GEE Group Inc. (NYSE MKT: JOB) reported net revenue rose 19.2% to $21.0 million in its fiscal first quarter ended Dec. 31.

Gross margin at the Naperville, Ill.-based staffing provider narrowed to 25.9% from 30.0% in the year-ago quarter. The change in the overall gross margin was primarily due an overall increase in contract staffing revenue and a change in revenue mix year over year, as well as greater direct placement revenue — which is recorded at 100% gross margin — for the prior year’s fiscal first quarter.

The company attributed the revenue mix shift to the execution of its strategic plan to focus on the higher margin and more profitable professional staffing and solutions services sectors through organic growth and acquisitions.

GEE Group’s recent acquisitions include Scribe Solutions, Agile Resources, Access Data Consulting and Paladin Consulting Inc.

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“We are pleased with GEE’s solid first-quarter performance and are encouraged that our business has gained momentum in January and February,” said Chairman and CEO Derek Dewan. “Our leadership teams have made concerted efforts to add sales and delivery talent in addition to beefing up our recruiting capabilities. Thus, we expect to realize the benefits of these investments translating into increased organic revenue growth and profitability for the remainder of this fiscal year. In addition, we anticipate completing significant strategic acquisitions that will be accretive to earnings and add extensively to our service delivery network.”

Revenue by segment

GEE Group in July changed its name from General Employment Enterprises Inc. to facilitate its focus on the IT and professional sectors.

Share price and market cap

GEE Group shares rose 0.27% today in early afternoon trading to $4.64 and the company has a market cap of $43.54 million, according to Yahoo.