Resources Global Professionals reported earnings results for the second quarter fiscal 2018. For the quarter, the company's total revenues were $156.7 million, which represents an increase of 6.2% compared to the second quarter a year ago, including taskforce. Net income improved to $8.1 million or $0.27 per diluted share compared to $5.7 million or $0.16 per diluted share a year ago. These results were positively impacted by $0.08 per diluted share related to the reversal of valuation allowances on international deferred tax assets, offset by cost of $0.06 per diluted share related to severance, acquisition, integration and transformation expenses during the quarter. On a constant currency basis, revenue increased 5.3% year-over-year and 10.6% sequentially. Adjusted EBITDA was $13.4 million compared to $12.3 million in the year-ago quarter. Pretax income was $10.3 million in the second quarter.

For the third quarter of fiscal year 2018, the company expects gross margin to be in the 35.6% to 35.9% range compared to 36.3% a year ago. The drop sequentially is primarily a result of the higher payroll taxes beginning in January.