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On Assignment Revenue Up 21%

February 18 2011

On Assignment Inc. (NASD: ASGN) reported today revenue for the fourth quarter ended Dec. 31, 2010, rose 21.2 percent from the year-ago quarter.

The Calabasas, Calif.-based life sciences, healthcare and technology staffing company reported fourth-quarter revenue of $121.2 million, compared to $99.9 million in the fourth quarter of 2009.

"We are very pleased that our quarterly revenue growth rate for the fourth quarter of 2010 was the fastest of the year," said Peter Dameris, president and CEO. "Our discipline in protecting our margins and our efforts in expense control are beginning to pay off as revenue growth returns."

Gross margin for the quarter was 34.9 percent compared to 33.2 percent in the year-ago quarter.

Prior to goodwill impairment and write-off of deferred loan costs, net income for the quarter was $2.8 million. However, as a result of the charges, the company posted a net loss of $13.7 million. The company had net income of $1.0 million in the year-ago quarter. On Assignment's goodwill impairment charge of $15.4 million was related to its nurse travel business.

The company's information technology and engineering segment posted fourth-quarter revenue of $54.2 million (a 52.5 percent jump over the 2009 fourth quarter). Life sciences contributed $30.9 million in fourth-quarter revenue (+34.5 percent). Revenue in the healthcare staffing and physician staffing segments fell from the fourth quarter of 2009. The company posted healthcare staffing revenue of $18.5 million (-13.1 percent) in the fourth quarter and physician staffing revenue of $17.5 million (-12.7 percent).

Revenue for the full year ended Dec. 31, 2010, was $438.1 million, a 5.1 percent increase over 2009. Gross margin for the year was 34.1 percent, up from 32.7 percent in the previous year. Due to the goodwill and loan write-off, the company posted a loss of $9.9 million in 2010, compared with net income of $4.7 million in 2009.

The company also issued guidance for the first quarter ending March 31, 2011. The company expects revenue to be between $120 million and $123 million, a year-over-year increase of between 24.6 percent and 27.7 percent. On Assignment also estimated first-quarter gross margin of around 33.3 percent. In addition, the company anticipates net income of between $2.1 million and $2.9 million.

On Assignment signed on Dec. 22, 2010, a letter of intent to acquire a clinical research staffing firm in Western Europe.

On Assignment Inc. (NASD: ASGN)
For the fourth quarter ended Dec. 31, 2010, compared with the same period in 2009.
Revenue: $121.2 million, +21.2 percent
Net loss: $13.7 million vs. net income of $1.0 million

For full-year ended Dec. 31, 2010, compared with the previous year.
Revenue: $438.1 million, +5.1 percent
Net loss: $9.9 million vs. net income of $4.7 million


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