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Straight Talk for the Recruiting Profession


Articles tagged 'financials'

Industry News, Staffing

Dice Financials: Staffing Firms ‘Very Active’ In Q1



Dice Holdings logo

Direct tech hiring may be a little soft today, but staffing firms are powering the recruiting market, looking to fill orders for temp and project workers that employers need, but are hesitant to bring on permanently.

“Staffing firms in the technology space are definitely very active today,” said Scot Melland, chairman, CEO and president of Dice Holdings, “and they’re seeing their businesses do pretty well.”

Speaking to financial analysts during a Q1 conference call this morning, Melland said, “Companies are still leaning towards outsourcing talents to contractors, as well as staffing firms, rather than hiring full time.”

Industry News

LinkedIn Plans to Raise Recruiter Rates; Financial Report Beats Wall Street



recruitment revenue full year 2012

LinkedIn Revenue by product 2012LinkedIn didn’t so much beat Wall Street’s financial expectations, it shattered them.

The company earned 35 cents per share on revenue of $303.6 million. That was $24 million more than the average of analysts’ estimates and more than $11 million above the most optimistic projection. The average of their earnings estimates was 19 cents a share.

The numbers released this afternoon show LinkedIn brought in more total revenue for the year than did Monster and its 4th quarter recruitment revenue alone was 90% above the same quarter in 2011.

LinkedIn said it expected to see between $305 million and $310 million in revenue for the current quarter and between $1.41 and $1.44 billion for the year.

Industry News

“Massive” Layoff At Monster Worldwide



Monster logo

Monster Worldwide laid off an undisclosed number of workers Tuesday, and closed its operations in Brazil and Mexico.

One report put the number at 800, while a Twitter post simply described it as “massive.”

A company representative confirmed there were layoffs, but offered few specifics. In an emailed statement, the representative said:

Consistent with previously announced plans during the company’s Q3 earnings call to concentrate resources on business in North American and key European and Asian markets, Monster has taken a number of corporate restructuring initiatives to strengthen our core markets and increase the company’s profitability.  This includes pursuing a sale of our China HR business, closing operations in Brazil and Mexico and restructuring our global workforce to reduce our operating expenses.  Monster remains committed to providing leading talent recruitment solutions to our customers in more than 40 countries.

Last month, Monster officials said during the company’s 3rd quarter financial call with investment analysts, that layoffs were likely in the future. CFO Jim Langrock said during the call that the layoffs would come in the development area, a consequence of both the completion of the company’s latest search and cloud technology projects, as well as the decision to cut costs.

A previous layoff last January involved about 400 workers.

Monster has been struggling for several quarters, announcing earlier this year that it was reviewing “strategic alternatives,” Wall Street code for selling the company or parts of it. Last month, Monster said it would seek to sell its Asian job board ChinaHR, and would shutter or sell off other operations.

Its stock is currently at about $5.50 a share, down about 2.6% today.

Industry News

Monster Announces Restructuring Including China Sale, Layoffs



3rd Q job board financials complete

Careers site operator Monster Worldwide is announcing this morning a corporate restructuring that will have the company pulling back from some of its global markets, particularly China where it be looking to sell its ChinaHR job site.

Company officials discussed the restructuring this morning in a conference call with investment analysts after releasing Monster’s 3rd quarter financials showing revenue down in every category, but still managing to earn 9 cents a share exclusive of one-time expenses.

The bad news in the financial report is that revenue was down almost 11 percent overall, with the biggest hit coming from operations outside North America. Revenue there was down 15.3 percent. But even in North America revenue declined, down 6.3 percent. In contrast, CareerBuilder reported it grew its North American revenue by 5 percent to $169 million.

Industry News

Dice Beats Estimates and Says More Features, Passive Reach In Store For 2013



3rd Q job board financials

Propelled by its flagship tech site, Dice Holdings this morning delivered a financial report so strong it sent the company’s stock up 12 percent.

The company, the first of the publicly traded career sites to report, said it earned 17 cents per diluted share. That beat Wall Street’s average estimate of 12 cents. Dice also reported revenue of $48 million, an increase of 2.6 percent over the same quarter last year and a million more than analysts were expecting.

CareerBuilder, which is privately held, voluntarily reported revenue of $169 million from its operations in North America. That’s a 5 percent increase over the 3rd quarter of 2011. The company doesn’t release other revenue numbers or earnings. LinkedIn will report on Nov. 1.

Monster, curiously,  has yet to set a date for release of its numbers. Typically, the company would have done that by now. It also would typically report its numbers this week. There were rumors of a possible sale to (among others) the German media company Axel Springer. The company denied the reports this week.

Dice Holdings, meanwhile, is looking ahead to a strong finish to the year, and product improvements and growth next year.

Industry News, The Business of Recruiting

There’s a Monster For Sale In New York



Monster logo

Saying, “At a certain price, anything’s for sale,” Monster CEO and Board Chairman Sal Iannuzzi unequivocally confirmed today that the job board or pieces of it could be sold off in the coming months.

Not just any deal will be accepted, he said in interviews conducted at the company’s Innovation Day demonstrations in New York City. “It would have to be compelling and it would have to make sense to Monster as a whole. This is not just about raising money.”

The buyer is less important, Iannuzzi implied, telling Bloomberg, “We’re agnostic as to what type of acquirer it is.

“The real issue is we know we have value, and we know we can go around and look for opportunities to get that.”

Business, For Managers

The Recruiting Industry’s Biggest Taboo – And How to Cope With It



taboo sign

When I first accepted my recruiter “trainee” position in November of 1987, I was hired by a CPA/MBA Deloitte “Big 8” audit manager who had a then-recent position as a financial officer of a W.R. Grace division. Being somewhat naïve, along with possessing an insatiable appetite to savor success and affluence, I actually went on doing what I was told I could do during my first two years and savored initial success.

Then disaster struck in the form of the 1990-1992 Savings and Loan recession. We did not know what exactly was happening at the time however. While I still made placements during the worst of this cycle, it required more work than I had needed to perform while training and for less money. I pursued necessary new clients with ferocity and managed to battle my way through. The experience knocked some of the cocky confidence out from me. But by 1994-1995 I was back sailing the high seas and hitting figures and results that paled my initial years of success by comparison.

Uncategorized

Staffing Company Spherion’s Losses Show Impact Of Economy



spherion

More bad news on the employment front today as Spherion reports it lost $126.2 million in the last quarter of 2008, giving it a $118.5 million loss for the year.

spherionThe staffing and RPO company’s 4th quarter revenues were $507.5 million, down $74 million over the same period in 2007. For the year, Spherion reported revenue of $2.19 billion versus $2.02 billion the previous year.

“Challenging economic conditions adversely impacted our company’s performance during the fourth quarter,” Spherion President and Chief Executive Officer Roy Krause says in the financial release announcing the results. “Our focus on cash flow and containment of operating costs continues to improve our financial stability and flexibility during these challenging economic times.”

The revenue figures were below Wall Street’s expectations. Analysts estimated 4th quarter revenue between $518 million and $522 million.

The news, however, didn’t negatively affect the already battered stock price. Spherion was up 3 cents on the day to $1.37. The stock price has been as high as $7.08 in the last year, but began a downward slide in April before dropping precipitously in October as the extent of economic crisis made headlines.

In releasing its numbers, Spherion said, “The continuing economic volatility makes it difficult to predict with any certainty the amount of demand that will be seen in the market, and therefore management has elected not to provide revenue and earnings guidance for the first quarter of 2009. The company believes that a combination of existing cash balances, operating cash flows, and existing revolving lines of credit, taken together, provide adequate resources to fund ongoing operations.”