Customer Woes Cause Healthcare Services Group's First-Quarter Profits to Evaporate

Housekeeping and nutritional services provider Healthcare Services Group (NASDAQ: HCSG)reported its first-quarter results on Tuesday, April 17th. As expected, the company once againposted strong revenue growth thanks to its ability to upsell its existing customer base to its dining and nutritional services.

However, the company took investors by surprise by recording a large charge related to two of its customer accounts. The net result was that profits fell drastically during the period, and the company barely managed to eek out a profit.