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First-quarter revenue rose 74.3% to $236.0 million at CBS Personnel Holdings Inc. from $135.4 million in the first quarter of last year, according to a filing with the U.S. Securities and Exchange Commission by its parent company, Compass Diversified Holdings (NASD: CODI). Gross margin slipped to 16.7% from 17.7%.
Compass Diversified said CBS' revenue got a boost from the acquisition of Staffmark, a staffing firm that works primarily in the light industrial market. CBS announced the deal Dec. 19 and it closed in January. CBS' first-quarter revenue would have fallen by $9.6 million without the Staffmark revenue, according to the filing
"The reduction reflects reduced demand for staffing services, (primarily clerical), as clients were affected by weaker economic conditions," Compass Diversified said in its filing with the SEC. "We expect this trend to continue through fiscal 2008 as the economy continues to soften."