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US – Hudson revenue falls less than forecast

February 21 2013

Revenue fell at Hudson Global Inc. (NASD: HSON) across geographies in the fourth quarter and full-year 2012. The New York-based professional staffing provider reported total fourth-quarter revenue fell 17.3 percent to $184.3 million. However, the decline was not as much as the 21 percent to 24 percent estimated in guidance from the company released in November.

  • The biggest decline was in Asia Pacific revenue, which fell 23.6 percent to $63.5 million in the fourth quarter. Demand in the region slowed throughout the year because of increasingly cautious hiring activity in response to the economic environment, according to Hudson.
  • Americas revenue fell 17.5 percent to $39.5 million in the fourth quarter. And gross margin percentage narrowed to 23.8 percent from 28.7 percent in the year-ago quarter. Hudson cited slower RPO growth in the Americas along with reduced demand in legal services.
  • Europe revenue fell 11.4 percent to $81.3 million in the fourth quarter, the smallest decline among the segments. The prolonged economic downturn in Europe also weighed on permanent placement and temporary contracting, according to the company.

Fourth-quarter gross margin for the company as a whole narrowed to 36.3 percent from 38.0 percent a year ago.

The company also announced restructuring efforts continue, and announced a charge of $231,000 in the fourth quarter. Headcount was down by 22 percent year over year in the fourth quarter in Asia and headcount was down 15 percent in Europe, according to the company.

Hudson posted loss of $343,000 in the fourth quarter compared to net income of $3.3 million in the fourth quarter of last year.

Hudson Global Inc. (NASD: HSON)

For the fourth quarter ended Dec. 31, 2012, compared with the same period in 2011.
 Revenue: $184.3 million, -17.3 percent
 Net loss: $343,000 vs. net income of $3.3 million

For the fiscal year ended Dec. 31, 2012, compared with the previous year.
 Revenue: $777.6 million, -16.7 percent
 Net loss: $5.3 million vs. net income of $10.9 million

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