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Hudson revenue falls, exploring sale of division

May 01 2014

Hudson Global Inc. (NASD: HSON) reported revenue fell 2.3 percent in the first quarter to $161.9 million. The decline was 1.4 percent in constant currency. However, first-quarter gross margin rose to 35.5 percent from 34.2 percent in the year-ago quarter.

The New York-based professional staffing firm also announced it is exploring a possible sale of its Legal eDiscovery business. The division provides electronic legal discovery services as well as managed document review and attorney staffing.

Americas revenue at Hudson fell 27.8 percent year over year in the first quarter to $26.98 million. In Hudson Europe, the company’s largest division, revenue rose 8.7 percent to $78.6 million. Asia Pacific revenue edged up 0.4 percent to $56.4 million.

The New York-based professional staffing firm posted a net loss of $4.5 million in the first quarter compared to a net loss of $8.2 million in the first quarter of the previous year. This year’s first quarter included restructuring charges of $114,000 compared with $2.0 million in restructuring charges in the first quarter of 2013.

The company expects second quarter 2014 revenue of between $165 million and $175 million.

Hudson is fighting a proxy battle led by investment firm Lone Star Value Management LLC, which holds approximately 7.4 percent of the outstanding common stock.

Shares in Hudson fell 1.41 percent in early afternoon trading to $3.50 and Hudson has a market cap of approximately $116.85 million, according to Google.

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