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On Assignment revenue falls 2.9%

February 20 2009

Fourth-quarter revenue at On Assignment Inc. (NASD: ASGN) fell 2.9% year-over-year to $147.6 million. However, gross margin and physician staffing revenue rose.

Fourth-quarter gross margin increased to 32.9% from 31.8% a year ago.

In addition, On Assignment's fourth-quarter physician staffing revenue increased 19.9% year-over-year to $23.2 million.

Revenue in the Calabasas CA-based company's other segments declined. Life sciences revenue fell 12.3% to $30.8 million; information technology and engineering revenue fell 3.8% to $51.3 million and healthcare staffing revenue fell 4.4% to $42.3 million.

On Assignment's healthcare revenue includes allied and travel nurse staffing. Fourth-quarter allied revenue rose 1.7% to $13.1 million. Travel nurse revenue fell 6.9% to $29.2 million. However, the fourth quarter of 2007 included $2.6 million in revenue from two long-time customers with labor disruptions. Excluding the $2.6 million in that quarter, fourth-quarter 2008 travel nurse revenue rose 1.6% year-over-year.

Fourth-quarter net income was $3.5 million, up 59.5% from $2.2 million in the same period last year.

Full-year 2008 revenue rose 9.0% to $618.1 million, and gross margin rose to 32.3% from 31.7%.

Full-year net income rose to $19.0 million from $9.3 million.

On Assignment estimated first-quarter revenue of $119 million to $124 million, a year-over-year decrease of 18.6% to 21.9%.

On Assignment Inc. (NASD: ASGN)
For the fourth quarter ended Dec. 31, 2008, compared with the same period in the previous year.
Revenue: $147.6 million, -2.9%
Net income: $3.5 million, +59.5%

For the full year ended Dec. 31, 2008, compared with the previous year.
Revenue: $618.1 million, +9.0%
Net income: $19.0 million, +103.5%

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