Volt Information Sciences Reports Fourth Quarter and Fiscal Year Ended Oct. 29.

M2 PRESSWIRE-9 January 2007-Afternoon Movers: Volt Information Sciences Reports Fourth Quarter and Fiscal Year Ended Oct. 29(C)1994-2007 M2 COMMUNICATIONS LTD

RDATE:09012007

Volt Information Sciences, Inc. (NYSE:VOL) is a leading national provider of Staffing Services and Telecommunications and Information Solutions with a Fortune 100 customer base. Operating through a network of over 300 Volt Services Group branch offices, the Staffing Services segment fulfills IT and other technical, commercial and industrial placement requirements of its customers, on both a temporary and permanent basis. The Telecommunications and Information Solutions businesses, which include the Telecommunications Services, Computer Systems and Telephone Directory segments, provide complete telephone directory production and directory publishing; a full spectrum of telecommunications construction, installation and engineering services; and advanced information and operator services systems for telephone companies. For additional information, please visit Volt's web site at http://www.volt.com.

During early morning trading shares are up 9% to $51.78. This momentum comes as Volt Information Sciences, Inc. (NYSE: VOL) reported financial results for the Company's fourth quarter and fiscal year ended October 29, 2006.

MarketGainer.com has emerged as the most exciting online financial newsletter! For international, small-cap investors who are looking to stay a step ahead of the markets visit MarketGainer.com.

Volt will conduct a conference call webcast at 10:00 A.M. (EST) today to discuss fourth quarter and fiscal year results. The conference call dial-in number is 1-800-857-6028 (domestic) or 1-210-234-0013 (international), passcode: Fourth Quarter. The conference call will be broadcast live over the Internet and can be accessed for the next 30 days at http://www.volt.com/investor/press_release.cfm.

Attached is a summary of the Company's results of operations and the notes thereto. The notes are an integral part of the summary.

FOURTH QUARTER - FISCAL 2006 RESULTS

For the fourth quarter of fiscal 2006 ended October 29, 2006, the Company reported net income of $13.6 million, or $0.86 per share, compared to $8.4 million, or $0.54 per share, in the fiscal 2005 fourth quarter, an increase of 62%. Net sales for the 2006 quarter increased by 3% to $610.2 million, compared to $590.2 million in last year's comparable quarter. Income before minority interest and income taxes increased by $4.3 million, or 25%, compared to the 2005 comparable quarter. The minority interest was repurchased from Nortel Networks, Inc. on December 29, 2005.

FISCAL YEAR 2006 RESULTS

For the twelve months of fiscal 2006, the Company reported net income of $30.7 million, or $1.97 per share, compared to net income of $17.0 million, or $1.11 per share, in the comparable fiscal 2005 period, an increase of 80%. Net sales for the twelve months of fiscal 2006 increased by 7% to $2.3 billion, compared to $2.2 billion last year. Income before minority interest and income taxes was $51.6 million in the fiscal year 2006 compared to $36.3 million last year, an increase of 42%.

Commenting on the results for the fourth quarter and year, Mr. Steven A. Shaw, President and CEO of Volt, stated "Staffing Services continued to be the main force behind our improved fourth quarter and full fiscal year results. Strong demand in our IT and Engineering markets, tight control of workers' compensation and unemployment costs, and solid execution of our business plan to focus on higher margin clients and services were the primary drivers for the improved results. In addition to our Staffing Services segment, the Directory Services and Computer Systems segments continue to be major contributors to the bottom line. We are pleased with both our results and corporate initiatives and are confident that our capable employees and broad array of workforce, technology, and telecommunications solutions will provide us with the opportunity and ability to continue to grow our Company."

STAFFING SERVICES

The $34.7 million, or 7%, increase in sales in the fourth quarter of fiscal 2006 from the comparable fiscal 2005 period was due to a 12% increase in the Technical Placement division partially offset by a 1% decrease in the Administrative and Industrial division. The increase in operating profit of $8.7 million was due to the increase in sales, an increase in gross margin percentage, primarily due to an increase in high-margin direct placement business, reduced workers' compensation and payroll tax costs, and a decrease in overhead costs as a percentage of sales. The segment has been working closely with customers to better manage worker's compensation costs which are approximately $1.4 million below last year's run rate for the quarter. The most significant aspect of the reduction in overhead costs as a percentage of sales was a reduction of approximately $4.2 million in general insurance costs as a result of retrospective adjustments related to the division's positive claim experience.

