CBIZ"After careful review of our technology businesses, our client demand for the services we provide and our market position, we have concluded we lack the size and scope to generate significant profitability and further investment in this area would not produce an acceptable return," Girard told analysts.
The company's three technology units include CBIZ Technologies and CBIZ Network Solutions, which had about $14.1 million in revenue and a pre-tax loss of about $1.7 million. Officials emphasized the company would continue providing outsource IT network services to Edward Jones nationally. The product lines reported last year included Dynamics GP and CRM and Syspro. The third company was a smaller operation whose services included VoIP. These groups employ about 100 people.
Net income for 2009 was $31.4 million, up from $30.4 million as revenue grew to $162.2 million from $158.6 million for 2008. However, the year ended on a weak note with net income dropping to $1.3 million, down 56.2 percent from just over $3 million in last year's corresponding period. Revenue grew to $162.3 million, up 2.3 percent from $158.6 million a year earlier.
A primary reason for the year end weakness was a slump in financial planning services. Normally, this business ramps up during the fourth quarter. But Girard said the expected year-end project-related revenue and pre-busy season revenue did not occur."
Fourth-quarter revenue was pulled down by a 9 percent decrease in same unit revenue. And financial services, which showed same unit growth of 7.8 percent for the fourth quarter of 2008, reported a 14.6 percent drop in same-unit revenue compared to the corresponding quarter a year earlier.
