RCM Technologies Q3 revenue falls 22%; posts decline in specialty healthcare division


RCM Technologies Inc. (NASDAQ: RCMT) reported third-quarter revenue fell 21.6%, although gross margin improved. The Pennsauken, New Jersey-based staffing provider reported third-quarter revenue fell 46.2% in its specialty healthcare division; it noted smaller declines in its engineering and IT staffing segments.

(US$ thousands) Q3 2020 Q3 2019 % change
Revenue $31,561 $40,250 -21.6%
Gross profit $8,820 $10,615 -16.9%
Gross profit margin 27.9% 26.4%  
Net loss/income ($244) $335 nm

“We continue to make progress on our Covid plan that we outlined in May,” RCM Executive Chairman Bradley Vizi said. “We are looking forward to delivering sequentially better results in the fourth quarter of 2020, and, despite obvious headwinds, we will continue to focus on further improvement as we head into 2021.”

Revenue by segment

(US$ thousands) Q3 2020 Q3 2019 % change
Engineering $15,087 $15,140 -0.4%
Specialty healthcare $9,015 $16,765 -46.2%
Information technology $7,459 $8,345 -10.6%

Share price and market cap

Shares in RCM were down 4.20% to $1.37 as of 12:09 p.m. Eastern time; shares were 34.31% above their 52-week low. RCM had a market cap of $14.6 million.