Volt Information Sciences Reports Second Quarter Results

NEW YORK--(Business Wire)--
Volt Information Sciences, Inc. (NYSE: VOL) today reported financial results for
the Company`s second quarter and six months ended May 3, 2009.

Volt will conduct a conference call webcast at 12:00 P.M. (EST) today to discuss
second quarter results. The conference call dial-in number is 1-888-396-9927
(toll free) or 1-517-308-9172 (international), passcode: SECOND 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.

SECOND QUARTER FISCAL 2009 RESULTS

For the second quarter of fiscal 2009 ended May 3, 2009, the Company reported a
net loss of $8.7 million, or ($0.42) per share, compared to net income of $3.4
million, or $0.15 per share, in the fiscal 2008 second quarter. Net sales from
continuing operations for the 2009 quarter decreased to $447.1 million, compared
to $605.1 million in last year`s comparable quarter.

The Company reported a loss from continuing operations in the second quarter of
fiscal 2009 of $8.7 million, or ($0.42) per share, compared to income from
continuing operations of $1.3 million, or $0.06 per share, in the fiscal 2008
second quarter. As previously announced during the second quarter, the Company
consolidated operations within its Staffing Services segment to reduce
redundancies and achieve economies of scale and efficiencies. As a result of
these changes, which included office consolidations, the segment incurred a
restructuring charge of $4.5 million ($2.7 million, or $0.13 per share, net of
taxes) in the second quarter of fiscal 2009. In addition, the Computer Systems
segment recorded an impairment charge of $1.2 million ($0.7 million, or $0.04
per share, net of taxes) based upon its annual testing, in the second quarter of
fiscal 2009, of goodwill and intangibles.

SIX MONTHS - FISCAL 2009 RESULTS

For the first six months of fiscal 2009 ended May 3, 2009, the Company reported
a net loss of $21.7 million, or ($1.04) per share, compared to a net loss of
$9.8 million, or ($0.44) per share, in the fiscal 2008 six-month period. Net
sales from continuing operations for the first six months of fiscal 2009
decreased to $946.8 million, compared to $1.2 billion in last year`s comparable
period.

The Company reported a loss from continuing operations in the 2009 six-month
period of $21.7 million, or ($1.04) per share, compared to a loss from
continuing operations of $12.3 million, or ($0.56) per share, in the fiscal 2008
six-month period. The Company incurred a restructuring charge of $7.1 million
($4.2 million, or $0.20 per share, net of taxes) and goodwill and long-lived
intangible impairment charges of $7.3 million ($6.8 million, or $0.32 per share,
net of taxes) in the first six months of fiscal 2009 as compared to a
restructuring charge of $1.5 million in the comparable fiscal 2008 period.

Commenting on the results for the second quarter, Mr. Steven A. Shaw, President
and CEO of Volt, stated "The Company is taking actions necessary to align our
costs with the declines in revenue caused by the current economic environment.
The $4.5 million restructuring charge taken in the quarter is the result of
combining the Technical and Administrative and Industrial divisions of the
Staffing Services segment. This consolidation allows us to continue to provide a
complete set of workforce solutions to our customers while significantly
reducing operating costs on a go-forward basis."

STAFFING SERVICES

The $121.8 million, or 24%, decrease in net sales in the second quarter of
fiscal 2009 from the comparable fiscal 2008 period was due to a $111.8 million
decrease in the Staffing Solutions division and a $10.0 million decrease in the
Technology and Consulting division which consists of the Procurestaff and VMC
Consulting operations. The segment reported an operating loss of $1.0 million
for the second quarter of fiscal 2009 compared to an operating profit of $6.2
million in the comparable fiscal 2008 period. The decrease in operating profit
was due to a $13.1 million decrease in the Staffing Solutions division`s
operating profit, partially offset by a $5.9 million increase in the Technology
and Consulting division`s operating profit.

