The first-quarter loss narrowed at Analysts International Corp. (NASD: ANLY). The Minneapolis-based information technology staffing company reported a loss of $1.0 million for the most recent quarter, compared with $2.0 million a year ago.

Analysts International said the loss includes special charges of $1.9 million over lease restructurings, severance payments, costs for its new strategic plan, and advisory costs over the offer to buy the company by Koosharem Corp. that was rebuffed by Analysts International. Koosharem is the holding company of the Select Family of Staffing Companies.

Without the special costs, Analysts International said it would have turned a profit of $818,000 in the first quarter. And, excluding other special costs in the first quarter of 2007, the company said it would have posted a net loss of just $823,000.

First quarter revenue fell 7.1% to $82.8 million, compared with $89.1 million in the first quarter of 2007.

Gross margin improved to 17.7% from 16.4%.

The company also announced that Walter "Mic" Michels will serve as its interim CFO. Michels, the company's controller and assistant treasurer, will continue in those roles as well. Former CFO David Steichen left the company in March.

Analysts International Corp. (NASD: ANLY)
For the first quarter ended March 29, 2008, compared with the same period in 2007.
Revenue: $82.8 million, -7.1%
Net loss: $1.0 million vs. net loss of $2.0 million