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NEW YORK, May 7, 2013 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq:HSON), a leading global talent solutions company, today announced financial results for the first quarter ended March 31, 2013.
2013 First Quarter Summary
Revenue of $165.7 million, a decrease of 17.4 percent from the first quarter of 2012, or 16.8 percent in constant currency.
Gross margin of $56.7 million or 34.2 percent of revenue, representing a 22.6 percent decrease from the same period last year, or 22.2 percent in constant currency.
Adjusted EBITDA loss* of $4.9 million, compared with adjusted EBITDA loss of $0.9 million in the first quarter of 2012.
Restructuring charges of $2.0 million in the first quarter of 2013.
EBITDA loss* of $6.6 million, compared with EBITDA loss of $2.2 million in the first quarter of 2012.
Net loss of $8.2 million, or $0.25 per basic and diluted share, compared with net loss of $3.2 million, or $0.10 per basic and diluted share, for the first quarter of 2012.
* EBITDA and adjusted EBITDA are defined in the segment tables at the end of this release.
"Global market conditions continue to be harsh," said Manuel Marquez, chairman and chief executive officer at Hudson. "As we expected, this had an impact on our first quarter 2013 results. Notwithstanding this, we are confident we are making good progress on our strategy. We believe our critical foundational work will ultimately allow us to better withstand the economic down cycles and serve as an engine for stronger performance in the future."
"While focusing on our strategy and top line action plans, managing our costs and liquidity will remain equally important," said Mary Jane Raymond, chief financial officer at Hudson.
Regional Highlights Americas
Hudson Americas' gross margin decreased 31 percent in the first quarter compared with the prior year period due to declines in both temporary contracting and permanent recruitment. Legal eDiscovery continued to see lower demand levels with gross margin down 33 percent from the period a year ago, while RPO gross margin decreased 37 percent compared with the first quarter of 2012 driven by softer hiring trends. Actions taken to reduce costs delivered SG&A* and headcount reductions of 26 percent and 25 percent, respectively, from the same period a year ago, offsetting 83 percent of the gross margin decline. Adjusted EBITDA loss was $0.4 million for the first quarter, or 1.0 percent of revenue, compared with positive $0.3 million for the quarter a year ago.