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On Assignment revenue slips 32%

February 19 2010

On Assignment Inc. (NASD: ASGN) said fourth-quarter revenue fell 32.3% on a year-over-year basis, but gross margin improved.

The Calabasas CA-based staffing firm reported fourth-quarter revenue of $99.9 million, down from $147.6 million in the fourth quarter of 2008.

Fourth-quarter gross margin, however, rose to 33.2% from 32.9% in the year-ago quarter.

Year-over-year change in fourth-quarter revenue by segment included:
-Life sciences revenue fell 25.6% to $22.9 million
-Allied healthcare revenue fell 10.0% to $11.8 million
-Nurse travel revenue fell 67.3% to $9.6 million
-Physician staffing revenue fell 13.6% to $20.1 million
-Information technology and engineering revenue fell 30.6% to $35.6 million

Fourth-quarter gross margin improved on a year-over-year basis in both the nurse travel and physician staffing segments -- rising to 24.6% from 23.5% in the year-ago quarter in nurse travel and rising to 34.3% from 31.9% in physician staffing.

Fourth-quarter net income fell 70.7% to $1.0 million from $3.5 million in the same period last year.

On Assignment's full-year revenue fell 32.6% to $416.6 million. Full-year gross margin edged up to 32.7% from 32.3%.

Full-year 2009 net income fell 75.2% to $4.7 million from $19.0 million in 2008.

On Assignment estimated first-quarter revenue at between $95.0 million and $99.0 million, a year-over-year decline of approximately 15% to 18%.

It estimated first-quarter gross margin at between 32.4% and 32.6%. It had reported gross margin of 31.7% in the first quarter of 2009.

On Assignment Inc. (NASD: ASGN)
For the fourth quarter ended Dec. 31, 2009, compared with the same period in the previous year.
Revenue: $99.9 million, -32.3%
Net income: $1.0 million, -70.7%

For the full year ended Dec. 31, 2009, compared with the previous year.
Revenue: $416.6 million, -32.6%
Net income: $4.7 million, -75.2%


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