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TeamStaff revenue falls 21%

May 15, 2009

TeamStaff Inc. (NASD: TSTF), a Somerset NJ-based healthcare and administrative staffing firm, reported revenue fell 20.7% year-over-year to $13.7 million in its fiscal second quarter ended March 31. Excluding non-recurring retroactive billings in the year-ago quarter, revenue fell 14.5%.

President and CEO Rick Filippelli said the current operating environment remained difficult for its healthcare staffing operations with weak hospital admissions, a contraction in hospital spending and permanent hospital staff working more hours and reducing demand for temporary staffing.

Filippelli said the sales cycle for its government subsidiary has lengthened, but the company is now seeing economic stimulus funds being released by government agencies. It said it was awarded a $400,000 Department of Defense contract in March.

TeamStaff's second-quarter gross margin narrowed to 16.1% from 16.9%.

The company posted a net loss of $559,000 compared with net income of $64,000 in the same period in the previous year.

TeamStaff Inc. (NASD: TSTF)
For the fiscal second quarter ended March 31, 2009, compared with the same period in the previous fiscal year.
Revenue: $13.7 million, -20.7%
Net loss: $559,000 vs. net income of $64,000