Cross Country Healthcare Inc. (NASD: CCRN) reported nurse and allied staffing revenue rose 12.8 percent in the first quarter primarily due to an acquisition in December. However, first-quarter revenue in its physician staffing segment fell 2.0 percent primarily due to volume, according to the company. First-quarter revenue also fell 7.8 percent in its "other human capital management services." The segment includes retained search and education and training business lines.

Overall revenue at the Boca Raton, Fla.-based healthcare staffing firm rose 7.0 percent in the first quarter to $118.1 million; the company had forecast revenue of between $119 million and $121 million.

Gross margin narrowed to 25.8 percent from 26.2 percent in the year-ago quarter, and Cross Country posted a net loss of $782,000 compared to net income of $1.2 million in the first quarter of the previous year.

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“I am pleased with our performance in the quarter, particularly in our largest business, nurse and allied staffing, where we are experiencing good year-over-year growth, higher bill rates, increased pay/bill spreads and increased demand,” said Cross Country Healthcare President and CEO William Grubbs. “I am confident that in the coming quarters, we will see improved results in our overall business, reflecting the successful execution of our new strategy and the benefits of the investments we made in late 2013.”

Revenue

Revenue by segment

Gross margin

Net income

Guidance

Cross Country anticipates second-quarter revenue of between $121 million to $124 million, a year-over-year increase of between 9 percent and 12 percent.

Share price and market cap

Shares in Cross Country were down 4.04 percent in late morning trading to $5.76. The company had a market cap of $178.97 million, according to Yahoo!