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US – RCM Revenue Up 4%; Foresees Sandy Impact

November 08 2012

RCM Technologies Inc. (NASD: RCMT), a Pennsauken, N.J.-based staffing provider, reported third-quarter revenue rose 3.8 percent to $34.8 million from $33.6 million the same quarter year prior.

Third-quarter gross margin improved to 27.8 percent from 27.1 percent in the year-ago quarter.

“Our IT segment did not meet our revenue expectations in the 2012 third quarter but we did experience our second consecutive quarterly increase in gross profit dollars of approximately $0.3 million, or approximately 10 percent, as compared to the prior year,” said Chairman and CEO Leon Kopyt. “Our engineering segment revenues and gross profit dollars also grew approximately 10 percent as compared to the prior year, due primarily to our recent acquisition of BGA.”

Third-quarter net income at the company fell 12.4 percent to $634,000 from $724,000 in the year-ago quarter.

The company, which provides IT, engineering and healthcare staffing, reported it is cautious regarding the fourth quarter because much of its business is concentrated in areas impacted by Hurricane Sandy.

“As of today, we believe we will lose at least $1.0 million in revenues because of Hurricane Sandy and that estimate may grow significantly,” said Kopyt.

RCM Technologies Inc. (NASD: RCMT)
For third quarter ended Sept. 29, 2012, compared with the same period a year ago.
Revenue: $34.8 million, +3.8 percent
Net income: $634,000, -12.4 percent

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