Command Center Inc. (NasdaqCM: CCNI) reported second-quarter revenue fell 1.3%. The Denver-based industrial staffing provider said the decrease was driven by higher-than-normal turnover in sales positions as a result of the tight job market.

Gross margin also narrowed to 26.0% in the second quarter from 26.5% in the year-ago quarter. Command Center reported the decline was the result of increases in workers’ compensation costs and external workers’ wages and payroll taxes. It was partially offset by decreases in state unemployment expenses, per diem and transportation costs.

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“During the second quarter we began to identify and implement operational improvements to increase profitability and facilitate revenue growth,” said Rick Coleman, president and CEO of Command Center. “Our efforts, which began in late May, include strengthening our field management team, clarifying reporting structures, and adjusting bonus parameters for positions having a direct impact on both the company’s revenue and bottom line.”

Share price and market cap

Shares in Command Center were down 10.48% as of 10:46 a.m. Eastern time to $5.55. The company had a market cap of $27.6 million.