Professional staffing provider Resources Connection Inc. (RECN: NASD), which operates as Resources Global Professionals, reported revenue decreased by 3.0% year-over-year in constant currency to $172.2 million in its fiscal first quarter 2020 ended 24 August 2019. On a reported basis, revenue was down 3.6%.

Revenue was impacted by a continued slowdown in Europe.

Compared to the prior year first quarter, the decrease in revenue in the first quarter of fiscal 2020 reflects the impact of reduced client demand in the Nordics as well as the wind-down of technical accounting implementation projects. 

The year-over-year increase in gross margin percentage is related primarily to an improved bill/pay ratio, driven by the impact of internal initiatives to improve pricing and a decrease in pay rate.

During the period the company sold its Nordic operations to Capacent Holding AB. The deal included RGP’s operations in Sweden, Norway, Iceland and Denmark.

On 23 August Resources Connection reported CFO Herbert Mueller resigned from his role. Jennifer Ryu, who presently serves as senior VP of finance and accounting, replaced Mueller as interim CFO.

During a conference call yesterday, the company said it expects to make the CFO decision permanent by the end of the calendar year.

In September it was reported that the company acquired Veracity Consulting Group LLC, a US-based supplier of IT services.

“We engaged in decisive actions this quarter to improve our financial performance over the mid and longer term – including an important acquisition, a divestiture and an office closure,” said Kate W. Duchene, CEO. “We are very pleased to have completed these strategic moves in Q1 of FY20 and continue to progress with our transformation efforts. At the same time, we are disappointed by our revenue results this quarter, and although the decline was modest, we have specific plans to build momentum in the second quarter and are encouraged by the strengthening pipeline.”

Revenue by Geography

Within Europe, the group experienced significant decreases in revenues from the Belgian and the Nordics market, which it divested.

Growth in Asia Pacific was led by Japan, India and Singapore, which the company said it continues to see as expanding markets. The group also pointed to performance in the UK lagging due to the uncertain political environment.

In trading yesterday Resources Connection shares closed at USD 16.64, down 0.95% on the day and 14.67% below its 52-week high of USD 19.50, set on 4 Oct 2018. Based on its current share price the company has a market value of USD 531.98 million.