R C M Technologies Inc (RCMT) 2010 Q2 法說會逐字稿

Ladies and gentlemen, thank you for joining the RCM Technologies second quarter earnings conference call.

Your host for today is Mr. Leon Kopyt. Mr. Kopyt, you may begin.

Thank you, Jeremy. Good morning and welcome to our second quarter conference call. I am joined by two of my colleagues, Kevin Miller and Art Dell, who will present as part of the presentation for this morning. I will turn things over to Art, who will then turn over to Kevin. 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 risk 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 happy 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, l will now turn it over to Kevin to provide the selective financial data.

Good morning, everyone. As you know from the press release, in Q2 we had total revenues of $46,876,000. That is comprised of the following -- $19,220,000 in Information Technology, $16,351,000 in Engineering, and $11,303,000 in our Commercial Services group. The total gross profit dollars, which was $12,911,000 is comprised of $5,714,000 for Information Technology for a gross margin of 29.73%, $4,167,000 for Engineering for a gross margin of 25.48%, and $3,030,000 in gross profit for our Commercial Services for a gross margin of 26.8%.

Kevin, thank you very much. Jeremy, can we open it up for the question and answer period?

(Operator Instructions). There are no questions in queue at this time.

All right. Thank you very much and we will reconvene for the next conference call.

Excuse me, sir? Thank you, ladies and gentlemen. This concludes your call.