TeamStaff Inc. (NASD: TSTF) reported net income of $64,000 in its fiscal second quarter ended March 31 compared with a net loss of $1.0 million in the same period last year.

Second-quarter gross margin at the Somerset NJ-based healthcare and administrative staffing firm increased to 16.9% from 14.5%. The company cited better pricing and cost control efforts for the improvement.

Second-quarter revenue rose 1.5% to $17.3 million from $17.0 million in the second quarter of the previous year.

TeamStaff said it had $400,000 in legal fees in the quarter related to its cooperation with federal authorities in their investigation of activity at RS Staffing Services Inc. prior to TeamStaff's acquisition of the firm. However, TeamStaff CEO Rick Filippelli said the Department of Justice informed the company it has no plans to file charges against the company.

TeamStaff Inc. (NASD: TSTF)
For the second quarter ended March 31, 2008, compared with the same period in the previous year.
Revenue: $17.3 million, +1.5%
Net income: $64,000 versus a net loss of $1.0 million