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CDI Corp. Reports 2012 Third Quarter Results

CDI Corp. News Release (10/30/12)

CDI Corp. has reported revenue of $279.4 million for the third quarter ended Sept. 30, up 2.5% compared with the prior-year third quarter. The company reported gross profit margin of 19.6% compared with 21.2% in the same period last year. Operating profit of $9.0 million is reported for the quarter, versus $4.4 million in the prior-year quarter, leading to an operating margin of 3.2% versus 1.6% in the year ago period. Net income of $5.3 million for the quarter compares with net income of $2.8 million in the prior-year quarter.

The company’s professional services staffing segment reported a 4.0% increase in third quarter revenue versus the prior-year third quarter. PSS revenue growth was driven by gains in all three strategic verticals: oil, gas, and chemicals; aerospace and industrial equipment; and high-tech, partially offset by lower revenues in the “other” vertical. Operating profit was $4.5 million during the third quarter of 2012, an increase of 9.7% versus the 2011 third quarter. Improvement in PSS operating profit was driven by lower operating expenses related to the 2011 restructuring as well as by additional expense reductions realized during the quarter.

For the fourth quarter ending Dec. 31, CDI anticipates a revenue increase in the range of 0% to 2% compared with the year-ago fourth quarter.

Kforce Reports Revenues of $270.2 Million for the Third Quarter of 2012

Kforce Inc. News Release (10/30/12)

Kforce Inc. reported revenues from continuing operations for the third quarter of 2012 were $270.2 million, a decrease of 1.4% from the second quarter and an increase of 3.5% over the third quarter of 2011. Kforce reported net income of $9.3 million for the third quarter of 2012, versus $8.9 million for the second quarter and $8.4 million for the third quarter of 2011, a year-over-year increase of 9.7%.

David L. Dunkel, chairman and chief executive officer, says, “The environment for professional staffing and the demand for our services, particularly in technology staffing, continues to be positive. Over the past few quarters, however, revenue growth has slowed as the uncertain economic outlook is dampening demand. The unemployment rate among college-degreed workers is roughly half that of the overall U.S. rate of unemployment, and is substantially lower in several of the skill sets in which Kforce specializes. We continue to see bill rates increase as supply for highly skilled candidates remains tight.”

Michigan’s Jobs Bank May Not Be Open to All

Crain’s Detroit Business (10/28/12) Sherri Welch

Michigan’s revamped talent Web site,, features a new policy blocking recruiters and staffing firms from viewing job seeker profiles due to concerns from job seekers and employers that their résumés were being shopped to employers without their knowledge and that staffing firms were competing with employers for the best candidates. Area staffing firms, like Kelly Services Inc. and Snelling Staffing Services, are concerned about the restricted access to search, as they can post positions but “not search the talent.” However, the Michigan Economic Development Corp. and MichiganWorks are examining staffing firms and recruiters to validate their business practices and restore full access on a case-by-case basis. Nancy Hanoosh, president of the boutique staffing firm Corporate Recruiters Inc., says, “For people who are using (the site) for the right reasons…we really are helping the general public in securing employment.”

Responding to EEOC’s Criminal History Guidance—ASAPro Webinar Tomorrow

Tomorrow afternoon, 3–4 p.m. Eastern time, don’t miss the ASAPro Webinar “How Employers Are Responding to the EEOC’s Criminal History Guidance.” Gerald L. Maatman Jr., Esq., and Pamela Q. Devata, Esq., of Seyfarth Shaw LLP will tell you what information you should consider when making employment decisions, how staffing companies are following EEOC guidance, and which steps you can take to comply with the regulations. This Webinar is free for ASA members and qualifies for 1.0 legal continuing education hour toward ASA certification renewal.