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Volt net revenue falls 9% in fiscal Q1; staffing service revenue down 8%

March 13, 2015

Volt Information Sciences Inc. (NYSE MKT: VISI), the 12th-largest US staffing firm, reported net revenue fell 9.1% to $383.1 million in its fiscal first quarter ended Feb. 1.  Staffing service revenue totaled $360.8 million, or 94% of revenue; it fell 8% on a year-over-year basis.

(US$ thousands) Q1 2015  Q1 2014  % growth
Net revenue $383,066 $421,628 -9.1%
Gross margin 13.7% 13.7%  
Net loss -$13,319 -$17,074 nm

The New York-based company’s first quarter of fiscal 2014 included an expense of $2.7 million for restatement, investigations and remediation; $4.4 million in losses of discontinued operations; and $700,000 in restructuring costs.

In December, Volt sold its computer systems segment to NewNet Communication Technologies LLC, a Skyview Capital portfolio company, in order to focus on its staffing business. Volt sold its ProcureStaff Technologies Ltd. VMS division to IQNavigator in January 2014.

Quote

“Our first quarter results demonstrate our ongoing execution against the strategic goal of a more highly focused and profitable Volt,” said President and CEO Ron Kochman.

“We continue to focus on improving our core staffing and services business, particularly in our North American traditional time and materials staffing services, as well as reducing our exposure to unfavorable customer contracts,” Kochman said. “Staffing Services segment operating income and direct margin rate improved as a result of our initiatives. We are pleased with the ongoing improvements in the delivery of our staffing services and believe that our disciplined focus on our business strategy and priorities will drive improved margins and profitability over the course of this fiscal year.”

Share price and market cap

Shares in Volt fell 1.95% to $12.55 in early afternoon trading today; Volt has a market cap of approximately $262.76 million, according to Yahoo!