Daily News

View All News

Volt’s Q3 revenue down 9%, but gross margin improves

September 06, 2019

Volt Information Sciences Inc. (NYSEAMERICAN: VISI) reported revenue fell 9.6% in its fiscal third quarter ended July 28. However, it noted revenue was down 7.1% when measured on a same-store basis excluding currency fluctuations and exited businesses.

Gross margin improved 20 basis points year-over-year; Volt cited improved customer pricing and lower payroll taxes.

The New York-headquartered staffing provider reported net loss narrowed to $6.1 million in the third quarter from a net loss of $11.4 million in the year-ago quarter, primarily driven by improvements in gross margin as well as a 9.1% reduction in selling, administrative and other operating costs.

(US$ thousands) Q3 2019 Q3 2018 % change
Net revenue $233,176 $257,808 -9.6%
Gross margin $35,648 $36,360 -2.0%
Gross margin percentage 15.3% 14.1%  
Net loss ($6,057) ($11,418) nm

Third-quarter revenue fell in North American staffing but rose in the firm’s North American MSP segment. International staffing revenue edged up 0.5%.

Revenue by segment

(US$ thousands) Q3 2019 Q3 2018 % change
North American staffing $193,641 $215,679 -10.2%
International staffing $28,728 $28,579 0.5%
North American MSP $9,555 $6,959 37.3%
Corporate and other $1,856 $7,456 -75.1%
Eliminations ($604) ($865)  

Paul Tomkins stepped down from his role as Volt’s CFO effective Aug. 23 to pursue other opportunities. Hebert Mueller took over the position the following day; he most recently was CFO and executive VP at professional staffing firm Resources Connection Inc. (NASDAQ: RECN).

In addition, Bob Houghton joined the firm last month as chief information officer, based at the company’s corporate office in Orange, California. Houghton has more than 25 years of experience in IT, spending the past eight years at NetApp Inc. where he most recently served as CIO.

The company announced last week that its ticker symbol on the New York Stock Exchange will change to “VOLT” from “VISI” effective Sept. 9.

Quote

“While we experienced revenue headwinds in the third quarter driven primarily from a small percentage of clients, our determined focus on our sales strategy is yielding more wins and expansion opportunities than we have seen in recent years,” said President and CEO Linda Perneau. “The fundamental changes we have made to the bedrock of the organization have far better positioned us for profitable growth.”

Outlook

Volt expects same-store, year-over-year revenue to decline by approximately 4% to 6% in the fourth quarter. The company also expects sequential and year-over-year improvement at the EBITDA line, reflecting improving revenue on a sequential basis from the third quarter of fiscal 2019 and continuing progress on the bottom line.

Share price and market cap

Shares in Volt were down 4.83% to $2.76 at 9.49 a.m. Eastern time; the company had a market cap of $66.61 million, according to FT.com.

Comments

Add New Comment

Post comment

NOTE: Links will not be clickable.