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RCM Technologies Inc. (NASD: RCMT) reported that unexpected delays in a contract with a North American utility will result in second-quarter revenue that is below expectations. The company said it now expects second-quarter revenue of between $35.0 million to $36.5 million — roughly flat to down 4.0 percent on a year-over-year basis.
“As we previously communicated, the gradual ramp-up of work by our client and the unpredictability of longer award release cycles can have an adverse impact on our revenues,” said Chairman and CEO Leon Kopyt.
“Although we are disappointed with the developments that took place during our second quarter, we continue to be optimistic with the level and scope of the work proposed for our major North American utility client as evidenced by a recent award of a $19 million engagement to commence early in our third quarter,” Kopyt said. “This engagement was originally expected to commence sometime in the second quarter. We believe that the Company should otherwise perform as expected in the second quarter.”