The government solutions business at Kforce Inc. could be taking a turn.
The company has extensively reviewed the unit, and “decided to more specifically focus our investment on the solutions aspects of this business,” David Dunkel, Kforce chairman and CEO, said in a statement.
As a result, Kforce will be evaluating the carrying value of the unit’s assets and goodwill between now and the end of the year, the statement said.
The review comes on the heels of layoffs at Kforce (NASDAQ: KFRC), a Tampa-based staffing firm. The company has said it would incur one-time pre-tax charges related to those layoffs of $6 million to $7 million in the current quarter. Some former employees have raised questions about the manner in which those layoffs were handled.
Separately, the Tampa Bay Business Journal has reported on allegations in a divorce court filing by Dunkel’s estranged wife. Those unproven accusations in the court petition raise questions about Dunkel’s transfer of Kforce stock.
The government solutions business was launched when Kforce bought Pinkerton Computer Consultants Inc. in 2006. The business provides technology and finance and accounting professionals to the federal government, primarily as a prime contractors.
In the nine months ended Sept. 30, the government solutions business accounted for $70.3 million in net service revenue and $24.2 million in gross profit at Kforce, a filing with the U.S. Securities and Exchange Commission said. That’s about 8.3 percent of total net service revenue and 8.9 percent of gross profit.
Following the federal government shutdown in the third quarter of 2013, management expects revenue for the government solutions business to remain flat for the rest of the year, the filing said.