Staffing and consulting service experts COMSYS IT Partners, Inc., announced recently that it is has revised its guidance upward for the fourth quarter of 2009. The company stated that their revised net income and earnings estimates exclude an expected reversal of a previously recognized portion of restructuring expense related to their Washington DC area lease. The revision also excludes potential effects of its quarterly review on the recoverability of its deferred tax assets.
As per the revision, COMSYS now expects to report revenue in a range of $170 million to $175 million for the fourth quarter and net income in the range of $5.3 million to $6.4 million, or approximately $0.25 to $0.30 per diluted share. This marks an increase from the company’s earlier guidance of $161 million to $166 million for the fourth quarter, and net income in the range of $2.5 million to $3.6 million, or approximately $0.13 to $0.18 per diluted share.
For the year ending January 3, 2010, COMSYS expects to report revenue in the range of $647 million to $652 million, and net income before restructuring charges in the range of $12.9 million to $14.0 million, or approximately $0.62 to $0.67 per diluted share. These values also represent an increase from last year’s full year guidance. The revised estimates are based on an effective tax rate of approximately 6.4%.
Larry L. Enterline, COMSYS Chief Executive Officer, commented, “The strengthening activity levels that we reported on in late October have continued through November and December, and we also expect to report a sequential increase in gross margins due to higher margins in our core staffing business and increased fee income in TAPFIN. As a result, earnings per share should be well above our previous range notwithstanding our continued spending in the fourth quarter on the business initiatives we have commented on throughout the year. Cash flow in the fourth quarter was also better than expected and we ended the year with less than $40 million of debt.”