The decreases in sales and operating profit in the Staffing Solutions division
were due to the economic downturn and the division`s consolidation of operations
which resulted in a $4.3 million restructuring charge in the second quarter of
fiscal 2009. Many of the division`s customers have initiated layoffs, hiring
freezes and reductions in contingent labor which resulted in lower sales for the
quarter. In addition, operating profit was affected by reduced gross margins due
to lower markups.

Despite the decrease in sales in the Technology and Consulting division, the
increase in this division`s operating profit was due the absence of several VMC
Consulting projects which incurred losses in the prior comparable period and
lower overhead due to staff reductions and a restructuring charge of $0.2
million, as well as the absence in the second quarter of fiscal 2009 of start up
costs for several new projects.

COMPUTER SYSTEMS

The Computer Systems segment`s sales decrease of $7.7 million, or 15%, in the
second quarter of fiscal 2009 from the comparable 2008 period was primarily the
result of a decline in project revenue and the transition of a major customer to
a variable transaction-based pricing model from a fixed monthly fee model. The
segment reported an operating loss of $1.0 million in the second quarter of
fiscal 2009 compared to an operating profit of $5.3 million in the comparable
fiscal 2008 period. The decrease in operating profit was primarily attributable
to the decline in sales. In addition, the segment recorded an impairment charge
of $1.2 million based upon its annual testing, in the second quarter of fiscal
2009, of goodwill and intangibles.

TELECOMMUNICATIONS SERVICES

The Telecommunications Services segment`s sales decrease of $29.2 million, or
60%, in the second quarter of fiscal 2009 over the comparable 2008 period was
due to decreases of $27.0 million in the Construction and Engineering division
and a $2.2 million decrease in the other divisions. The decreases in this
segment`s sales and operating profit were primarily due to the absence in 2009
of revenue recognized on a large installation contract as well as higher margin
projects which were completed in the second quarter of fiscal 2008. The decrease
in operating profit was partially reduced by lower overhead due to cost cutting
initiatives and the completion of a large installation contract and other
projects.

PRINTING and OTHER

The Printing and Other segment`s sales decrease of $0.2 million, or 11%, for the
second quarter of fiscal 2009 from the comparable 2008 period resulted from a
decrease in Uruguay printing revenue. The segment reported an operating loss of
$0.6 million compared to an operating loss of $0.8 million in the prior
comparable period. Despite the decreased sales volume, the improved operating
results were due to decreases in selling and administrative expenses.

DISCONTINUED OPERATIONS

As previously announced, the Company sold the net assets of its directory
systems and services business as well as its North American publishing
operations. The results of operations attributable to those divested assets for
the second quarter of fiscal 2008 have been reclassified from the previously
reported Telephone Directory segment into Discontinued Operations. The $2.1
million of net income of the discontinued operations in the second quarter of
fiscal 2008 was primarily from the North American publishing operations.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents, excluding restricted cash, totaled $141.5 million at
the end of the second fiscal quarter of 2009.

At May 3, 2009, the Company had sold a participating interest in accounts
receivable of $50.0 million under its securitization program and had the ability
to finance an additional $125.0 million under the program. In addition, the
Company may borrow under a $42.0 million five-year unsecured revolving credit
facility ("Credit Facility") and the Company`s wholly owned subsidiary, Volt
Delta Resources ("Volt Delta"), may borrow under a separate $75.0 million
revolving secured credit facility ("Delta Credit Facility"). At May 3, 2009, the
Company had borrowed $10.7 million under its Credit Facility and Volt Delta had
borrowed $41.7 million under the Delta Credit Facility.

Volt Information Sciences, Inc. 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 200 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 and the Computer
Systems segments, provide 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.

