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View All NewsWorld – Resources Connection Q4 revenue up in constant currency, growth in APAC offsets weak European results
Professional staffing provider Resources Connection Inc. (RECN: NASD), which operates as Resources Global Professionals, reported revenue increased by 0.4% year-over-year in constant currency to $182.1 million in its fiscal fourth quarter 2019 ended 25 May 2018. On a reported basis, revenue was down 0.9%.
(USD thousands) | Q4 2019 | Q4 2018 | % change | constant currency |
Revenue | 182,144 | 183,791 | -0.9% | 0.4% |
Gross margin | 72,956 | 70,428 | 3.6% | N/A |
Gross margin percentage | 40.0% | 38.3% | N/A | N/A |
Net income | 9,369 | 3,981 | 135.3% | N/A |
Revenue in Europe stood at $21.6 million, down 7.8% when compared to the previous year. In Asia Pacific, revenue totalled $13.5 million, up 14.7% when compared to the previous year. Revenue in North America was down 1.0% compared to the previous year.
The company also published results for the full year 2019.
(USD thousands) | FY 2019 | FY 2018 | % change | constant currency |
Revenue | 728,999 | 654,129 | 11.4% | 12.4% |
Gross margin | 282,439 | 246,055 | 14.7% | N/A |
Gross margin percentage | 38.7% | 37.6% | N/A | N/A |
Net income | 31,470 | 18,826 | 67.1% | N/A |
“We are very pleased by the results we delivered in fiscal year 2019,” said Kate W. Duchene, chief executive officer of RGP. “We returned the company to real growth, we improved profitability substantially and we implemented a new organizational structure allowing us to better respond to our global clients.”
“With this progress, we also believe there is greater opportunity ahead,” Duchene said. “As we have set forth previously, we are working to shift our mix of business to deliver high value project solutions that our clients are requesting from us. We will continue to leverage richer data to enhance decision making and prioritise deployment of resources towards high-potential opportunities including digital innovation.”
In trading yesterday Resources Connection shares closed at $16.59, up 1.41% on the day and 14.92% below its 52-week high of $19.50, set on 4 October 2018. Based on its current share price the company has a market value of $531.22 million.