Fortune Industries Inc. (AMEX: FFA), an Indianapolis-based provider of professional employer organization services, reported revenue fell 0.8% to $15.3 million in its fiscal third quarter ended March 31, 2010, compared with $15.4 million in the same period in the previous year.

"In January, we experienced a decrease in revenue, as our existing clients continued to downsize through layoffs and our overall worksite employee counts significantly decreased," CEO Tena Mayberry said. "However, in February our worksite employee counts began to trend up, and that positive trend has continued and gained momentum all the way through March. Field indicators predict that this trend will continue in the fourth quarter."

The PEO's third-quarter gross margin narrowed to 17.2% from 22.1% in the year-ago quarter.

Fortune posted a third-quarter net loss of $28,000 compared with net income of $471,000 in the same period last year.

Mayberry said unexpected workers' compensation claims impacted the bottom line.

Fortune Industries Inc. (AMEX: FFI)
For the fiscal third quarter ended March 31, 2010, compared with the same period in the previous year.
Revenue: $15.3 million, -0.8%
Net loss: $28,000 vs. net income of $471,000