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CDI's fourth-quarter, full-year profits rise

February 28 2008

Fourth-quarter profit rose 14.9% at CDI Corp. (NYSE: CDI). The Philadelphia-based staffing company posted net income of $7.8 million, up from $6.8 million in the fourth quarter of 2006.

CDI said fourth-quarter revenue increased 4.9% to $299.0 million from $284.9 million a year ago. That beat analysts' estimated fourth-quarter revenue of $298.82 million.

"Continued strength in global capital spending by clients in our key vertical industries and a generally steady hiring environment produced solid revenue gains," said President and CEO Roger Ballou.

Fourth-quarter gross margin improved to 25.0% from 23.7%.

CDI's largest division, engineering solutions, posted a 12.8% increase in fourth-quarter revenue to $158.6 million amid strong demand in the process and industrial and government services segments as well as in direct hire.

The company's Management Recruiters International division reported a 21.2% increased in revenue to $21.5 million. Meanwhile, its United Kingdom-based AndersElite division registered a 7.6% increase in fourth-quarter revenue to $62.8 million.

CDI's information technology solutions unit, however, reported a 17.8% decline in fourth-quarter revenue to $56.1 million. The company cited decreases in staffing to smaller accounts and a reduction in demand by a large client.

The company also said the fourth quarter included $400,000 in costs related to the sale of its Todays Staffing division to Spherion Corp. (NYSE: SFN) in the third quarter of 2007.

Full-year 2007 net income rose 47.0% to $34.2 million from $23.3 million in 2006. Full-year 2007 revenue rose 6.6% to $1.19 billion from $1.11 billion in 2006.

Full-year gross margin improved to 24.2% from 23.2%.

The company gave guidance of 1% to 3% revenue growth in the first quarter compared with the same period in 2007.

CDI also announced that it will repurchase up to $50 million of its outstanding stock.

CDI Corp. (NYSE: CDI)
For the fourth quarter ended Dec. 31, 2007, compared with the same period in 2006.
Revenue: $299.0 million, +4.9%
Net income: $7.8 million, +14.9%

For full-year 2007 ended Dec. 31, 2007, compared with the previous year.
Revenue: $1.19 billion, +6.6%
Net income: $34.2 million, +47.0%

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