Cross Country Healthcare Inc. (NASD: CCRN) reported second-quarter revenue rose 7.0 percent on a year-over-year basis. The Boca Raton, Fla.-based healthcare staffing firm’s revenue was $126.0 million in the quarter, compared with $117.8 million a year ago.

Revenue from Cross Country’s nurse and allied staffing division, which accounts for more than half of the company’s revenue, rose 14.1 percent to $68.3 million. Clinical trial services revenue at the company rose 4.3 percent to $16.5 million.

Revenue slipped in the company’s other two divisions. Physician staffing revenue dropped 2.1 percent to $30.6 million, and revenue in other human capital management services fell 2.4 percent to $10.7 million. The HCM segment includes education, training and retained search.

“The strongest momentum was generated in our largest segment, nurse and allied staffing, of which the sequential improvement was seasonally atypical for us,”said President and CEO Joseph Boshart. “Currently, the number of FTEs on contract in this segment is up more than 20 percent year-over-year.”

Gross margin slipped 110 basis points in the second quarter to 27.5 percent, due in part to higher housing costs in the nurse and allied staffing business, along with a shift in the mix of consolidated revenue toward this faster-growing, but lower-margin segment.

Net income rose 33.5 percent to $1.6 million, due to a lower-than-expected tax rate.

The company expects third-quarter revenue of between $128.0 million and $130.0 million, an increase of between 10.6 percent and 12.4 percent from year-ago third-quarter revenue of $115.7 million.

Cross Country Healthcare (NASD: CCRN)
For the quarter ended June 30, 2011, compared with the year-ago period
Revenue: $126.0 million, +7.0 percent
Net income: $1.6 million, +33.5 percent