Resources Connection Fiscal 3Q Profit Falls

IRVINE, Calif. (AP) — Resources Connection Inc., which provides staffing services for accounting and finance firms, on Tuesday said its earnings fell 76 percent as companies cut back on labor costs amid the weak economy.

For the quarter that ended Feb. 28, Resources Connection earned $2.1 million, or 5 cents per share, compared with $8.7 million, or 19 cents per share, in the year-ago quarter.

Revenue fell 23 percent to $156 million. Resources Connection said that U.S. revenue fell 24 percent when compared with the prior quarter, and international revenue fell almost 21 percent.

Analysts polled by Thomson Reuters had expected a higher profit of 7 cents per share on $165.6 million in revenue.

Resources Connection did not give guidance for the current quarter, but predicted that the economy will continue to "challenge" the company. The company also said it is working to consolidate some offices in the next few months, and will record a $3.4 million charge in the fourth quarter for related lease abandonment and severance costs.

Shares fell 39 cents to close earlier at $15.59.