IT Staffing Report: June 11, 2015

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Volt Information Sciences net revenue falls 12% in fiscal Q2

Volt Information Sciences Inc. (NYSE MKT: VISI) reported net revenue fell 11.7% to $385.2 million in its fiscal second quarter ended May 3. Staffing services represent a majority of Volt’s revenue at $362.3 million; staffing services revenue fell 10.9% compared to the same quarter last year.

The company cited lower demand for technical skill sets and, to a lesser degree, lower demand for non-technical administrative and light industrial skill sets. Revenue also decreased, according to the company, partially because of continued focus on reducing business with customers where profitability or contract terms were unfavorable.

The net loss included special items related to impairments of $5.4 million, foreign exchange loss of $1.6 million and other special items of $1.9 million, including the settlement of a lawsuit, shareholder and board related costs and restructuring charges.

Volt sold its computer systems segment to NewNet Communication Technologies LLC in the first quarter of fiscal 2015. The loss from discontinued operations, net of taxes, was $4.9 million in the second quarter of 2014.

“While I am disappointed with our overall revenue performance, some of the decline in our revenues, as well as the sequential decline in our average daily revenues in our North American staffing business, were due to our own actions to exit unprofitable business and our disciplined approach to new customer acquisition,” said President and CEO Ron Kochman. “Although I am pleased with our progress on these fronts, our revenues were also impacted by softer demand trends and delayed projects with some customers.”