Third-quarter net income at Kforce Inc. (NASD: KFRC) rose 24.7% year-over-year. The company reported net income of $11.0 million, up from $8.8 million in the third quarter of 2006.

Third-quarter revenue at the Tampa-based staffing company rose 9.8% to $262.1 million from $238.7 million in the same period last year. Gross margin improved to 36.7% from 35.8%.

"We believe the environment for professional staffing and government solutions remains positive, particularly in the skilled niches we serve," said CEO David Dunkel. "We continue to see strong demand for highly skilled workers both on a permanent and flexible basis. We believe this demand is being driven by both secular and cyclical trends that bode well for the future of Kforce."

Third-quarter technology staffing revenue rose 12.0% year-over-year to $132.3 million. Finance and accounting staffing revenue fell 12.5% to $56.0 million, but health and life sciences revenue rose 15.5% to $57.9 million. Kforce's government solutions division revenue rose 148.2% to $15.8 million, fueled by the company's acquisition of Bradson Corp. in the third quarter of 2006.

The company expects fourth-quarter revenue between $256 million to $262 million.

"With Q3 2007 results and what we believe are positive trends to being Q4 2007, we believe that 2007 will be our year to hit $1.0 billion in total revenues," said President William Sanders.

Kforce Inc. (NASD: KFRC)

For the third quarter ended Sept. 30, 2007, compared with the same period in 2006.

Revenue: $262.1 million, +9.8%