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Spherion revenue slips 12.7%, posts loss

February 05 2009

Fourth-quarter revenue fell 12.7% at Spherion Corp. (NYSE: SFN) to $507.5 million from $581.6 million in the fourth quarter the previous year. The Fort Lauderdale FL-based staffing firm also reported a net loss of $126.2 million, compared with net income of $9.8 million in the year-ago quarter.

Professional staffing revenue rose 6.6% in the fourth quarter thanks to Spherion's acquisition of information technology staffing and solutions firm Technisource in December 2007. Including the acquisition on a pro forma basis, however, professional services revenue fell 22.8%.

Revenue in the company's staffing services division fell 19.7%. This division operates in the office/clerical and industrial segments and includes managed services revenue.

Spherion posted a fourth-quarter net loss of $126.2 million, compared with net income of $9.8 million in the year-ago quarter. Adverse market conditions prompted the company to take a noncash goodwill and intangible impairment charge of $149.8 million. In addition, Spherion reported a $9.5 million restructuring charge.

Spherion's fourth-quarter gross margin narrowed to 20.7% from 23.1%.

Full-year 2008 revenue, however, rose 8.5% to $2.19 billion.

Full-year gross margin slipped to 22.0% from 23.7%. And the company posted a net loss of $118.5 million, compared with net income of $25.3 million in the previous year.

Spherion did not provide revenue guidance saying the tough economy made predictions difficult.

Spherion Corp. (NYSE: SFN)
For the fourth quarter ended Dec. 28, 2008, compared with the same period in 2007.
Revenue: $507.5 million, -12.7%
Net loss: $126.2 million vs. net income of $9.8 million

For the full year ended Dec. 28, 2008, compared with the previous year.
Revenue: $2.19 billion, +8.5%
Net loss $118.5 million vs. net income of $25.3 million

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