Second-quarter revenue declined 7.2% year over year at Comforce Corp. (AMEX: CFS) to $141.7 million as labor markets tightened during the global economic slowdown, the company reported.

However, Comforce announced second-quarter revenue was up $81,000 year over year in its Human Capital Management Services segment, which includes its PrO Unlimited division, a provider of vendor management services and payrolling services. Second-quarter revenue fell 19.7% in its Staff Augmentation segment.

Second-quarter gross margin at the Woodbury NY-based staffing firm narrowed to 14.3% from 16.0% in the second quarter of last year. Comforce cited pricing pressures, lower sales volume on higher margin services and a less favorable workers' compensation claim experience for the decrease.

Net income was $347,000 in the second quarter, down 74.3% from $1.3 million in the second quarter of 2008.

"While our results for the second quarter continued to be negatively impacted by the global economy, sequentially, we realized improved financial performance in key metrics including revenues, operating income and net income," Chairman and CEO John Fanning said in a statement. "The sequential improvement suggests stabilization in our business that we began to observe toward the end of the first quarter and continued into our second quarter."

Comforce Corp. (AMEX: CFS)
For the second quarter ended June 28, 2009, compared with the same period in 2008.
Revenue: $141.7 million, -7.2%
Net income: $347,000, -74.3%