Daily NewsView All News
ClearPoint Business Resources Inc. (NASD: CPBR), a Chalfont PA-based staffing and vendor management system company, posted a wider net loss for the fourth quarter of 2007. This was despite an increase in revenue as it moved ahead with plans to become a staffing franchisor, according to its annual filing with the U.S. Securities and Exchange Commission posted today.
ClearPoint reported a net loss of $6.0 million in its fourth quarter ended Dec. 31, 2007. That compares with a net loss of $1.0 million in the same period last year.
Fourth-quarter revenue, however, rose 78.5% to $52.0 million from $29.1 million in the same period last year.
ClearPoint's acquisition of most of the assets of Florida-based staffing and consulting firm ALS LLC on Feb. 23, 2007, gave revenue a boost. The buy increased full-year 2007 revenue by $37.2 million, according to the company. Total full-year 2007 revenue was $191.7 million, up from $113.9 million in 2006.
However, the company still reported a net loss of $12.4 million for 2007. It reported a net loss of $1.4 million in 2006.
Fourth-quarter gross margin fell to 10.4% from 19.9%. Also, full-year 2007 gross margin shrunk to 13.1% from 18.1% in the previous year.
ClearPoint operates its iLabor vendor management system and formerly ran all its own staffing business providing industrial, engineering, information technology, and healthcare staffing. However, the company in its filing said that it moved a majority of its staffing business to a franchise model. KOR Capital LLC and TZG Enterprises LLC took on the staffing operations in the second half of 2007, but those two deals were ultimately terminated. StaffChex Inc. later bought the staffing customer contracts in the KOR deal.
Optos Capital LLC licensed the staffing contracts formerly under the TZG deal in February, but that agreement was also terminated. The parent company of Select Staffing later struck a deal for those staffing contracts on April 8.
ClearPoint Business Resources Inc. (NASD: CPBR)
For the fourth quarter ended Dec. 31, 2007, compared with the same period in the previous year.
Revenue: $52.0 million, +78.5%
Net loss: $6.0 million vs. net loss of $1.0 million
For full-year 2007 ended Dec. 31, 2007, compared with the previous year.
Revenue: $191.7 million, +68.2%
Net loss: $12.4 million vs. net loss of $1.4 million