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Volt Information Sciences Provides Update on Fourth Quarter Business Performance

Volt Information Sciences Provides Update on Fourth Quarter Business Performance

Volt Information Sciences, Inc. (OTC: VISI) today provided a business update and reported selected unaudited financial information for its fiscal 2011 fourth quarter ended October 30, 2011. 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 revenue, had approximately $473 million of revenue in the fiscal fourth quarter 2011 compared to approximately $467 million for the same period in 2010. Staffing Services revenue increased approximately 1% for the quarter, and approximately 11% year-to-date, compared to the prior year. On average, approximately 31,900 U.S. staffing employees were on assignment in the quarter, compared to approximately 31,800 in the fourth quarter of 2010. "

The Telecommunications Services segment reported improved results in the fourth quarter 2011 compared to the prior year's quarter with approximately break-even operating income resulting from previously announced exiting of certain business lines. The Other reportable segment reported a small operating income, slightly improved from the small operating income reported in the prior year's quarter. Results for the Computer Systems Segment will be reported after the accounting review is completed.


During the fiscal year 2011, the Company disbursed approximately $46 million in connection with the restatement and related investigations costs while cash of approximately $15 million was provided by all other operating activities, and approximately $12 million was disbursed for net capital expenditures. The Company transferred approximately $4 million during this fiscal year to restricted cash as collateral for new European banking facilities, and borrowings under the accounts receivable securitization program increased by approximately $40 million, although this was subsequently reduced by approximately $10 million in January 2012.

On October 30, 2011, the Company had cash and cash equivalents of approximately $43 million and an additional approximately $34 million of cash set aside and restricted as collateral for foreign currency credit lines and banking facilities. The Company also had approximately $60 million available from its accounts receivable securitization program. Excluding the approximately $10 million of non-current debt, the Company's consolidated borrowings were approximately $113 million at October 30, 2011, which includes approximately $23 million of primarily foreign currency borrowings used to hedge foreign denominated receivables and fully collateralized by the restricted cash, and approximately $90 million drawn under the $150 million securitization program. The approximately $90 million drawn under the securitization program was reduced to approximately $80 million in January 2012.

On January 27, 2012 the liquidity facility of Volt's securitization program was extended from March 15, 2012 to September 15, 2012, and the requirement that the Company provide audited financial statements for its fiscal 2011, 2010 and 2009 years by February 7, 2012 has been extended to September 15, 2012. No amendments were required to any of the Company's or any subsidiary's other credit facilities, including the Company's $42 million bank credit agreement.

The Company believes that it has more than ample liquidity to meet its business requirements currently and for the foreseeable future.


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