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Recruitsoft Hits GAAP Profitability

Recruitsoft Inc., a San Francisco-based staffing management services provider, today announced it achieved profitability according to Generally Accepted Accounting Principles (GAAP) for the fourth quarter of 2002.

Privately held Recruitsoft reports that it began cash-flow positive operations in the fourth quarter of 2001 and says that it has steadily grown its revenues while investing in its technical and business infrastructure.

"Recruitsoft's first GAAP profitable quarter represents a significant milestone for our company and for our industry, and is a testament to the commitment of our customers, employees and strategic partners," Recruitsoft CEO Louis Tetu said. "Since inception, we have allocated our resources and efforts to focus first on achieving results for our customers, and only as a result of this on achieving profitability."

For 2002, the company reports that approximately 71 percent of its revenue came from ASP subscriptions. For 2002, revenue increased 131 percent over 2001 figures.

Recruitsoft said its 131-percent yearly increase in revenues was matched by a 130-percent increase in spending for ASP computing infrastructure for the year.

"We expect to continue to increase profitability in the years to come while reinvesting in our business and technical infrastructures," Jean Lavigueur, Recruitsoft's chief financial officer, said. "To support our customer growth in 2002, we increased our employee count by 31 percent to 349."

Recruitsoft delivers services and technology designed to manage enterprise staffing. Customers include Honeywell, Hewlett-Packard, Dow Chemical, Fortis, Starbucks Corporation, PepsiAmericas, P & G, Thomson, Agilent Technologies, The Gillette Company, Deloitte & Touche, Bombardier, Anthem Blue Cross and Blue Shield and UnitedHealth Group and others.


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