in the company's clerical staffing division rose 14.8% in the fourth quarter to $264.7 million. Light industrial staffing revenue rose 14.1% to $162.4 million.

On the professional side, fourth-quarter revenue in the information technology staffing segment rose 30.9% to $107.8 million. Finance and accounting staffing revenue rose 6.4% to $27.5 million.

Spherion acquired information technology staffing firm Technisource in the fourth quarter and announced in the third quarter its acquisition of Todays Staffing.

Full-year revenue for Spherion rose 4.9% to $2.02 billion in 2007 from $1.92 billion in 2006. Net income fell 53.8% to $25.3 million from $54.7 million in 2006. Gross margin, however, improved to 23.7% from 23.3%.

Spherion's first-quarter revenue guidance of between $585 million and $600 million exceeded analysts' estimates of $566.8 million.

Spherion Corp. (NYSE: SFN)
For the fourth quarter ended Dec. 30, 2007, compared with the same period in 2006.
Revenue: $581.6 million, +16.7%
Net income: $9.8 million, -75.5%

For the 2007 fiscal year ended Dec. 31, 2007, compared with the previous year.
Revenue: $2.02 billion, +4.9%
Net income: $25.3 million, -53.8%

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