IT Staffing Report: Feb. 13, 2014

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Kforce announces realignment, Q4 revenue up 12%

Kforce Inc. (NASD: KFRC) reported a net loss of $8.2 million in the fourth quarter compared to net income of $6.1 million in the same period last year. However, fourth-quarter revenue rose 12.3 percent at the Tampa, Fla.-based professional staffing firm to $302.9 million. And Kforce posted net income for full-year 2013 compared to a net loss in 2012.

The company announced a realignment in the fourth quarter that included pretax charges related to severance, benefits, bonus and other costs of $11.9 million. Kforce also reported a pre-tax impairment charge of $14.5 million in its government solutions business because of a decision to narrow the scope of offerings and focus on prime solutions-based services.

Technology staffing, Kforce’s largest division by revenue, led growth. Technology revenue rose 17.9 percent in the fourth quarter to $197.6 million. Much of the growth was in technology flexible staffing revenue, which rose 18.3 percent to $193.2 million. Technology search revenue edged up 0.1 percent to $4.3 million in the fourth quarter.
Finance and accounting revenue rose 7.1 percent in the fourth quarter to $62.8 million. And health information management revenue rose 7.5 percent in the fourth quarter to $20.9 million.

On the other hand, government solutions revenue fell 10.3 percent in the fourth quarter to $21.7 million.

Kforce’s gross margin for the entire company narrowed to 31.7 percent in the fourth quarter from 32.8 percent in the year-ago quarter.

Full-year 2013 revenue rose 6.4 percent to $1.15 billion. And full-year net income was $10.8 million compared to a net loss of $13.7 million in 2012.

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