Staffing firm GEE Group Inc. (NYSEAMERICAN: JOB) reported revenue fell 4.1% in its fiscal second quarter ended March 31. The Jacksonville, Florida-headquartered staffing provider reported contract staffing revenue fell 4.9% in the quarter due to the impact of Covid-19 pandemic, while direct-hire revenue rose 1.5%.
| (US$ thousands) | Q2 2020 | Q2 2019 | % change |
| Net revenue | $34,681 | $36,177 | -4.1% |
| Gross profit | $11,914 | $11,718 | 1.7% |
| Gross margin | 34.4% | 32.4% | |
| Net loss | ($5,428) | ($3,890) | nm |
The company noted direct-hire revenue increased in the earlier months of the second quarter, while demand weakened in the second half of March.
Revenue by segment
| (US$ thousands) | Q2 2020 | Q2 2019 | % change |
| Contract staffing services | $30,265 | $31,827 | -4.9% |
| Direct hire placement services | $4,416 | $4,350 | 1.5% |
GEE Group provides staffing in IT, accounting/finance, office, engineering and medical.
The company noted professional contract staffing services revenue fell 4% to $25.8 million in the second quarter while industrial contract staffing services revenue fell 12% to approximately $4.5 million.
GEE also noted in a regulatory filing that it and its subsidiaries entered into nine unsecured promissory notes payable under the Payroll Protection Program on May 5 and received net funds totaling $19.9 million.
Share price and market cap
Shares in GEE Group were down 5.2% to approximately 29 cents today as of 12:53 p.m. Eastern time; the company had a market cap of $4.3 million, according to FT.com.