Irvine-based Resources Connection Inc., a provider of consultants to companies on a project basis, reported a profit that met Wall Street’s expectations for the recently ended quarter but warned of a steep revenue drop for the current one.
The company posted a profit of $9.5 million for the three months through November, in line with what analysts had expected.
Revenue fell 8% to $190.2 million on an 11% drop in U.S. revenue and flat global sales.
Analysts were looking for $198.3 million in sales.
For the current quarter through February, Resources Connection warned Wall Street of a shortfall in its expected revenue.
In a conference call, Resources Connection said it sees revenue of $167 million for the current quarter, versus the $183 million expected by Wall Street.
The company didn’t give a profit outlook for the current quarter.
Analysts on average expect the company to report a profit of about $6.8 million.
Resources Connection provides accounting, human resources and legal professionals who work at companies on a temporary basis.
The downturn is a double-edge sword for Resources Connection as some companies turn to consultants to cut costs but others quit using them altogether.
Chief Executive Thomas Christopoul said in a statement that the company is working hard to get through the downturn.
“The current financial crisis is a test of the resolve of our people,” Christopoul said. “Everyone at Resources is working harder today to develop business and help our clients through this difficult economic environment, while at the same time remaining conservative with respect to discretionary costs.”
The company’s shares were down 3% in afterhours trading on a market value of about $700 million.
