GEE Group (NYSEAMERICAN: JOB) reported lower revenue in its fiscal second quarter as companies delayed the initiation of projects requiring contingent labor, among other factors. It said it is cautiously optimistic about potential economic and labor improvements in the “near future, ”according to an SEC filing and noted revenue and orders rose in April. Still, results for the current fiscal year will likely be lower than the previous.
Revenue fell 27.8% to $28.1 million in GEE’s fiscal second quarter ended March 31.
“We are in the midst of a very difficult macroeconomic environment that has severely impacted client demand for the use of contingent labor and permanent hires,” Chairman and CEO Derek Dewan said in a press release.
Dewan noted the US staffing industry as a whole has experienced declines in overall volume and financial performance.
“However, we are seeing some positive leading indicators in the current quarter and are hopeful for continuing improvement of the demand environment,” he said.
The company provides staffing in IT, finance/accounting, office/clerical, engineering and industrial. It also staffs data entry assistants who specialize in electronic medical records.
In April, the Jacksonville, Florida-based firm reported the completion of a strategic review and will put in place an acquisition strategy.
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Share price
Shares in GEE Group were down 2.03% to 31.4 cents today as of 12:12 p.m. Eastern time. They were 5.59% above their 52-week low.