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US – Hudson Revenue Falls 17%, Firm Restructuring

July 31 2012

Second-quarter revenue fell 17.2 percent year-over-year at Hudson Global Inc. (NASD: HSON) to $204.8 million. The New York-based staffing provider also reported a restructuring charge of $5.1 million in the second quarter that included consolidating five offices around the globe and eliminating 160 positions.

Hudson Global is the new name for Hudson Highland Group Inc. The change took place during the first quarter of 2012. Hudson is undergoing a strategic transformation to direct resources to high growth areas including RPO and eDiscovery, optimize operations in underperforming markets and streamline its back office and business processes.

The decline in second-quarter revenue was only 13.8 percent in constant currency.

“Our second quarter performance continued to be challenged by deteriorating global economic conditions,” Chairman and CEO Manuel Marquez said.

“During the quarter, we took substantive actions to accelerate our strategic transformation and better navigate the economic environment we face today,” Marquez said. “We focused on key businesses and made important progress in streamlining our operations.”

Second-quarter revenue fell in all of Hudson’s segments.

  • Hudson Americas revenue fell 10.7 percent in the second quarter to $45.5 million from $50.9 million in the year-ago quarter.
  • Hudson Asia Pacific second-quarter revenue fell 20.1 percent to $76.9 million, but was down 16.6 percent in constant currency.
  • Hudson Europe second-quarter revenue fell 17.7 percent to $82.4 million, bust was down 12.9 percent in constant currency.

Second-quarter gross margin for the company narrowed to 37.6 percent from 38.6 percent in the year-ago quarter.

Hudson posted a second-quarter net income of $394,000, compared to $4.2 million in the year-ago period.

The company estimated third-quarter revenue will be down more than 20 percent on a year-over-year basis at prevailing exchange rates.

Hudson Global Inc. (NASD: HSON)
 For the second quarter ended June 30, 2012, compared with the same period last year.
 Revenue: $204.8 million, -17.2 percent
 Net income: $394,000, -90.7 percent

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