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Volt Information Sciences Provides Update on First Quarter Business Performance

Volt Information Sciences Provides Update on First Quarter Business Performance

Volt Information Sciences, Inc. has provided a business update and reported selected unaudited financial information for its fiscal 2012 first quarter ended January 29, 2012. 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 $455 million of revenue in the fiscal first quarter 2012 compared to approximately $442 million for the same period in 2011. The first quarter 2012 Staffing Services Segment revenue increase is primarily from customer care solutions services and to a lesser extent from employees on assignment. On average, approximately 31,500 U.S. staffing employees were on assignment in the quarter, compared to approximately 32,300 in the first quarter of 2011, although at higher average billing rates resulting in slightly higher revenue."

The Telecommunications Services and Other segments reported close to break-even operating results for the first fiscal quarters of both 2012 and 2011. Results for the Computer Systems Segment will be reported after the accounting review is completed.


During the first fiscal quarter of 2012, the Company disbursed approximately $10 million in connection with the restatement and related investigations costs while cash of approximately $26 million was provided by all other operating activities, approximately $3 million was disbursed for net capital expenditures and approximately $2 million was disbursed for the acquisition of an additional 10% interest in a foreign subsidiary. Borrowings under the accounts receivable securitization program decreased by approximately $10 million during the first quarter of fiscal 2012 and borrowings under all other credit facilities increased $2 million. The Company transferred approximately $1 million during this fiscal year to restricted cash as collateral for foreign currency borrowings and banking facilities.

On January 29, 2012, the Company had cash and cash equivalents of approximately $46 million and an additional approximately $36 million of cash set aside and restricted as collateral for foreign currency credit lines and banking facilities. The Company also had approximately $70 million available from its accounts receivable securitization program. Excluding the approximately $10 million of non-current debt, the Company’s consolidated borrowings were approximately $106 million at January 29, 2012, which includes approximately $26 million of primarily foreign currency borrowings used to hedge foreign denominated receivables and fully collateralized by the restricted cash, and approximately $80 million drawn under the $150 million securitization program. The approximately $80 million drawn under the securitization program was subsequently increased to approximately $90 million in February 2012.

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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