RCM Technologies Inc. (NASD GM: RCMT) — a provider of engineering, IT and healthcare staffing — reported revenue fell 11.9% in its fiscal third quarter ended Oct. 1. Gross margin also narrowed from same period of the prior year.

On the last day of fiscal 2015, RCM disposed of its QAD Software Solutions business unit, part of the company’s IT segment, which generated $800,000 in revenue and $300,000 in gross profit in the fiscal third quarter of 2015.

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“Our Specialty Health Care segment’s third quarter revenues of $12.0 million established a new third quarter record despite seasonal softness, mainly due to summer vacations for several large school contracts,” said President and CEO Rocco Campanelli. “Our Information Technology segment revenues for the third quarter continued to lag prior year results as several large contracts ended in late 2015 and early 2016. We are confident that in the next several quarters we will begin to see improved results in this segment based on recent changes and investments we have made.”

Campanelli noted RCM recently closed contracts with several new large utility clients and considerably improved its engineering segment backlog and pipeline from this time last year. RCM’s specialty healthcare segment also won several contracts that it believes will positively affect the fourth quarter and beyond.