Connecting to LinkedIn...

Blank

RCM Technologies grows Q2 operating income by 76.5% over prior year

RCM Technologies reported revenues of $49.5 million for the thirteen week period ended June 28, 2014, a 16.8% increase over $42.4 million for the thirteen week period ended June 29, 2013 (the comparable prior year period). Operating income was $3.0 million for the thirteen week period ended June 28, 2014, a 76.5% increase over $1.7 million for the comparable prior year period. Net income for the thirteen week period ended June 28, 2014 was $2.0 million, or $0.15 per diluted share, as compared to $1.5 million, or $0.12 per diluted share, for the comparable prior year period.

The Company reported revenues of $98.1 million for the twenty-six week period ended June 28, 2014, a 17.3% increase over $83.6 million for the twenty-six week period ended June 29, 2013 (the comparable prior year period). Operating income was $5.1 million for the twenty-six week period ended June 28, 2014, a 56.8% increase over $3.2 million for the comparable prior year period. Net income for the twenty-six week period ended June 28, 2014 was $3.2 million, or $0.25 per diluted share, as compared to $2.4 million, or $0.20 per diluted share, for the comparable prior year period.

The thirteen and twenty-six week periods ended June 29, 2013 reflect an increase to net income of $0.5 million resulting from the reduction of a previously unrecognized tax benefit.

Rocco Campanelli, President and Chief Executive Officer of RCM Technologies, commented, "I am gratified that our strategy to develop new clients while expanding our services at existing clients and creating new service offerings has continued to generate excellent results. I am particularly pleased that our Information Technology segment continues to gain market share, posting impressive results and its seventh consecutive quarter of revenue growth over the comparable prior year period. What is even more impressive in our view is that our IT segment, for the first half of 2014, has improved gross margins by nearly 100 basis points and contributed significantly to the overall performance of the Company. Our Engineering group recorded its highest quarterly revenues since the group's inception and its eighth consecutive quarter of revenue growth over the comparable prior year period. Our Specialty Healthcare segment recorded their second highest historic quarterly revenue (second only to their first quarter of 2014)."

Kevin Miller, Chief Financial Officer of RCM Technologies, added, "The revenue and gross profit growth we are delivering across our segments is exciting. Based on our current backlog and pipeline, we are optimistic that both revenues and operating income for the balance of fiscal 2014 will exceed the comparable prior year period. Due to continued positive momentum across all three of our business segments and progress towards our internal working capital objectives, we anticipate cash generation will remain strong in the second half of the year. Consistent with our core focus of disciplined investment and driving returns for shareholders, the Board is considering a number of initiatives including a potential return of excess cash to shareholders in the second half of 2014.

Tags:

Articles similar to

Articles similar to