Irvine-based Resources Connection Inc., which provides accountants, lawyers and other consultants to companies on a project basis, kicked off the local earnings season with a bomb Wednesday.
The company reported a loss of $6.3 million for the three months through May 30, versus a profit of $15.9 million a year earlier.
Wall Street analysts were expecting a profit of $1.8 million
Resources Connection reported sales of $132 million for the period, down 44% from a year earlier and well below the $143.6 million analysts were expecting.
The company’s shares were off 8% in afterhours trading on a market value of $790 million.
Resources Connection blamed the worse-than-expected results on the down economy, in which companies have cut back on the use of outside professionals.
“Given the global economic climate, this has been the most challenging year in the history of Resources,” Chief Executive Thomas Christopoul said.
He offered some indication of improving conditions, saying the company is starting to see clients talk about undertaking larger projects that would require consultants from Resources Connection.
But the “macroeconomic environment is still causing many companies to approach project work cautiously,” Christopoul said.
The company didn’t offer projected results for the current three months through August.
