Second-quarter revenue rose 10% at MPS Group Inc. (NYSE: MPS) to $589.5 million from $535.2 million in the same period last year. Excluding the impact of acquisitions and foreign currency exchange rates, revenue increased 5%.

"Despite the general negativity of the current economic environment, we continue to see demand for professional and IT talent," said CEO Timothy Payne. "We have seen some weakening in certain sectors, such as housing and financial services, and also in certain geographic areas."

Revenue in MPS' North American Professional Services segment rose 7%, or 4% excluding acquisitions, to $185.6 million. Direct hire fees rose 9%, and Special Counsel, the legal staffing division, posted a 22% year-over-year increase in revenue.

The company's North American Information Technology Services segment posted a 1% decline in revenue, or 3% decline excluding the impact of acquisitions and foreign currency exchange, to $158.2 million. The decrease came primarily as the result of a winding down of lower-margin client contracts in the company's Modis unit. Its Beeline vendor management system division posted a 41% year-over-year increase in revenue, excluding its acquisition of the Chimes VMS earlier this year.

Revenue increased 20% in MPS' International Professional Services unit and 24% in its International Information Technology Services division.

Overall company gross margin improved to 29.0% from 28.5%.

Second-quarter net income slipped 9% to $20.7 million from $22.9 million in the second quarter of last year.

MPS estimated third-quarter revenue of between $580 million and $600 million.

MPS Group Inc. (NYSE: MPS)
For the second quarter ended June 30, 2008, compared with the same period in 2007.
Revenue: $589.5 million, +10%
Net income: $20.7 million, -9%