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GEE Group Inc. (NYSEAMERICAN: JOB) reported net revenue fell 2.6% in its fiscal first quarter ended Dec. 31.

The Jacksonville, Florida-based staffing firm also reported a net loss of $3.6 million. However, overall gross margin improved, primarily due to an increase in both the professional and industrial contract services gross margin.

(US$ thousands) Q1 2020 Q1 2019 % change
Net revenue $37,557 $38,543 -2.6%
Gross margin 33.5% 33.0%  
Net loss  ($3,563) ($3,452) nm

The company attributed decreases in contract staffing services and direct placement revenue to various factors including fewer actual billing days due to inclement weather and winter holidays falling mid-week during the quarter.

Revenue by segment

(US$ thousands) Q1 2020 Q1 2019 % change
Contract staffing services $33,078 $34,014 -2.8%
Direct hire placement services $4,479 $4,529 -1.1%

“Greater usage of flexible, on-demand labor to satisfy the human resource needs in corporate America provides very favorable conditions for our business and the staffing industry as a whole,” said Chairman and CEO Derek Dewan.

Share price and market cap

Shares in GEE Group were down 5.57% to 38 cents at 10:36 a.m. Eastern time; the company had a market cap of $5.32 million, according to FT.com.

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