"The industry appears to be entering a modest recovery phase with second-quarter consolidated revenues growing sequentially for the first time in seven quarters," Nowakowski said.

Second-quarter revenue at AMN rose 4.2% compared with the first quarter.

AMN posted total revenue for the second quarter of $149.3 million compared with $199.1 million in the year-ago quarter and $143.3 million in the first quarter.

Second-quarter nursing and allied healthcare staffing revenue fell 32.0% on a year-over-year basis to $75.6 million but rose 0.6% sequentially.

Locum tenens revenue fell 17.4% year-over-year to $65.3 million but rose 8.2% sequentially.

Physician permanent placement revenue fell 6.5% from the year-ago quarter to $8.3 million but was up 7.9% from the first quarter.

Second-quarter gross margin improved to 27.6% from 27.0% in the year-ago quarter.

AMN posted net income of $137,000 in the second quarter, down 96.9% from $4.4 million in the same period last year. The company had a restructuring charge of $2.2 million in the second quarter of 2009.

The company estimated third-quarter revenue will rise 4% to 6% from the second quarter excluding the impact of acquisitions.

AMN ranked as the largest healthcare staffing firm on Staffing Industry Analysts' 2010 list of largest U.S. healthcare staffing firms.

Separately, AMN also announced Wednesday that it acquired Medfinders, the seventh-largest U.S. staffing firm.

AMN Healthcare Services Inc. (NYSE: AHS)
For the second quarter ended June 30, 2010, compared with the same period in 2009.
Revenue: $149.3 million, -25.0%
Net income: $137,000, -96.9%