Tokyo-based staffing firm Pasona Group Inc. reported signs that a drop in new orders has bottomed out, but still cut its forecast for full-year revenue by 7.8% to 218.54 billion yen (US$2.24 billion).

Pasona also reported revenue for the first nine months of its fiscal year fell 5.1% year-over-year to 168.62 billion yen (US$1.72 billion). Its fiscal year ends May 31, and the first nine months ended Feb. 28.

Direct hire was hit harder than temporary employment with a 20.3% year-over-year decline in revenue to 4.75 billion yen (US$48.6 million). Temporary staffing revenue fell 5.7% year-over-year in the first nine months of the fiscal year to 147.93 billion yen (US$1.51 billion).

Gross margin narrowed to 20.0% from 20.8% in the same period in the previous fiscal year.

Pasona announced a net loss of 607.0 million yen (US$6.2 million) compared with net income of 2.35 billion yen in the first nine months of the previous year.

More than 90% of Pasona's revenue comes from Japan.

Pasona Group Inc.
For the first nine months of its fiscal year ending Feb. 28, 2009, compared with the same period in the previous year.
Revenue: 168.62 billion yen (US$1.72 billion), -5.1%
Net loss: 607.0 million yen (US$6.2 billion) vs. net income of 2.35 billion yen