Cross Country Healthcare Inc. (NASD: CCRN), a Boca Raton FL-based healthcare staffing firm, announced second-quarter revenue fell 12.8% year over year to $149.0 million.

Second-quarter nurse and allied revenue fell 40.8% year over year to $78.6 million. Clinical trials services revenue declined 22.1% to $19.4 million.

Cross Country posted physician staffing revenue of $40.7 million. The firm reported no physician staffing revenue in the second quarter of 2008. Cross Country acquired Medical Doctors Associates, a locum tenens staffing firm, in July 2008. However, the company said demand for temporary physician staffing weakened year over year as staff at hospitals and practice groups appear to be delaying plans for retirement based in part on the economy. A reduction in elective surgeries also reduced the need for surgical and anesthesia specialties, it reported

Gross margin improved to 27.4% in the second quarter compared with 26.7% in the same period last year.

The company posted second-quarter net income of $2.3 million, down 64.0% from $6.4 million in the year-ago quarter.

"While the market challenges we face remain significant, and the fall-off in our business activity over the past nine months has been unprecedented, for the first time since the third quarter of 2008 we can see signs that the extreme pressure on our business is easing," resident and CEO Joseph Boshart said in a statement. "For example, in our largest business segment, nurse and allied staffing demand has more than doubled from what it was in early June."

Cross Country estimated third-quarter revenue of between $130.0 million to $133.0 million, down 25.3% to 27.0% year over year.

Cross Country Healthcare Inc. (NASD: CCRN)
For the second quarter ended June 30, 2009, compared with the same period in 2008.
Revenue: $149.0 million, -12.8%
Net income: $2.3 million, -64.0%