Boston, MA 08/14/2014 (wallstreetpr) – RCM Technologies, Inc. (NASDAQ:RCMT) posted revenues of $49.5 million in its second-quarter results. It was up by 16.85 as compared to revenues of $42.4 million in 2Q2013. The operating income rose 76.5% to $1.7 million. The net income came at $2.0 million as compared to $1.5 million in 2Q2013. It accounts for the earnings of $0.15 per diluted share comparable to $0.12 in 2Q2013. The net income came higher due to the lower unrecognized tax benefits
The successful strategy
RCM Technologies, Inc. (NASDAQ:RCMT) strategy to acquire new clients while serving the existing clients worked well in the second-quarter. The new service offerings expanded the client base. The information technology segment of RCM is gaining popularity in the industry. The market share of the segment rose in the second-quarter. It added to the better performance sequentially. The second-quarter of 2014 becomes the seventh consecutive quarter reflecting growth in revenues.
Strength in individual segments
The gross margins in the IT segment in the first two quarters have improved by nearly 100 basis points. The engineering group posted the highest quarterly revenues since the inception time. It is the eight consecutive quarter with continued revenue growth for the engineering group. The other segment, Specialty Healthcare segment followed the trend and posted the second highest quarterly revenues.
The management view
CEO, Kevin Miller said that the company is delighted with the growth of gross profit and revenue in the different segments. The revenue and the operating income are expected to beat the results of prior year period. There is positive growth in all the three business segments of RCM Technologies, Inc. (NASDAQ:RCMT). The cash generation of RCM is expected to come strong in the rest of the year. The focus will remain on disciplined investment. The key is to enhance the performance in the rest of year and drive returns for shareholders. The board is reviewing certain plans to return the excess cash to shareholders.
