CDI Corp. (NYSE: CDI) reported third-quarter revenue fell 20.6% (down 17.6% in constant currency) to $223.7 million from $281.9 million in the same period last year. The company noted revenue rose 3.8% from the second quarter, a time when revenue has historically remained flat.

President and CEO Roger Ballou said the company cut staff in the third quarter and plans more cuts in the fourth. But the cuts will end in the fourth quarter "if the economy remains on its current path of slow recovery," he said.

Third-quarter gross margin fell to 19.6% from 22.2% in the year-ago quarter.

CDI posted a third-quarter net loss of $12.2 million compared with net income of $8.1 million in the third quarter of 2008. The company reported an $800,000 in pre-tax severance charges for the most recent quarter as well as a $12.3 million fine imposed by the U.K.'s Office of Fair Trading. CDI said it would have posted net income of $600,000 without the charges.

CDI's AndersElite subsidiary was fined for alleged violation of the U.K.'s Competition Act of 1998 involving a boycott of another company in the supply of candidates to the construction industry. Several other staffing firms were fined as well.

CDI estimates fourth-quarter revenue will be down 12% to 16% on a year-over-year basis.

CDI Corp. (NYSE: CDI)
For the third quarter ended Sept. 30, 2009, compared with the same period in 2008.
Revenue: $223.7 million, -20.6%
Net loss: $12.2 million vs. net income of $8.1 million