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Acquisition boosts Corporate Resource revenue

August 20, 2010

Corporate Resource Services Inc. (OTCBB: CRRS.OB) posted a jump in revenue thanks, in part, to its acquisition of GT Systems Inc.

The New York-based staffing firm posted revenue of $32.5 million in its fiscal third quarter ended June 30, 2010, up 155.6% from $12.7 million in the same period in the previous year, according to a filing with the U.S. Securities and Exchange Commission this week.

Approximately 92% of the $19.8 million year-over-year increase was a result of Corporate Resource Services' acquisition on April 5 of GT Systems, a New York staffing firm, according to the SEC filing. The other 8% of the increase is the result of increased customer demand.

Third-quarter gross margin rose to 20.4% from 12.7% in the year-ago quarter.

Corporate Resource Services posted a third-quarter net loss of $736,000 compared with a net loss of $75,000 in the third quarter of the previous fiscal year.

Corporate Resource Services Inc. (OTCBB: CRRS.OB)
For the fiscal third quarter ended June 30, 2010, compared with the same period in the previous year.
Revenue: $32.5 million, +155.6%
Net loss: $736,000 vs. net loss of $75,000