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US – Hudson Revenue Falls 23%

November 01 2012

Hudson Global Inc. (NASD: HSON) reported third-quarter revenue fell 23.3 percent to $187.9 million from $245.1 million in the same period last year amid a difficult environment and a restructuring effort. The decline was 21.0 percent in constant currency.

“During the third quarter, the business environment deteriorated further due to global economic uncertainties,” said Chairman and CEO Manuel Marquez. “While these conditions challenge our results in the near term, we remain fully committed to our strategy. Our restructuring actions during 2012 are helping us streamline our operations, advance our long-term goals and better position Hudson to capture the upside potential when conditions improve.”

Hudson took a restructuring charge of $1.5 million in the third quarter. The New York-based company reported it eliminated 210 positions since the start of the year, representing 9 percent of the company’s total employee base. Restructuring charges total $7.6 million year-to-date.

Revenue fell across geographies in the third quarter:

  • In the company’s Americas segment, third-quarter revenue fell 18.0 percent to $39.1 million from $47.7 million in the year-ago quarter.
  • Third-quarter Asia Pacific revenue fell 27.0 percent to $73.4 million — down 25.4 percent in constant currency.
  • Hudson Europe third-quarter revenue fell 22.1 percent to $75.3 million from $96.8 million in the year-ago quarter — down 17.7 percent in constant currency.

Third-quarter gross margin narrowed to 36.0 percent from 37.9 percent in the year-ago quarter.

Hudson reported a net loss of approximately $2.2 million for the quarter, compared with net income of $3.4 million for the third quarter of 2011.

Hudson reported fourth-quarter revenue to decline by 21 to 24 percent against the prior year fourth quarter.

Hudson Global Inc. (NASD: HSON)
 For the third quarter ended Sept. 30, 2012, compared with the same period last year.
 Revenue: $187.9 million, -23.3 percent
 Net Loss: $2.2 million vs. net income of $3.4 million

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