Cross Country Healthcare Inc. (NASD: CCRN) reported first-quarter revenue fell 30.8% to $121.4 million from the year-ago quarter, but gross margin improved.

The Boca Raton FL-based healthcare staffing firm said the economic environment continued to cut demand for travel nurse and allied health staffing. In addition, it said the recession and weak housing market have delayed doctors' retirement plans resulting in less demand for locum tenens.

First-quarter nurse and allied staffing revenue fell 38.4% year-over-year to $64.7 million. Physician staffing revenue fell 18.6% to $31.1 million.

Cross Country's first-quarter clinical trials services revenue fell 27.7% to $15.2 million, and revenue in its other human capital management services category fell 6.9% to $10.4 million.

First-quarter gross margin at Cross Country improved to 27.7% from 25.0% in the year-ago quarter.

Net income fell 62.6% to $1.1 million from $3.0 million in the first quarter of last year.

The company estimated second-quarter revenue to be down 19.5% to 21.5% on a year-over-year basis.

Cross Country Healthcare Inc. (NASD: CCRN)
For the first quarter ended March 31, 2010, compared with the same period in 2009.
Revenue: $121.4 million, -30.8%
Net income: $1.1 million, -62.6%