Resources Connection, Inc. guided second-quarter revenue to $95 million to $100 million, broadly consistent with first-quarter levels, as the company reported Q1 revenue of $98.1 million, an 18.5% decline on a same-day constant currency basis from the prior year quarter. Interim CFO Jessica Block said Q2 gross margin is expected between 36% and 37%, reflecting the impact of the Thanksgiving holiday, with run-rate SG&A expense of $40 million to $42 million and non-run rate and noncash expenses of $2 million to $3 million. Q1 gross margin was 37.4% and adjusted SG&A expense was $40.3 million, while adjusted EBITDA for the quarter was negative $3.6 million. Segment revenue included $38.6 million from On-Demand Talent, $32.4 million from Consulting, $17.1 million from Europe and Asia Pacific, and $10 million from Outsourced Services, and the company ended the quarter with $61.2 million in cash and cash equivalents and no outstanding debt. CEO Roger Carlile said revenue and profitability remain below the company's long-run potential, citing cautious client decision-making, longer sales cycles and Consulting segment utilization in the high 50s, and announced that Trisha Jenks was promoted to Chief Accounting Officer while Jessica Block stepped in as Interim Chief Financial Officer following Jenn Ryu's 6.5 years as CFO.
Resources Connection IncQ1 revenue fell 18.5% and adjusted EBITDA was negative $3.6M, with Q2 guidance roughly flat and gross margin pressured.