This press release contains forward-looking statements which are subject to a
number of known and unknown risks that could cause actual results, performance
and achievements to differ materially from those described or implied in the
forward-looking statements.These risks include general economic, competitive and
other business conditions, the degree and timing of customer utilization of the
Company`s staffing services, the rate of renewals of contracts with the Company,
potential employment and customer-related liability, new and expanded government
regulations, continued access to qualified employees, continued compliance with
loan agreements and the other risks described in the Company`s filings with the
Securities and Exchange Commission, including its Annual Report on Form
10-K.Copies of the Company`s latest Annual Report on Form 10-K and subsequent
Quarterly Report(s) on Form 10-Q, as filed with the Securities and Exchange
Commission and the New York Stock Exchange, are available without charge upon
request to Volt Information Sciences, Inc., 1600 Stewart Avenue, Suite 100,
Westbury, NY 11590, 516-228-6700, Attention: Shareholder Relations.These and
other SEC filings by the Company are also available to the public over the
Internet at the SEC`s website at http://www.sec.gov and at the Company`s website
at http://www.volt.com in the Investor Information section.

VOLT INFORMATION SCIENCES, INC.
AND SUBSIDIARIES
SUMMARY OF OPERATIONS
(UNAUDITED)

SECOND QUARTER ENDED SIX MONTHS ENDED
May 3, April 27, May 3, April 27,
2009 2008 2009 2008
(In thousands, except per share dollar amounts)

Net sales $ 447,068 $ 605,087 $ 946,767 $ 1,186,141

(Loss) income from continuing operations before minority interest and income taxes ($11,930 ) $ 2,312 ($30,700 ) ($19,428 )
Minority interest (38 ) 44 314 77
(Loss) income from continuing operations before income taxes (11,968 ) 2,356 (30,386 ) (19,351 )
Income tax benefit (provision) 3,280 (1,055 ) 8,640 7,014
(Loss) income from continuing operations before items shown below (8,688 ) 1,301 (21,746 ) (12,337 )
Income from discontinued operations - Note C - 2,069 - 2,499
Net (loss) income ($8,688 ) $ 3,370 ($21,746 ) ($9,838 )

Per Share Data
Per share - basic and diluted:
Net (loss) income from continuing operations before items shown below ($0.42 ) $ 0.06 ($1.04 ) ($0.56 )
Income from discontinued operations - 0.09 - 0.12
Net (loss) income ($0.42 ) $ 0.15 ($1.04 ) ($0.44 )

Weighted average number of shares outstanding - basic 20,843 21,991 20,843 22,146
Weighted average number of shares outstanding - diluted 20,843 22,016 20,843 22,146

(Notes Follow)

VOLT INFORMATION SCIENCES, INC.
AND SUBSIDIARIES
SUMMARY OF RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)

SECOND QUARTER ENDED SIX MONTHS ENDED
May 3, April 27, May 3, April 27,
2009 2008 2009 2008
Net Sales: (Dollars in thousands)

Staffing Services -- Note A
Traditional Staffing $ 372,812 $ 491,771 $ 785,462 $ 960,342
Managed Services 329,900 339,173 585,649 635,718
Total Gross Sales 702,712 830,944 1,371,111 1,596,060
Less: Non-Recourse Managed Services (318,792 ) (325,230 ) (562,203 ) (608,542 )
Net Staffing Services 383,920 505,714 808,908 987,518
Printing and Other 2,138 2,399 7,990 7,628
Telecommunications Services 19,960 49,240 44,336 96,443
Computer Systems 44,460 52,140 92,947 102,923
Elimination of inter-segment sales (3,410 ) (4,406 ) (7,414 ) (8,371 )

Total Net Sales $ 447,068 $ 605,087 $ 946,767 $ 1,186,141

(Loss) Income before Minority Interest and Income Taxes
Staffing Services ($1,036 ) $ 6,225 ($11,638 ) $ 11,694
Printing and Other (607 ) (795 ) (419 ) (908 )
Telecommunications Services 99 1,896 53 (17,269 )
Computer Systems (1,019 ) 5,358 1,409 8,610
Total Segment Operating (Loss) Profit (2,563 ) 12,684 (10,595 ) 2,127

