REMX ,,, RemedyTemp Second-Quarter Loss Narrows
Wednesday May 11, 5:03 pm ET
RemedyTemp Posts Narrowed Second-Quarter Loss on Revenue Growth, Improved Margins
ALISO VIEJO, Calif. (AP) -- Professional staffing company RemedyTemp Inc. on Wednesday said it posted a narrower second-quarter loss than in the prior-year period, helped by revenue growth in its RemX unit and improved margins.
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The company's loss declined to $1.4 million, or 15 cents per share, from a loss of $4 million, or 45 cents per share, a year earlier. Revenue increased 9 percent to $125.3 million from $115.4 million in 2004.
Gross margin for the quarter grew to 19.8 percent from 16.7 percent last year.
"The positive second-quarter performance can best be attributed to a more stable pricing environment, improved workers' compensation experience and a strategic shift in business mix," said Greg Palmer, president and chief executive, in a statement.
The company said revenue generated by its RemX unit, which provides temporary financial and accounting, information technology and high-end clerical staffing, advanced 88 percent over last year. The division now accounts for 9 percent of the company's total revenue, compared with 5 percent in 2004. RemedyTemp's direct-hire business more than doubled in revenue, reflecting generally improving business conditions.
The company forecast a third-quarter pretax loss of $900,000 to $1.2 million, compared with a loss of $1.2 million a year earlier. RemedyTemp said it expects revenue to be flat to down 5 percent compared with the $129.3 million a year ago.
Shares of RemedyTemp rose 14 cents to close at $9.79 on the Nasdaq.
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