With the nation’s unemployment rate nearing a woeful 10%, the second quarter proved equally troubling for a provider of software that helps companies manage those dwindling workforces.
Kenexa, which offers tools to manage employee hiring and on-the-job performance, reported on Tuesday that sales in its second quarter, ended June 30, totaled $39.5 million, 30% less than the prior-year’s $56.4 million. Executives signaled that depressed sales will be the norm for at least the remainder of the year.
Although expenses also declined in Q2, the sharp reduction in revenue ate away at the bottom line, lowering Kenexa’s net income to $1.3 million, 78% less than the approximately $6 million reported in Q2 of 2008.
One of the few bright spots was the fact that the software provider managed to pad company coffers, ending the first half with cash and cash equivalents of $25.4 million, up from $23.1 million at the end of last year’s first half.