Southfield-based TechTeam Global Inc. (NASDAQ: TEAM), an IT and business process outsourcing provider, reported a loss of $1.8 million or 17 cents a share for the second quarter ended June 30. The loss was a result of a one-time restructuring charge of $3.9 million during the quarter. Excluding the restructuring charge, the company would have reported net income of $1.3 million or 12 cents a share, vs. net income of $1.5 million or 14 cents a share for the same period last year. Earnings were also affected by 4 cents per share by a temporary increase in the income tax rate and related tax provision that was unique to the second quarter's results.
Total revenue rose 29.2 percent over last year to $67.9 million. Organic growth, excluding acquisition, was 17.7 percent.
Revenue from the company's commercial business increased 22.7 percent over last year to $45.7 million, and revenue from the company's government business increased 44.9 percent to $22.2 million.
Gross profit rose 25.9 percent to $17.1 million in the second quarter, up from $13.6 million in the same period in 2007. The gross margin decreased to 25.2 percent of revenue in the second quarter from 25.9 percent a year earlier.
Selling, general and administrative expense decreased to 20.8 percent of revenue for the second quarter of 2008, from 21.4 percent of revenue for the same period in 2007.
To listen to a replay of a conference call discussing the results, call (888) 286-8010 in the United States or (617) 801-6888 elsewhere, using the pass code 93073358.
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