Professional staffing provider Resources Connection Inc. (NASDAQ: RECN), which operates as Resources Global Professionals, reported revenue fell 14.4% in its fiscal first quarter ended Aug. 29. The decline was 15.7% on a constant currency, same-billable day basis.
The Irvine, California-based company said the decrease in revenue was driven by the impact of the Covid-19 pandemic. But early signs of stabilization are appearing.
Resources Connection’s gross margin improved.
| (US$ thousands) | Q1 2021 | Q1 2020 | % change | % constant currency |
| Revenue | $147,346 | $172,225 | -14.4% | -15.7% |
| Gross margin | $57,897 | $67,503 | -14.2% | |
| Gross margin percentage | 39.3% | 39.2% | ||
| Net income | $2,284 | $4,939 | -53.8% |
“As announced in early September, we are also well underway with our European restructuring plan which will enhance account and revenue focus, streamline operations and accelerate virtual delivery,” Resources Connection CEO Kate Duchene said in a statement. “Looking ahead, we are encouraged by early signs of stabilization, including pipeline pick-up and revenue trend improvement.”
Revenue by geography
| (US$ thousands) | Q1 2021 | Q1 2020 | % change | % constant currency, billing day adjusted |
| North America | $120,614 | $140,376 | -14.1% | -15.3% |
| Asia Pacific | $10,440 | $13,086 | -20.2% | -19.4% |
| Europe | $16,292 | $18,763 | -13.2% | -16.5% |
North American first-quarter revenue fell 14.1% but was partially offset by the acquisition of Veracity.
Share price and market cap
Shares in Resources Connection were down 6.1% to $11.54 as of 12:14 p.m. Eastern time, 33.26% above its 52-week low. The company had a market cap of $398.5 million.