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RCM Technologies, Inc. Announces First Quarter Results

RCM Technologies, Inc. Announces First Quarter Results

PENNSAUKEN, N.J., May 9, 2013 (GLOBE NEWSWIRE) -- RCM Technologies, Inc.
(Nasdaq:RCMT), a premier provider of business and technology solutions
designed to enhance and maximize the operational performance of its customers
through the adaptation and deployment of advanced information technology and
engineering services, today announced financial results for its first quarter,
the thirteen-week period ended March 30, 2013.

The Company announced revenues of $41.2million for the thirteen week period
ended March 30, 2013, increased from $38.2million for the thirteen week period
ended March 31, 2012 (comparable prior year period). The Company had operating
income of $1.5 million for the thirteen week period ended March 30, 2013 as
compared to $1.8 million for the comparable prior year period. Net income for
the thirteen week period ended March 30, 2013 was $1.0 million, or $0.08 per
diluted share, as compared to net income of $1.1 million, or $0.08 per diluted
share, for the comparable prior year period.

Leon Kopyt, Chairman and CEO of RCM, commented: "We are pleased with the
overall results of the Company for the first quarter and particularly pleased
with the record performance of our Engineering segment and the continuing
strong performance of our Information Technology segment. Our Engineering
segment experienced record quarterly revenues and its highest quarterly gross
profit since the first quarter of fiscal 2010. Our Information Technology
segment experienced its third straight consecutive quarter with sequential
growth in both revenues and gross profit. While our Specialty Health Care
Segment experienced a significant decline in revenues as compared to last
year's first quarter, we are confident that the management and staff in our
Specialty Health Care segment will work diligently to return that segment to
historic levels of performance."

Outlook

"As we consider our prospects going forward, we are cautiously optimistic that
our overall results for the three remaining quarters of fiscal 2013 should
exceed the comparative three quarters of fiscal 2012."

Stock Buybacks; Initiatives to Enhance Shareholder Value

During the thirteen-week period ended March 30, 2013, the Company repurchased
15,450 shares of its common stock for an aggregate cost of $0.1 million, or
$5.35 per share, exhausting the Company's $7.5 million repurchase pool. "Our
Board and management team remain committed to taking swift and decisive action
to deliver value to our shareholders without compromising our strong balance
sheet, financial flexibility and strategic growth trajectory, or our ability
to continue investing in our business. While potential future initiatives such
as stock repurchases and declarations of dividends are subject to approval of
the Board and will depend on the Company's results of operations, financial
condition, anticipated capital requirements, business conditions, level of
indebtedness, contractual restrictions and other factors deemed relevant by
the Board, we remain committed to continuing to explore further actions to
enhance shareholder value," concluded Mr. Kopyt.

About RCM

RCM Technologies, Inc. is a premier provider of business and technology
solutions designed to enhance and maximize the operational performance of its
customers through the adaptation and deployment of advanced information
technology and engineering services.RCM is an innovative leader in the
delivery of these solutions to commercial and government sectors.RCM is also
a provider of specialty healthcare services to major health care institutions
and educational facilities. RCM's offices are located in major metropolitan
centers throughout North America.Additional information can be found at
www.rcmt.com.

The Statements contained in this release that are not purely historical are
forward-looking statements within the Private Securities Litigation Reform Act
of 1995 and are subject to various risks, uncertainties and other factors that
could cause the Company's actual results, performance or achievements to
differ materially from those expressed or implied by such forward-looking
statements.These statements often include words such as "may," "will,"
"expect," "anticipate," "continue," "estimate," "project," "intend,"
"believe," "plan," "seek," "could," "can," "should" or similar expressions.In
addition, statements that are not historical should also be considered
forward-looking statements. These statements are based on assumptions that we
have made in light of our experience in the industry, as well as our
perceptions of historical trends, current conditions, expected future
developments and other factors we believe are appropriate in these
circumstances.Forward-looking statements include, but are not limited to,
those relating to demand for the Company's services, expected demand for our
services and expectations regarding our revenues, the Company's ability to
continue to utilize goodwill, to continue to increase gross margins, to
achieve and manage growth, to develop and market new applications and
services, risks relating to the acquisition and integration of acquired
businesses, the ability of the Company to consummate acquisitions as to which
it executes non-binding letters of intent, demand for new services and
applications, timing of demand for services, industry strength and competition
and general economic factors. Such statements are based on current
expectations that involve a number of known and unknown risks, uncertainties
and other factors, which may cause actual events to be materially different
from those expressed or implied by such forward-looking statements.Risk,
uncertainties and other factors may emerge from time to time that could cause
the Company's actual results to differ from those indicated by the
forward-looking statements. Investors are directed to consider such risks,
uncertainties and other factors described in documents filed by the Company
with the Securities and Exchange Commission. The Company assumes no obligation
(and expressly disclaims any such obligation) to update any forward-looking
statements contained in this release as a result of new information or future
events or developments, except as may be required by law.

                               Tables to Follow

                                                
                                                
RCM Technologies, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(In Thousands, Except Share and Per Share Amounts)
                                                
                                                
                                   Thirteen Week Periods Ended
                                   March 30,     March 31,
                                    2013          2012
Revenues                            $41,230       $38,206
Cost of services                   30,609        27,921
Gross profit                        10,621        10,285
Selling, general and administrative 8,838         8,231
Depreciation and amortization       269           278
Operating income                   1,514         1,776
Other income, net                   91            33
Income before income taxes         1,605         1,809
Income tax expense                 645           750
Net income                          $960          $1,059
                                                
Diluted net earnings per share data $0.08         $0.08

                                                                
                                                                
RCM Technologies, Inc.
Summary Consolidated Selected Balance Sheet Data
(In Thousands)
                                                                
                                                       March 30, December 29,
                                                        2013      2012
Cash and cash equivalents                              $13,896   $14,123
Accounts receivable, net                                $49,499   $43,706
Total current assets                                    $72,180   $70,345
Total assets                                            $86,285   $84,548
Total current liabilities                               $25,874   $25,063
Total liabilities                                       $26,587   $25,776
Stockholders' equity                                    $59,698   $58,772
Stockholder's equity less goodwill and intangible       $49,859   $48,895
assets

                                                               
                                                               
RCM Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In Thousands)
                                                               
                                                  Thirteen Week Periods Ended
                                                  March 30,     March 31,
                                                   2013          2012
Net income                                         $960          $1,059
Adjustments to reconcile net income to cash        282           390
provided by operating activities
Changes in operating assets and liabilities                     
Accounts receivable                                (5,893)       (681)
Transit accounts receivable                        3,233         1,869
Prepaid expenses and other current assets          455           (197)
Accounts payable and accrued expenses              1,259         (275)
Transit accounts payable                           (1,501)       (942)
Accrued payroll and related costs                  911           1,429
Income taxes payable                               367           601
Total adjustments                                  (887)         2,194
Cash provided by operating activities              73            3,253
                                                               
Net cash used in investing activities              (313)         (147)
Net cash provided by (used in) financing           67            (25)
activities
Effect of exchange rate changes                    (54)          (20)
(Decrease) increase in cash and cash equivalents   $(227)      $3,061

CONTACT: RCM Technologies, Inc.
         2500 McClellan Avenue
         Pennsauken, NJ 08109
        
         Tel:  856.356.4500
         Fax: 856.356.4600
         info@rcmt.com
         www.rcmt.com
        
         Corporate Contacts:
         Leon Kopyt
         Chairman, President & CEO
         Kevin D. Miller
         Chief Financial Officer

RCM Technologies, Lnc.
 
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