Kforce Inc. (NASD: KFRC) reported first-quarter revenue fell 2.0% compared with the first quarter of last year, but said revenue rose in its largest segment, technology.

The Tampa FL-based professional staffing firm posted first-quarter revenue of $226.7 million, down from $231.3 million in the first quarter of last year.

However, technology revenue, Kforce's largest segment, rose 1.8% year-over-year to $119.7 million.

Revenue fell in other segments. First-quarter finance and accounting revenue fell 1.1% to $40.1 million. Health and life sciences revenue fell 10.9% to $40.3 million. Government solutions revenue fell 5.1% to $26.5 million.

Kforce's gross margin narrowed to 30.1% from 31.2% in the year-ago quarter.

First-quarter net income fell 14.3% to $2.7 million from $3.2 million in the first quarter of 2009.

Kforce estimated second-quarter revenue of $238.0 million to $245.0 million, a year-over-year increase of 5.3% and 8.4%

Kforce Inc. (NASD: KFRC)
For the first quarter ended March 31, 2010, compared with the same period in 2009.
Revenue: $226.7 million, -2.0%
Net income: $2.7 million, -14.3%