Cross Country Healthcare Inc. (NASDAQ: CCRN) reported second-quarter revenue edged down 0.9% year over year and gross margin narrowed. Revenue rose in the firm’s largest segment, nurse and allied staffing, but fell in physician search and its “other human capital management services” business.

“While we are in the early stages of our turnaround, we are making solid progress across many fronts, including investing in revenue-generating resources and technology, along with refining our go-to-market strategies,” CEO Kevin Clark said.

However, the Boca Raton, Florida-based firm posted a net loss of $51.7 million.

Cross Country reported $1.6 million in legal settlement charges during the second quarter. The charges were related to a medical malpractice lawsuit and a California wage-and-hour class action settlement that is subject to court approval, according to the company. It also reported $14.5 million in impairment charges, a noncash charge related to the nurse and allied staffing trade names resulting from the rebranding initiative in the second quarter.

Revenue by segment

Guidance

Cross Country forecast third-quarter revenue will range from flat to up 2% on a year-over-year basis.

Share price and market cap

Shares in Cross Country were up 3.27% to $9.80 as of 11:52 a.m. Eastern time; the company had a market cap of $349.5 million, according to FT.com.