(RTTNews) - Professional service provider Resources Connection, Inc. (RECN: News ), Thursday revealed its first-quarter financial results, reporting a slip to loss from the same quarter a year ago, reflecting a slump in gross margin as well as revenues. Loss for the quarter came in ahead of Street expectations, while revenues fell short of estimates.

The Irvine, California-based company's net loss for the quarter was $7.186 million or $0.16 per share, compared to a profit of $12.492 million or $0.27 per share.

On average, eight analysts polled by Thomson Reuters expected a loss of $0.04 per share for the first quarter. Analysts' estimate typically excludes special items.

Revenues for the first quarter plummeted 42.9% to $118.263 million from $207.305 million in the same quarter last year, below Street view of $119.79 million.

The decline was primarily due to a 39.8% drop in revenues from the US as well as a 50% drop in revenues from the International market. On a constant dollar basis, revenues from the International market dropped 45.8% from the same quarter last year.
The company recorded an operating loss of $9.091 million for the quarter, compared to an operating profit of $21.604 million in the same quarter last year, primarily hurt by a decline in gross margin to 38.2% from 39.0%.

During the quarter, the company recorded an income tax gain of $1.7 million, compared to an income tax provision of $9.6 million in the year ago quarter.

Don Murray, chief executive officer, Resources Connection, said "Our first quarter results are reflective of a slowly recovering global economy and, to a lesser extent, the seasonal impact of vacations."

RECN closed Thursday's trading at $16.90, down $0.16 or 0.94%, on a volume of 0.701 million shares on the Nasdaq. In the after hours, the stock lost $0.90 or 5.33%, to trade at 16.00

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by RTT Staff Writer

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