First-quarter revenue rose 5.1% at RCM Technologies Inc. (NASD: RCMT) to $49.1 million from $46.7 million in the first quarter of last year amid strength in its engineering business.

Gross margin improved to 25.9% in the first quarter compared with 22.7% in the year-ago quarter.

Net income fell 68.1% to $1.8 million in the first quarter from $5.6 million in the first quarter of last year. The company said it received $9.8 million from a legal settlement in the first quarter of 2009 that boosted its bottom line.

RCM also reported it closed its Oracle business unit in Southern California. The unit sold Oracle software applications and provided implementation, hosting and maintenance services for Oracle and related software.

RCM Technologies Inc. (NASD: RCMT)
For the first quarter ended April 3, 2010, compared with the same period in 2009.
Revenue: $49.1 million, +5.1%
Net income: $1.8 million, -68.1%