Kforce has posted Q1 revenue of $322.2m (£222.4m), below the US professional staffing specialist’s expectations.

The group’s results, published late yesterday, reveal revenue for the first quarter ended 31 March 2016 was down 1.7% on the quarter ended 31 December 2015. However, this represents a 3.1% year-on-year growth for the quarter. 

Meanwhile the group posed adjusted net income, excluding the effect of severance costs and certain tax adjustments, of $2.7m, compared to net income of $5.8m in the corresponding quarter last year.

According to chairman and chief executive David L. Dunkel the group has been “aggressively” taking action, particularly within its Tech Flex business, to reduce reliance on a few large customers. This move has resulted in some signs of recent improvement, although Q1 revenue is below expectations. 

However, the quarter also saw the US Department of Veterans Affairs (VA) award one of nine large business prime contract vehicles to Kforce’s Government Solutions business. Kforce will directly support the VA, along with 12 small businesses in areas that include information technology infrastructure improvements, cyber security, and operations and network management.