R C M Technologies Inc (RCMT) 2008 Q4 法說會逐字稿

Thank you for joining the RCM year end financial results conference. Your host today is MR. Leon Kopyt.

Mr. Kopyt, you may now begin.

Thank you. Good morning and welcome to our year end numbers and fourth quarter numbers. I am joined here by two of my colleagues, Kevin Miller and Art Dell. Art will begin with the Safe Harbor statement, I will make a brief comment, and I will turn it over to Kevin, for sectorial data and other analytical information that we normally provide on our call.

Art.

Good morning. The following is our Safe Harbor statement. Our presentation in this call will contain forward-looking statements. The information contained in the forward-looking statements is based on our beliefs, estimates, and assumptions, and information currently available to us.

The forward-looking statements relate to matters such as estimates used for developing pro forma financial information, the general health and direction of the market for IT and engineering services, our intentions as to changes to our product offerings, our concentration on higher margin service areas, our pursuit of strategic alliances, partnerships, clients, and acquisitions, the increased propensity of existing and potential clients to outsource IT and engineering functions, and anticipated operating performance and financial condition.

The statements reflect our current views with respect to future events, and are subject to a variety of risks, uncertainties, and assumptions, relating to operations and results of operations, competitive factors, and shifts in market demand. If any of these risks or uncertainties materialize, or if our underlying assumptions are incorrect, actual results may vary significantly from expected results.

The following factors will specifically affect our ability to achieve expected results, unemployment and general economic conditions associated with the provision of Information Technology and engineering services and solutions, and placement of temporary staffing personnel. Our ability to attract, train, and retain qualified personnel who possess the skills and experience necessary to meet the staffing requirements of our customers and future customers, our ability to achieve and manage growth, and selecting suitable acquisition candidates, analyzing their businesses accurately, and integrating acquired businesses into our Company, and other risks of our acquisition strategy.

Many other factors also will affect our ability to achieve expected results. The other factors we consider most pertinent are referred to in the periodic reports on Forms 10-K, 10-Q, and 8-K that we file with the SEC. We will be happen to send copies of these documents to you at your request. Otherwise we encourage you to review the documents as they appear on the RCM Technologies website under Investor Relations. Thank you.

I will now turn it back to Leon.

Thank you, Art. I am going to break our usual traditional of not making any comments on the conference call, and share with you a few observations relating to 2008, and also going forward in 2009. Clearly our results for the year reflect the weakness in the number of sectors, especially in the IT division, deteriorating business climate, weakness in demand for software and services have clearly been felt, specifically in the fourth quarter. The continuing uncertainty and instability amplifies the fear, I think in some of our clients and that manifest itself in the deferrals, and replanning, scale down and rebudgeting of certain projects.

I believe that the economic and the business landscape in certain sectors, such as automotive, financial, and banking, has been fundamentally changed. To what extent it has changed, and how long it will persist, I don't think anyone knows. But I think I have exhausted my library of descriptive terminology for the current business and market environment.

Having said that, I believe it is all about a strong foundation and solid fundamentals. 2009 is going to be a defining year, and I think the companies that do well, will be recognized and rewarded for their performance. And it takes a seasoned team and a skilled navigational strategy, to make it safe into the harbor in today's climate.

With the strong management team that we have in place, a solid balance sheet, and a triangular diversity in our business strategy, namely geographically, sectorially, and service offering, we are well-positioned I think to respond to all of the different uncertainties in 2009. I think the beginning of year as we indicated in our press release will have some effect of the, again of this weaknesses in software carrying over from 2008, and restart of some of the projects. But as we progress into the year, the numbers should begin to improve, and our performance should reflect that.

I am going to turn it over to Kevin to give you some of the sectorial data, and we will come back to the question and answer period.

Good morning, everyone.

We had total sales on the fourth quarter of 2009 of $53.535 million, and that is comprised of 26.246 million in our Information Technology group, 16.461 million in our Engineering group, and 10.829 million in our Commercial Services group. Our blended gross margin for the fourth quarter was 24.81% comprised of the following. 23.33% for Information Technology, 24.59% for Engineering, and 28.72% for Commercial Services.

For the year, we had 209.277 million in total sales, comprised of the following. Information Technology was 103.446 million, Engineering was 59.251 million, and Commercial Services was 46.580 million. Our blended gross margin for the year was 25.81%, comprised of 26.34% for Information Technology, 23.51% for Engineering, and 27.58% for the Commercial Services group.

So with that, we will turn it over to questions and answers.

Right. Maybe we can open up the question and answer period.

(Operator Instructions).

Amy, are you there?

Yes, sir. There are no questions at this time.

All right. If there are no questions, then we thank you very much for joining the conference, and we will reconvene after the first quarter. Thank you.