Customized training solution provider GP Strategies Corp. (GPX) Friday reported a slip to loss in the second quarter, negatively impacted by a goodwill and intangible asset impairment loss. Slowdown in customer spending brought on sharp declines in BPO and Sandy segment, resulting in a 25% drop in quarterly revenues. Excluding charges, earnings, however, came in above Street estimates.
Net loss for the second quarter was $6.62 million or $0.42 per share, compared to a profit of $2.98 million or $0.42 per share in the year-earlier quarter.
Quarterly results included a goodwill and intangible asset impairment loss of $10.16 million. On an adjusted basis, earnings were $0.13 per share, compared to $0.18 per share in the prior-year quarter.
On average, three analysts polled by Thomson Reuters expected earnings of $0.11 per share for the quarter. Analysts' estimate typically excludes one-time items.
Total revenues dropped 25% to $53.76 million from $72.03 million in the same quarter a year ago.
Revenue declined primarily due to a $10.4 million or 32% decrease in the Manufacturing & Business Process Outsourcing segment revenues and a $9.4 million or 46% decrease in the Sandy segment revenues. The decrease, however, was partly offset by an increase in revenue of $1.2 million or 9% in the Process & Government segment and $0.4 million or 7% in the Energy segment.
Revenues were negatively impacted by weak performance of Manufacturing & BPO, and Sandy Training & Marketing segment. Process & Government, and Energy segment, however, showed slight improvement, compared to the prior-year quarter.
Operating loss was $6.44 million, compared to operating profit of $5.09 million in the prior-year quarter.
For the six-month period, net loss was $5.16 million or $0.32 per share, compared to a profit of $5.83 million or $0.35 per share in the year-earlier period. Total revenue declined to $107.35 million from $138.95 million in the year-ago period.
GPX is currently at $6.88,up $0.48 or 7.50%, on the NYSE.
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