COMPUTER SYSTEMS

The Computer Systems segment's sales increase of $3.0 million, or 7%, in the fourth quarter of fiscal 2006 over the comparable 2005 period was primarily due to increases of $5.5 million in new business as a result of the segment's acquisition of Varetis Solutions in December 2005 and an increase in the Maintech division's IT maintenance sales of $0.9 million partially offset by decreases in the segment's other divisions. The decrease in operating profit of $4.4 million was due to decreased gross margins, increases in overhead necessary to support the sales increase and additional amortization of intangible assets.

TELEPHONE DIRECTORY

The Telephone Directory segment's sales decrease of $0.4 million, or 2%, for the fourth quarter of fiscal 2006 from the comparable 2005 period resulted from decreases of $0.6 million, or 3%, in publishing sales due to the timing of delivery of telephone directories. The segment's operating profit increased by $0.6 million, or 13%, primarily due to increased gross margins.

TELECOMMUNICATIONS SERVICES

The Telecommunications Services segment's sales decrease of $16.1 million, or 36%, in the fourth quarter of fiscal 2006 over the comparable 2005 period was due to decreases of $14.5 million in the Construction and Engineering division and $1.6 million in the Network Enterprise Solutions division. The higher sales in the Construction and Engineering division in fiscal 2005 resulted from customer acceptance of several large construction jobs in that year. The segment sustained a loss of $1.7 million in the 2006 fourth quarter compared to an operating profit of $0.8 million in the prior year due to the decreased sales and higher overhead as a percentage of sales.

GENERAL CORPORATE EXPENSES

The decrease in General Corporate expenses compared to the 2005 quarter was related to higher professional fees and costs related to the first year compliance with the Sarbanes-Oxley Act in the 2005 quarter.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents, excluding restricted cash, was $38.5 million at the end of the quarter. At October 29, 2006, the Company had sold a participating interest in accounts receivable of $110.0 million under its securitization program and had the ability to finance an additional $90.0 million under the facility.

In addition, the Company may borrow under a $40.0 million revolving secured credit facility. The facility requires the maintenance of certain accounts receivable balances in excess of borrowings and terminates in April 2008 unless extended.

Effective December 19, 2006, the Company's wholly owned subsidiary, Volt Delta Resources ("Delta") entered into a stand-alone three year $70.0 million secured, syndicated, revolving credit agreement ("Delta Credit Facility") with Wells Fargo,N.A. as the administrative agent and arranger, and as a lender thereunder. Wells Fargo and the other three lenders under the Delta Credit Facility, Lloyd TSB Bank Plc, Bank of America, N.A and JPMorgan Chase also participate in the Company's $40.0 million revolving credit facility. Neither the Company nor Delta guarantee each other's facility but certain subsidiaries of both are guarantors of their respective parent companies. Under the Delta Credit Facility, Delta is required to pay down approximately $38.0 million in intercompany debt owed to the Company within 30 days of closing.

To view more of today's articles and comparables join us at www.marketgainer.com for a complimentary subscription to the most exciting online financial newsletter on the markets. No Credit Card information needed.

The Financial Information and Financial Content provided by Marketgainer.com is for informational purposes only and should not be used or construed as an offer to sell, a solicitation of an offer to buy, or endorsement, recommendations, or sponsorship of any company or security by Marketgainer.com. You acknowledge and agree that any request for information is unsolicited and shall neither constitute nor be construed as investment advice by Marketgainer.com to you. It is strongly recommended that you seek outside advice from a qualified securities professional prior to making any securities investment. Marketgainer.com does not provide or guarantee any legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or informational source.

All material herein was prepared by based upon information believed to be reliable. The information contained herein is not guaranteed by Market Gainer to be accurate, and should not be considered to be all-inclusive. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. Market Gainer is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission.

((M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data prepared by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com)).