IRVINE, Calif.--(BUSINESS WIRE)--May 7, 2008--HireRight, Inc. (NasdaqGM: HIRE), a leading provider of on-demand employment screening solutions, today announced financial results for the first quarter ended March 31, 2008.
Service revenue for the first quarter increased 8.6% to $15.8 million, compared to $14.5 million in the first quarter of 2007. Gross profit for the quarter rose to $8.4 million from $7.5 million in the prior year quarter. Gross profit as a percentage of service revenue rose to 53.3%, compared to 51.7% in the same quarter a year ago.
HireRight president and chief executive officer, Eric Boden, stated, "In the first quarter, in spite of a challenging environment, we executed well and exceeded earnings expectations, despite service revenue that was slightly below target. We are pleased with our new customer growth in the first quarter. We plan to continue investing in initiatives to grow our customer base and extend our leadership position."
The company intends to provide certain financial guidance for the second quarter and updated full year 2008 guidance during its conference call scheduled for later today. Information relating to the conference call is set forth below.
Income from operations was $1.8 million for the first quarter of 2008, compared to $1.9 million during the same prior year period. Net income was $1.5 million, or $0.12 per diluted share, an increase from $1.2 million in the first quarter of 2007. The effective tax rate for the first quarter of 2008 was 36%.
Cash, equivalents, and investments totaled $56.0 million at the end of the first quarter of 2008, an increase from $55.4 million at the end of the fourth quarter of 2007. The increase was primarily due to additional interest income earned during the current period.
HireRight's first quarter results and the company's outlook for the second quarter and full year 2008 will be discussed during a conference call today, May 7, 2008 at 5:00 pm Eastern Time, via teleconference and webcast. The dial-in number is (866) 831-5605 within the United States, and (617) 213-8851 outside the United States. The teleconference pass code is 52421982. You can also access a live broadcast of the call by visiting our website at http://ir.hireright.com. A replay will be available for one month at the same web address or by phone at (888) 286-8010 or (617) 801-6888 outside the United States, with pass code 37069555.
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This message may contain forward-looking statements based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, our expectations regarding our financial condition and results of operations and any statements or implications regarding our future customer growth. Such statements speak only as of the date hereof and are subject to change. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference include, but are not limited to, the various risks and uncertainties described in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2007, and the general economic and political conditions and specific conditions that may impact our operations, including hiring trends. Further information on HireRight, Inc., including additional risk factors that may affect our forward looking statements, is contained in our Annual Report on Form 10-K and our other SEC filings that are available through the SEC's website (www.sec.gov).
HireRight is a leading provider of on-demand employment background and drug screening solutions that help organizations efficiently implement, manage and control screening programs. Many companies, including more than 65 of the Fortune 500, trust HireRight because the company delivers customer-focused solutions that provide greater efficiency and faster results. HireRight also provides pre-integrated employment screening services through enterprise e-recruiting solutions from top providers such as Oracle/PeopleSoft, Taleo, Vurv, ADP/VirtualEdge and PeopleAdmin. HireRight's worldwide headquarters are located in Irvine, California with offices and affiliates around the globe. For more information, visit the company's web site atwww.hireright.com.
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