In its earnings announcement Wednesday, ASGN Inc. (NYSE: ASGN) reported CEO Peter Dameris is stepping down from the role but will remain on the board. Theodore “Ted” Hanson, currently president of ASGN, will take on the role.

Separately, the Calabasas, California-based staffing provider reported first-quarter revenue jumped 34.8%, in part thanks to its acquisition of government services contractor ECS Federal LLC in April 2018. Looking at revenue on a pro forma basis, as if both ASGN and ECS had been combined at the beginning of 2017, revenue was up 10.7%.

At Apex, the company’s largest segment, revenue rose 12.6% in the first quarter to $606.1 million. The division includes Apex Systems, an IT staffing provider; Apex Life Sciences, which provides clinical and research staffing; and Creative Circle, which provides marketing/creative staffing. First-quarter gross margin at Apex narrowed to 28.9% in the first quarter from 29.5% in the year-ago quarter.

First-quarter revenue in the company’s Oxford segment fell 5.2% to $20.2 million. The segment provides technology, life sciences and other staffing; its divisions include Oxford Global Resources, CyberCoders and Life Sciences Europe. Oxford gross margin narrowed to 39.4% from 40.3%.

ECS provides services to the federal government; its revenue was $168.0 million in the first quarter. Gross margin was 17.6%.

In his announcement that he was stepping down from the CEO positions, Dameris told the company that his youngest son, who has been battling acute myeloid leukemia for more than a year, will require additional medical treatment. After a successful stem cell transplant in August 2018, Dameris’ son’s leukemia has returned, and the family is currently assisting their son with aggressive medical treatment.

Hanson, who will take the CEO role, joined ASGN as CFO of Apex Systems following ASGN’s acquisition of Apex Systems in May 2012. He was promoted to president of Apex Life Sciences LLC in January 2014; an executive VP of ASGN in January 2016; and president of ASGN in December 2016.

Quote

 “It has been my honor to guide this company and its talented employees for the past 15 years,” Dameris said. “At this time, I must step back so that I can devote all of my time and energy to what is most important — my children’s health and my family’s welfare.”

Guidance

For the second quarter, ASGN forecast revenue of $967.0 million to $977.0, a year-over-year increase of between 10.1% and 11.2%.

Share price and market cap

Shares in ASGN were down 7.30% to $63.00 as of 12:19 p.m. Eastern time today, and the company had a market cap of approximately $3.58 billion, according to FT.com.