Shares of Irvine-based Resources Connection Inc., a provider of accountants, lawyers and other professionals to companies on a project basis, reported a smaller than expected quarterly loss Wednesday while sales came in shy of expectations.
For the three months through February, Resources Connection reported a loss minus charges of $464,000, versus a profit of $2.1 million a year earlier.
Wall Street analysts were expecting a loss of $928,000.
Revenue came in at $125.3 million, down 20% from a year earlier and shy of the $127 million analysts were expecting on average.
The company’s business has been hit by corporate retrenching, which has cut projects and the need for outside consultants.
Many expect the company to benefit from an economic rebound as companies tap consultants before making full-time hires.
Resources Connections showed some signs of improvement in the recently ended quarter.
Revenue rose 31% from the prior quarter, driven by an 8.6% quarterly gain in U.S. sales.
International sales continued to slump with an 11% yearly decline and a 31% quarterly decline.
The company didn’t offer an outlook for the current quarter but said, “We expect to see sequential and quarter-over-quarter revenue growth.”
