Second-quarter revenue fell 42.6% year over year at Hudson Highland Group Inc. (NASD: HHGP) to $173.8 million. The New York-based professional staffing firm reported second-quarter gross margin narrowed to 37.3% from 44.3%.

"While we expect the environment to remain challenging, I believe that we have weathered the worst of the declines and there is evidence that market demand levels are beginning to stabilize," Chairman and CEO Jon Chait said in a statement.

The company posted a net loss of $17.8 million in the second quarter compared with net income of $5.0 million in the year-ago quarter.

Hudson reported it took a $3.6 million related to severances and lease terminations in the second quarter and expects another $1 million to $4 million in restructuring charges for the third quarter.

Hudson Highland Group Inc. (NASD: HHGP)
For the second quarter ended June 30, 2009, compared with the same period in 2008.
Revenue: $173.8 million, -42.6%
Net loss: $17.8 million vs. net income of $5.0 million