Pomeroy IT reports sharp drop in 2nd-quarter profit as revenue declines 35 percent

Pomeroy IT posts lower 2Q profit, sales

HEBRON, Ky. — Information technology services provider Pomeroy IT Solutions Inc. posted sharp decline in its fiscal second-quarter profit on Monday, hurt by lower revenue.

For the three months ended July 5, the company posted a profit of $324,000, or 3 cents per share, down 78 percent from $1.5 million, or 12 cents per share, in the same period a year earlier.

Adjusted earnings totaled 17 cents per share in the latest quarter, down from 19 cents per share in the year-ago period.

Revenue fell 35 percent to $100.8 million from $155 million a year earlier.

A 19 percent drop in operating costs to $14.4 million partially offset the revenue decrease.

“We continue to execute on our turnaround in spite of softness in the market,” said Chris Froman, president and CEO, in a statement. “As technology spending resumes we will be well positioned for additional profit growth.”

Shares closed earlier up 2 cents at $5.97.