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Cross Country revenue slips 2%

May 07, 2009

Cross Country Healthcare Inc. (NASD: CCRN) reported first-quarter revenue fell 2.1% year-over-year to $175.4 million. First-quarter revenue got a boost by the acquisition in July of Medical Doctor Associates, a locum tenens staffing firm, without which revenue would have declined further.

CEO Joseph Boshart cited economic headwinds affecting all segments of the company's business, especially nurse and allied staffing.

First-quarter nurse and allied staffing revenue fell 25.3% year-over-year to $105.0 million. The segment, which includes per diem nurses, travel nurses and travel allied health, accounted for 60% of Cross Country's first-quarter revenue.

Boshart said nurse and allied trends remain negative. "Open orders for travel nurses appear to have stabilized over the past two months, but at levels that will likely lead to further declines in [full-time equivalent] staffing volume over at least the next two quarters if we do not see a pickup in demand from current levels," he said.

First-quarter gross margin improved to 25.7% from 25.2% in the first quarter of last year.

Net income fell 48.1% year-over-year to $3.0 million.

The Boca Raton FL-based healthcare staffing firm estimated second-quarter revenue of between $153.0 million to $156.0 million, implying a year-over-year decline of 8.7% to 10.5%.

Cross Country Healthcare Inc. (NASD: CCRN)
For the first quarter ended March 31, 2009, compared with the same period in 2008.
Revenue: $175.4 million, -2.1%
Net loss: $3.0 million, -48.1%