Second-quarter service revenue at Staffmark rose 1.7 percent, according to a filing today with the U.S. Securities and Exchange Commission by its parent company, Compass Diversified Holdings (NYSE: CODI). Staffmark had revenue of $255.6 million in the second quarter ended June 30, compared with $251.4 million in the year-ago quarter.

The company said in the filing the March earthquakes in Japan disrupted the supply chain with companies located in the United States, flattening demand for temporary labor (primarily industrial and clerical), which in turn suppressed revenue growth. Staffmark expects to ramp up services with these customers in the third quarter as they restore their production.

Staffmark’s second-quarter gross margin slipped to 14.1 percent from 14.4 percent in the year-ago quarter.

Staffmark is part of Compass Diversified Holdings. Staffmark filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering in April. Compass Diversified currently owns approximately 68.3 percent of Staffmark’s common stock, on a fully diluted basis, according to today’s filing.