(RTTNews) - Business service provider Team Inc. (TISI: News ,TMI), Monday said its first quarter profit dropped sharply from a year ago, on lower revenues that affected nearly all geographic regions and service lines. Looking ahead, Team, however, reaffirmed its full-year 2010 forecast provided earlier.

For the first quarter, net income of the Alvin, Texas-based company plunged to $1.23 million or $0.06 per share from $4.96 million or $0.25 per share in the same quarter a year ago.

Quarterly results included non-routine legal and accounting costs of $1.1 million or $0.03 per share, after tax related to an ongoing, independent investigation. Excluding items, net income would have been $1.8 million or $0.09 per share.

On average, eight analysts polled by Thomson Reuters expected earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter dropped to $100.94 million from $123.34 million in the prior-year quarter, below Street expectation of $104.03 million.

Segment wise, revenues from TCM division declined to $57.31 million from $65.26 million and that from TMS division declined to $43.63 million from $58.08 million in the year-earlier quarter.

Team said the decline in revenues during the first quarter was broad based, affecting nearly all geographic regions and service lines.
Phil Hawk, Team's Chairman and CEO said, "This first quarter has been challenging; however, we are taking the steps necessary to stay strong operationally and financially as we work through these difficult market conditions."

Operating income for the quarter was $2.66 million, compared to $9.72 million in the year-earlier quarter. Selling, general and administrative expenses decreased to $27.03 million from $29.66 million in the year-earlier quarter.

Team said it has taken steps to reduce its overall cost structure and improve efficiency in both field service and corporate support activities, as reported earlier. Overall cost performance during the quarter has been in line with Team's expectation.

Looking ahead to fiscal year 2010, Team reaffirmed its earnings guidance of $0.85 to $1.05 per share, while the Street currently expects earnings of $0.98 per share, ranging from $1.02 to $1.16 per share.

The guidance excludes the impact of the non-routine investigation costs which are currently expected to reduce fiscal year 2010 earnings by approximately $0.06 per share. The company also said earnings guidance was based on an expectation that demand for its services would improve by approximately 10% in the second half of the year over the weak first half levels.

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