RCM Technologies Preliminary Second Quarter Results to Fall Short of Company Expectations, Revs $35-36M

RCM Technologies, Inc.

today announced that primarily due to unexpected and extended client procedural delays in awarding certain engagements under an existing contract with a major North American utility, the Company's second quarter revenues and operating income will fall short of its expectations. The Company anticipates revenues in the range of $35.0 to $36.5 million and operating income in the range of 1.0% to 3.0%. Leon Kopyt, Chairman and CEO of RCM, commented: "As we previously communicated, the gradual ramp-up of work by our client and the unpredictability of longer award release cycles can have an adverse impact on our revenues. Although we are disappointed with the developments that took place during our second quarter, we continue to be optimistic with the level and scope of the work proposed for our major North American utility client as evidenced by a recent award of a $19 million engagement to commence early in our third quarter. This engagement was originally expected to commence sometime in the second quarter. We believe that the Company should otherwise perform as expected in the second quarter."