Resources Connection Q2 Profit Rises

(RTTNews) - Resources Connection Inc. (RECN), Thursday said its second-quarter profit rose to $10.56 million or $0.33 per share from $8.14 million or $0.27 per share last year.

Revenues for the quarter grew 20.5% to $188.8 million from 156.7 million last year.

U.S. revenues increased 24.7%, while European revenue inched up 0.9% and Asia Pacific rose increased 4.4% for the second quarter.

"We are extremely pleased by the momentum in our business now," said Kate Duchene, president and chief executive officer. "I attribute the improving results to three important changes in our Go To Market efforts -- the client service and technical sales teams spend more time in front of clients, we have improved the alignment of our incentive systems to sales growth and velocity in our sales efforts has been delivered by a focused business development team."

Gross margin improved to 38.9% from 37.9% a year ago due to improvement in the pay rate to bill rate ratio and lower costs in the company's self-insured medical program.