TAMPA — Professional staffing firm Kforce said Monday its revenues for the first quarter of 2020 were in line with its expectations despite the headwinds created by the COVID-19 pandemic.
The company reported $335 million in first-quarter revenues — up from $327 million the same quarter last year — and earnings of 42 cents per share. Both, it said, were driven primarily by growth in its technology staffing business.
Kforce matches about 30,000 technology, finance and accounting professionals a year with work at more than 4,000 client companies, a group that Kforce says includes 70 percent of the Fortune 100.
“The employment landscape has changed dramatically over the past few weeks," Kforce chairman and chief executive officer David L. Dunkel said in a revenues announcement. “Although we have seen some impact to our business from this abrupt and unprecedented economic disruption, we believe our results provide us further confirmation of the wisdom of our strategic decision to focus our offerings in the domestic technology and professional staffing and solutions market.”
Last year Kforce tightened its focus on its core business and sold a less-lucrative division that had provided staffing to local and federal government agencies to ManTech International of Fairfax, Va., for $115 million.
Along with announcing revenues, Kforce said it has suspended a stock buyback program that has repurchased $34 million in shares. This, Dunkel said, is because stock market expectations and valuations are not currently distinguishing between professional staffing firms like Kforce and harder-hit clerical, light industrial and international staffing companies.
The company does plan to continue paying quarterly dividends, as “our balance sheet remains strong," he said. If anything, he said, changes driven by the pandemic are growing demand for the tech staffing where Kforce has focused its efforts.
“In this unprecedented remote work environment, technology professionals are capable of effectively contributing to these mission-critical projects with nominal impact to their work routine,” Dunkel said.