RCM Technologies, Inc. Announces Preliminary Second Quarter Results
PENNSAUKEN, N.J., June 29, 2012 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (RCMT) today announced that primarily due to unexpected and extended client procedural delays in awarding certain engagements under an existing contract with a major North American utility, the Company's second quarter revenues and operating income will fall short of its expectations. The Company anticipates revenues in the range of $35.0 to $36.5 million and operating income in the range of 1.0% to 3.0%.
Leon Kopyt, Chairman and CEO of RCM, commented: "As we previously communicated, the gradual ramp-up of work by our client and the unpredictability of longer award release cycles can have an adverse impact on our revenues. Although we are disappointed with the developments that took place during our second quarter, we continue to be optimistic with the level and scope of the work proposed for our major North American utility client as evidenced by a recent award of a $19 million engagement to commence early in our third quarter. This engagement was originally expected to commence sometime in the second quarter. We believe that the Company should otherwise perform as expected in the second quarter."
RCM Technologies, Inc. is a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced information technology and engineering services. RCM is an innovative leader in the delivery of these solutions to commercial and government sectors. RCM is also a provider of specialty healthcare services to major health care institutions and educational facilities. RCM's offices are located in major metropolitan centers throughout North America. Additional information can be found at www.rcmt.com .
The Statements contained in this release that are not purely historical are forward-looking statements within the Private Securities Litigation Reform Act of 1995 and are subject to various risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. These statements often include words such as "may," "will," "expect," "anticipate," "continue," "estimate," "project," "intend," "believe," "plan," "seek," "could," "can," "should" or similar expressions. These statements are based on assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate in these circumstances. Forward looking statements include, but are not limited to, those relating to demand for the Company's services, expected demand for our services and expectations regarding our revenues, the Company's ability to continue to utilize goodwill, to continue to increase gross margins, to achieve and manage growth, to develop and market new applications and services, risks relating to the acquisition and integration of acquired businesses, the ability of the Company to consummate acquisitions as to which it executes non-binding letters of intent, demand for new services and applications, timing of demand for services, industry strength and competition and general economic factors. Investors are directed to consider such risks, uncertainties and other factors described in documents filed by the Company with the Securities and Exchange Commission.
CONTACT: RCM Technologies, Inc. 2500 McClellan Avenue Pennsauken, NJ 08109 Tel: 856.356.4500 Fax: 856.356.4600 firstname.lastname@example.org www.rcmt.com Corporate Contacts: Leon Kopyt Chairman, President & CEO Kevin D. Miller Chief Financial Officer
Source: RCM Technologies, Inc. 2012 GlobeNewswire, Inc.