Analysts International Corp. (ANLY, Financial) filed Quarterly Report for the period ended 2009-07-04.
Analysts International is a diversified IT services company. In business the company has sales and customer support offices in the United States and Canada. Lines of business include Full Service Staffing which provides high demand resources for supporting a client\'s IT staffing needs; Solutions Services which provides business solutions and network infrastructure services; Managed IT Services and Government Solutions. The company partners with best-in-class IT organizations allowing access to a wide range of expertise resources and expansive geographical reach. Analysts International Corp. has a market cap of $15 million; its shares were traded at around $0.6 with and P/S ratio of 0.1.
· We reduced our SG&A expenses in the second quarter and first half of fiscal 2009 by $2.6 million and $5.3 million when compared against the second quarter and first half of fiscal 2008, respectively; however, we expect the rate and amount of future SG&A reductions to decline. As a percentage of revenue, our SG&A expense increased to 25.5% and 24.9% during the second quarter and first half of fiscal 2009 compared to 15.8% and 16.2% in the second quarter and first half of fiscal 2008, respectively, primarily due to a significantly lower revenue base.
contribution margin of $0.4 million. Over the past 12 months, the VAR business has generated revenues of approximately $48.5 million and had an unfavorable contribution margin of approximately $0.1 million.
Our revenues decreased $41.5 million, or 50.6%, in the second quarter of fiscal 2009 as compared to the second quarter of fiscal 2008 primarily due to our planned exit from non-core and low-margin lines of business (20.2%), the negative impact the economic environment has had on the demand for our IT professional services (17.7%), a reduction in volume at our largest customer (6.8%) and a reduction in product demand (5.9%). Specifically, our planned exit from non-core and low-margin lines of business caused our revenues to decline $16.6 million, or 20.2%, compared to the second quarter of fiscal 2008. Early in the third quarter of fiscal 2008, we sold Symmetry Workforce Solutions (Symmetry), our managed staffing business, to COMSYS Information Technology Services, Inc. and discontinued our staffing relationship with one of our large staffing accounts. Together, business through Symmetry and the large staffing account represented approximately $15 million in quarterly revenue and $60 million in annualized revenue.
SG&A expenses declined in the second quarter of fiscal 2009 due largely to the execution of our Plan and the reduction in business volume. During the quarter, we incurred non-cash charges of $4.0 million, including $2.3 million for the impairment of intangible customer lists and $1.7 million for restructuring and other severance related costs.
During the second quarter of fiscal 2008, we recorded workforce reduction and office closure and consolidation charges totaling approximately $0.7 million. Of these charges, approximately $0.7 million related to severance and severance-related charges and approximately $24,000 related to future rent obligations for a location we closed prior to June 28, 2008.
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Analysts International is a diversified IT services company. In business the company has sales and customer support offices in the United States and Canada. Lines of business include Full Service Staffing which provides high demand resources for supporting a client\'s IT staffing needs; Solutions Services which provides business solutions and network infrastructure services; Managed IT Services and Government Solutions. The company partners with best-in-class IT organizations allowing access to a wide range of expertise resources and expansive geographical reach. Analysts International Corp. has a market cap of $15 million; its shares were traded at around $0.6 with and P/S ratio of 0.1.
Highlight of Business Operations:
· On August 4, 2009, we sold our value-added reseller (VAR) assets to Netarx, LLC (Netarx). The sale provided us with $3.0 million in cash at closing and may provide up to an additional $0.75 million in contingent cash consideration. In addition, we retained certain· We reduced our SG&A expenses in the second quarter and first half of fiscal 2009 by $2.6 million and $5.3 million when compared against the second quarter and first half of fiscal 2008, respectively; however, we expect the rate and amount of future SG&A reductions to decline. As a percentage of revenue, our SG&A expense increased to 25.5% and 24.9% during the second quarter and first half of fiscal 2009 compared to 15.8% and 16.2% in the second quarter and first half of fiscal 2008, respectively, primarily due to a significantly lower revenue base.
contribution margin of $0.4 million. Over the past 12 months, the VAR business has generated revenues of approximately $48.5 million and had an unfavorable contribution margin of approximately $0.1 million.
Our revenues decreased $41.5 million, or 50.6%, in the second quarter of fiscal 2009 as compared to the second quarter of fiscal 2008 primarily due to our planned exit from non-core and low-margin lines of business (20.2%), the negative impact the economic environment has had on the demand for our IT professional services (17.7%), a reduction in volume at our largest customer (6.8%) and a reduction in product demand (5.9%). Specifically, our planned exit from non-core and low-margin lines of business caused our revenues to decline $16.6 million, or 20.2%, compared to the second quarter of fiscal 2008. Early in the third quarter of fiscal 2008, we sold Symmetry Workforce Solutions (Symmetry), our managed staffing business, to COMSYS Information Technology Services, Inc. and discontinued our staffing relationship with one of our large staffing accounts. Together, business through Symmetry and the large staffing account represented approximately $15 million in quarterly revenue and $60 million in annualized revenue.
SG&A expenses declined in the second quarter of fiscal 2009 due largely to the execution of our Plan and the reduction in business volume. During the quarter, we incurred non-cash charges of $4.0 million, including $2.3 million for the impairment of intangible customer lists and $1.7 million for restructuring and other severance related costs.
During the second quarter of fiscal 2008, we recorded workforce reduction and office closure and consolidation charges totaling approximately $0.7 million. Of these charges, approximately $0.7 million related to severance and severance-related charges and approximately $24,000 related to future rent obligations for a location we closed prior to June 28, 2008.
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