Let me now give you a brief overview of our financial performance for Q2. Q2 revenue was $39.1 million, down 13% from $44.9 million for last year’s Q2. Foreign currency exchange rate differences did not have a meaningful impact on revenue. For comparative purposes, it is important to note that last year’s Q2 included $1.4 million revenue contribution from our Asia operations.
Putting the revenue for the quarter into context, in local currency we saw a 4% decrease in US revenue mainly as a result of the revenue impact of the bookings decline in our US operations throughout the first half of fiscal 2012. A 1% increase in Canadian revenue essentially flat with last year’s Q2, a 48% decline in UK revenue in large part attributable to the expected impact of our restructuring actions to scale back our UK operations to focus on core markets and key solution areas, a 26% increase in France driven primarily by continued success in selling to new and existing clients across several industry sectors and a 3% decrease in Germany driven primarily by the revenue impact of the bookings decline in our German operations throughout the first half of fiscal 2012.
Operating income for Q2 was $2.1 million, compared with $874,000 for last year’s Q2. Q2’s operating income included a credit and restructuring and other charges of $57,000 compared with $679,000 in restructuring and other charges for last year’s Q2.
Net income for Q2 was $1.6 million or $0.03 per fully diluted share compared with $343,000 or $0.01 per fully diluted share for last fiscal year’s Q2. At December 31st, 2011, we had $14.1 million in cash and $8.4 million in outstanding debt and were in compliance with the financial covenants under our credit agreement.Cash provided by operations for Q2 was $3.3 million, consistent with $3.3 million for last year’s Q2. Non-GAAP adjusted EBITDA with restructuring and other charges added back was $3.8 million for the quarter compared with $3.7 million for last year’s Q2. Read the rest of this transcript for free on seekingalpha.com