Resources Connection Inc. (NASDAQ: RGP), which operates as RGP, announced revenue fell 4.1% on a same-day, constant currency basis in its fiscal third quarter ended Feb. 25, reflecting a softening macroeconomic environment. The growth rate also excludes revenue from the company’s taskforce operations in Europe, which were divested earlier in the fiscal year.
As reported, revenue fell 8.7% to $186.8 million in the third quarter.
“While clients are taking longer with buying decisions related to new projects, we have seen the number of extensions on existing engagements increase significantly, and our overall pipeline remains healthy,” CEO Kate Duchene said.
The company also continues to invest in its on-demand talent platform and digital consulting capabilities, Duchene said.
RGP reported third-quarter revenue performance exceeded the high end of the company’s outlook.
RGP also noted a noncash impairment charge of $3.0 million in the third quarter. It was the result of a goodwill analysis for its Sitrick operating segments, a strategic and crisis communications business.
Share price and market cap
Shares in Resources Connection were down 9.33% to $15.07 as of 1:10 p.m. Eastern time; they set a new 52-week low during today’s session when they reached $14.11, according to FT.com. The company had a market cap of $559.0 million.