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Administaff revenue falls 7%

November 02, 2009
Staffing Industry Analysts North American Daily News

Revenue fell 7.3% at Administaff Inc. (NYSE: ASF), a Texas-based professional employer organization, to $390.9 million in the third quarter ending Sept. 30 from $421.9 million in the same period last year.

The average number of worksite employees paid per month fell 9.9% to 107,625 in the third quarter from 119,389 in the third quarter of 2008.

Gross margin fell to 18.2% from 20.3% in the year-ago quarter. The company said gross profit fell as workers increased their use of health benefits, including increased participation in COBRA.

Third-quarter net income fell 51.1% to $5.8 million from $11.9 million in the third quarter of 2008.

Administaff's third-quarter earnings per share of 23 cents beat analysts' estimate of 22 cents as reported by Yahoo.com.

Administaff Inc. (NYSE: ASF)
For the third quarter ended Sept. 30, 2009, compared with the same period in 2008.
Revenue: $390.9 million, -7.3%
Net income: $5.8 million, -51.1%