Aliso Viejo-based RemedyTemp Inc. said Wednesday that industry softness and its trimming of low-profit contracts hit revenue in the past quarter.
Revenue at the temporary staffing company dipped 5.4% to $122.3 million in the quarter ended July 3, compared to a year earlier. RemedyTemp said it was expecting a 5% decline.
The company’s net loss narrowed 8% to $1.4 million in the period. Excluding a one-time charge related to the potential settlement of payroll tax issues, RemedyTemp’s loss would have been $417,000.
Chief Executive Greg Palmer said the sales decline came from the “elimination of a number of lower-margin, high-risk customer accounts.”
He also cited the industry-wide softening that began late in the prior quarter, “principally in the light industrial sector.”
On the flip side, RemedyTemp said its profit margin rose to 20.2% versus 18.4% a year earlier.
The company expects to post up to $500,000 in pre-tax profits for the quarter ending Oct. 2. Revenue is slated to drop 12% to 15%.
