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Kforce not satisfied with Q1 results

May 01 2013

First-quarter revenue fell 1.0 percent at Kforce Inc. (NASD: KFRC) to $265.6 million. Chairman and CEO David Dunkel said the company is not satisfied with the results.

The Tampa, Fla.-based professional staffing firm forecasted revenue of between $268 million and $274 million for the first quarter.

“The firm’s results in the first quarter did not meet our expectations and we are not satisfied,” Dunkel said. “Our technology and government businesses performed near anticipated levels; however, due to shortfalls primarily in our finance and accounting and health information management businesses, our top line results were slightly below our expectations.”

However, the company’s investment in sales associates at the end of last year is taking hold and revenue growth is expected in the second half of the year, he said.

First-quarter technology revenue rose 1.2 percent to $167.6 million. But revenue fell in other segments:

  • Finance and accounting: Down 6.2 percent to $56.5 million
  • Health information management: Down 4.2 percent to $18.6 million
  • Government solutions: Down 0.7 percent to $22.8 million

Kforce’s total flexible staffing revenue — which is comprised of approximately two-thirds technology staffing — fell 1.3 percent to $254.1 million in the first quarter from $257.3 million in the first quarter of last year, primarily as a result of typical year-end project ends and slower than expected rebuild in its finance and accounting and health information management businesses.

First-quarter search revenue rose 4.9 percent to $11.6 million from $11.0 million in the same quarter last year.

The first quarter of this year had one less billing day than the first quarter of 2012.

Gross margin improved to 31.4 percent from 30.1 percent in the first quarter of 2012.

Kforce’s first-quarter net income fell 24.1 percent to $3.1 million from $4.1 million in the year-ago quarter.

Kforce Inc. (NASD: KFRC)
For the fourth quarter ended March 31, 2013, compared with the same period in the previous year.
Revenue: $265.6 million, -1.0 percent
Net income: $3.1 million, -24.1 percent

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