General corporate expenses - Note B (7,945 ) (8,608 ) (17,721 ) (17,512 )
Total Operating (Loss) Profit (10,508 ) 4,076 (28,316 ) (15,385 )

Interest income and other (expense), net (414 ) (158 ) (45 ) (506 )
Interest expense (875 ) (1,561 ) (2,488 ) (3,183 )
Foreign exchange (loss) gain, net (133 ) (45 ) 149 (354 )

(Loss) Income from Continuing Operations before Minority Interest and Income Taxes ($11,930 ) $ 2,312 ($30,700 ) ($19,428 )

(Notes Follow)

VOLT INFORMATION SCIENCES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Unaudited)

May 3 Nov 2,
2009 2008
Assets (Dollars in thousands)
Current Assets
Cash and cash equivalents $ 141,492 $ 120,929
Restricted cash -- Note A 27,838 48,581
Short-term investments 4,125 4,178
Trade receivables, net 382,132 488,482
Inventories 23,167 29,025
Recoverable income taxes 10,838 -
Deferred income taxes 7,800 9,685
Prepaid and other assets 30,830 36,684
Total Current Assets 628,222 737,564

Property, plant and equipment, net 61,177 68,173
Insurance and other assets 1,882 1,276
Deferred income taxes 19,111 17,081
Goodwill 51,442 57,481
Other intangible assets, net 39,036 44,204
Total Assets $ 800,870 $ 925,779

Liabilities and Stockholders` Equity
Current Liabilities
Short -term borrowings, including current portion of long-term debt $ 105,756 $ 108,216
Accounts payable 190,488 215,265
Accrued wages and commissions 40,235 50,918
Accrued taxes other than income taxes 15,889 22,227
Accrued insurance and other accruals 31,861 33,327
Deferred income and other liabilities 15,210 14,183
Income taxes payable - 55,569
Total Current Liabilities 399,439 499,705

Long-term debt 11,737 12,082
Deferred income 2,707 3,360
Income taxes 937 937
Deferred income taxes 13,169 14,551
Minority interest 635 2,010
Stockholders` Equity 372,246 393,134
Total Liabilities and Stockholders` Equity $ 800,870 $ 925,779

(Notes Follow)

VOLT INFORMATION SCIENCES, INC. AND SUBSIDIARIES
SUMMARY OF RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)

A - Under certain contracts with customers, the Company manages the customers` alternative staffing requirements, including transactions between the customer and other
staffing vendors ("associate vendors"). When payments to associate vendors are subject to the receipt of the customers` payment to the Company, the arrangements are
considered non-recourse against the Company and revenue, other than management fees to the Company, is excluded from sales. Cash restricted to cover such obligations is
segregated from cash and cash equivalents on the balance sheet.

B - Segment operating profit (loss), a non-GAAP measure, is comprised of net sales less cost of sales (direct costs and overhead). In computing segment operating profit
(loss), none of the following items have been added or deducted: general corporate expense; interest expense; fees related to sales of accounts receivable; interest
income and income taxes.

General corporate expenses, a non-GAAP measure, consist of the costs incurred in the operation of the Company`s shared service centers, and include, among other items,
enterprise resource planning, human resources, corporate accounting and finance, treasury, legal and executive functions. In order to leverage the Company`s
infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions
are included within general corporate expenses as they are not directly allocable to a specific segment.

C - The following summarizes the income from discontinued operations:

Three Months Ended Six Months Ended
April 27, 2008 April 27, 2008

Sales $ 17,025 $ 27,509

Income from discontinued operations before income taxes $ 3,452 $ 4,170
Income tax provision (1,383 ) (1,671 )
Income from discontinued operations $ 2,069 $ 2,499

Volt Information Sciences, Inc.
Jack Egan and Ron Kochman
212-704-2400
voltinvest@volt.com

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