AMN Healthcare Services Inc. (NYSE: AHS), the largest U.S. healthcare staffing firm, posted a 42.6% year-over-year decline in first-quarter revenue, but gross margin improved.

The San Diego-based company reported first-quarter revenue of $143.3 million compared with $249.6 million in the first quarter of last year.

Nurse and allied healthcare staffing revenue in the first quarter tumbled 54.1% to $75.2 million from the year-ago quarter. Locum tenens revenue fell 19.3% to $60.4 million. Physician permanent placement revenue declined 29.6% to $7.7 million.

Nurse and allied staffing revenue rose 1.6% compared to the fourth quarter. President and CEO Susan Nowakowski said it was the first sequential increase for that segment since 2008, but it was offset by sequential decreases in locum tenens and physician permanent placement.

First-quarter gross margin improved to 27.9% from 25.6% in the first quarter of last year.

AMN also swung to a profit of $780,000 from a net loss of $121.8 million a year ago.

AMN Healthcare Services Inc. (NYSE: AHS)
For the first quarter ended March 31, 2010, compared with the same period in 2009.
Revenue: $143.3 million, -42.6%
Net income: $780,000 vs. net loss of $121.8 million