"We continued to see signs of a recovery consistent with patterns observed since the fourth quarter of 2009," President and CEO Roger Ballou said.

The Philadelphia-based company's Management Recruiters International segment posted a 14.2% increase in revenue to $15.1 million. Second-quarter revenue also rose in its information technology solutions segment by 31.8% to $76.7 million.

However, second-quarter revenue fell by 7.0% to $110.2 million in its engineering solutions segment (which includes staffing). Revenue fell by 33.7% (31.6% in constant currency) in its AndersElite segment to $16.9 million. AndersElite provides construction staffing and has offices in the U.K. and Australia.

Second-quarter gross margin narrowed to 20.4% from 20.6% in the year-ago quarter.

CDI posted net income of $2.6 million compared with net income of $59,000 in the second quarter of 2009. The company said the second quarter included a benefit of $1.8 million from lower estimated penalties and legal fees related to a U.S. Department of Justice investigation into a claim involving alleged mischarging of time on some federal contracts.

CDI reported third-quarter revenue could rise 1% to 4% on a year-over-year basis. Including revenue from its recent acquisition of L. Robert Kimball & Associates, revenue could rise between 8% and 11%. Kimball, an Ebensburg PA-based provider of engineering services, was acquired by CDI in the second quarter.

CDI Corp. (NYSE: CDI)
For the second quarter ended June 30, 2010, compared with the same period in 2009.
Revenue: $219.0 million, +1.7%
Net income: $2.6 million vs. net income of $59,000