Second-quarter technical staffing revenue at Pomeroy IT Solutions Inc. (NASD: PMRY) fell 76.9% year over year to $7.3 million, but its staffing gross margin rose, the company reported today.

Pomeroy said it declined to renew a contract with a major staffing customer in June 2008 because it would have been unprofitable. Pomeroy expects a decline in technical staffing revenue of $80.0 million for the full year because of the loss of this business.

However, the Hebron KY-based information technology solutions and staffing firm said second-quarter gross margin in its technical staffing segment rose to 18.7% from 11.5% in the year-ago quarter.

Pomeroy's total net revenue fell 35% to $100.8 million compared with the same period last year. Net income fell 78.3% year over year to $324,000.

Pomeroy IT Solutions Inc. (NASD: PMRY)
For the second quarter ended July 5, 2009, compared with the same period in 2008.
Net revenue: $100.8 million, -35.0%
Net income: $324,000, -78.3%