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Resources Connection’s Q4 Gross Margin Rises

July 13 2012

Resources Connection Inc. (NASD: RECN), a provider of staffing and other services, reported gross margin rose to 40.2 percent in its fiscal fourth quarter ended May 26, 2012, from 38.1 percent in the fourth quarter of last year.

However, fourth-quarter revenue was roughly flat at the Irvine, Calif.-based firm that provides finance/accounting, legal and information technology staffing and other services. Resources Connection posted fourth-quarter revenue of $145.5 million compared to revenue of $145.7 million in the year-ago quarter. U.S. revenue rose 4.6 percent in the fourth quarter but international revenue fell 11.7 percent.

Full-year revenue rose 4.8 percent to almost $571.8 million while full-year gross margin narrowed to 38.3 percent from 38.6 percent in the year-ago quarter.

Resources Connection net income rose 64.7 percent on a year-over-year basis in the fourth quarter to $8.9 million. For the full year, net income rose 65.5 percent to $41.1 million. The company reported net income was impacted by an assessment that it would not have to pay earn-outs for its 2009 acquisition of public relations firm Sitrick and Company Inc. and corporate restructuring advisory firm Brincko Associates Inc.

Resources Connection Inc. (NASD: RECN)
 For the fiscal fourth quarter ended May 26, 2012, compared with the same period in the previous fiscal year.
 Revenue: $145.5 million, -0.1 percent
 Net income: $8.9 million, +64.7 percent

For the fiscal year ended May 26, 2012, compared with the previous fiscal year.
 Revenue: $571.8 million, +4.8 percent
 Net income: $41.1 million, +65.5 percent 

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