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US - Kforce reports strong technology demand, Q2 revenue up

July 31 2013

Technology staffing led second-quarter growth at Kforce Inc. (NASD: KFRC). The Tampa, Fla.-based professional staffing provider reported a year-over-year increase in second-quarter revenue of 3.5 percent to $283.7 million. The revenue number was above the top end of its guidance of $281 million.

“Demand for our services, particularly in technology, remains strong,” Chairman and CEO David Dunkel said in a press release. “We also continue to see a secular shift where our clients are increasingly seeking a higher degree of variability in the composition of their workforce as they look to mitigate economic uncertainty and the increasing complexity and cost of employment.”

Technology revenue rose 5.1 percent in the second quarter to $180.6 million. The growth came mostly in flexible staffing where technology revenue rose 3.6 percent to $270.4 million. Technology direct-hire revenue rose 0.8 percent to $13.3 million.

Second-quarter revenue also rose 8.1 percent year over year in Kforce’s government solutions division to $23.3 million.

However, health information management revenue fell 5.1 percent to $19.0 million from $20.0 million in the second quarter of last year.

Finance and accounting revenue — Kforce’s second-largest division — was roughly flat in the second quarter at $60.9 million.

The company’s second-quarter gross margin was unchanged from the same quarter last year at 32.7 percent.

Kforce posted net income of $6.9 million in the second quarter compared to a net loss of $33.2 million in the year-ago quarter. However, the second quarter of 2012 included a goodwill impairment of $65.3 million.

Kforce ranks No. 15 on Staffing Industry Analysts’ 2013 list of largest U.S. staffing firms.

Kforce Inc. (NASD: KFRC)
 For the second quarter ended June 30, 2013, compared with the same period in the previous year.
 Revenue: $283.7 million, +3.5 percent
 Net income: $6.9 million compared to a net loss of $33.2 million


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