Resources Connection Posts 1Q Loss; Shares Fall
HARTFORD, Conn. (AP) ¿ Shares of Resources Connection Inc. fell sharply in premarket trading Friday, a day after the accounting and finance staffing company posted a fiscal first-quarter loss, widely missing Wall Street expectations.
Resources Connection recorded a loss of $7.2 million, or 16 cents per share, down sharply from a profit of $12.5 million, or 27 cents per share, in the first quarter of 2008.
Expenses for the quarter included $7 million related to the departure of two senior executives, the company said.
Revenue slid to $118.3 million from $207.3 million.Analysts surveyed by Thomson Reuters expected a loss of 4 cents per share on revenue of $119.8 million for the quarter ended Aug. 29. Shares of Resources Connection dropped $1.83, or 10.8 percent, to $15.07 ahead of Friday's market open. The stock has ranged from $12.70 to $22 over the past year. "Our first-quarter results are reflective of a slowly recovering global economy and, to a lesser extent, the seasonal impact of vacations," Resources Connection CEO Don Murray said in a statement.
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