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Volt Information Sciences Provides Update on Second Quarter Business Performance

Volt Information Sciences Provides Update on Second Quarter Business Performance

Volt Information Sciences, Inc. has provided a business update and reported selected unaudited financial information for its fiscal 2011 second quarter. The Company noted that, due to a previously announced accounting review, all numbers presented in this release are estimates.

Steven Shaw, Volt’s President and Chief Executive Officer, stated, “The Staffing Services Segment, which accounts for a majority of the Company’s total sales, had approximately $450 million of sales in the fiscal second quarter 2011 compared to approximately $393 million for the same period in 2010. On average, approximately 30,900 U.S. staffing employees were on assignment in the quarter, compared to approximately 26,900 in the second quarter of 2010. We are pleased with the nearly 15% increase in revenue, and the overall performance of the Staffing Segment.”

Cash and cash equivalents decreased in the three months ended May 1, 2011. This was primarily the result of the increase in Staffing revenues and related receivables, as payroll expenditures precede collections from customers, and also restatement and related investigation costs, for which payments were higher although expenses decreased in the second quarter compared to the first quarter.

While the Telecommunications Services and the Printing and Other Segments together sustained a small loss in the second quarter of 2011, these segments showed an improvement over the prior year’s second quarter. Results for the Computer Systems Segment will be reported after the accounting review is completed and financial statements are finalized.


On May 1, 2011, the Company had cash and cash equivalents of approximately $38 million and an additional $30 million of cash set aside as collateral for foreign currency credit lines. The Company also had approximately $90 million available from its accounts receivable securitization program. The Company’s consolidated borrowings were approximately $83 million at May 1, 2011 which includes approximately $23 million of foreign currency borrowings fully collaterized by restricted cash, as described above, and $60 million drawn under the $150 million securitization program.

The Company believes that it has more than ample liquidity to meet its current business requirements.


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