COMSYS IT Partners, Inc. announced this morning that its fourth quarter revenue and net income (excluding the goodwill impairment charge discussed below) were both at the top end of the range of guidance provided earlier. Revenue was $176.0 million, down 4.0% from $183.3 million during the fourth quarter of 2007, while net loss totaled $82.6 million, or $4.03 per common share, compared to net income of $8.7 million, or $0.43 per share, in the fourth quarter of 2007.
The Company recorded a non-cash, after-tax goodwill impairment charge of $86.0 million, or $4.38 per share, during the fourth quarter of last year. The impairment was due to the decline in the Company’s trading stock price during the fourth quarter. According the press release, COMSYS’ current operating trends nor its financial results for the fourth quarter were factors that led to the charge.
Commenting on the results, Larry L. Enterline, COMSYS Chief Executive Officer, stated, “Although we remain cautious during this extraordinary period in the global economy, we are very pleased that, excluding the goodwill impairment charge, our fourth quarter results met or exceeded our expectations. We attribute our performance, in large part, to the focus on productivity and efficiency in our operations that we have had throughout the year.”
He continued, “Despite the challenges we face from this downturn, I am confident that we have COMSYS positioned to both weather this economic storm and, as importantly, to take advantage of the subsequent recovery. With a strong balance sheet, we are in a much better position today than in the last recession. Our plan is to continue to preserve our core infrastructure while carefully managing costs, which will allow us to generate cash during the downturn, reduce debt balances and be well positioned as the economy begins to improve.”
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