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International - On Assignment's revenues up strongly in Q2 2011

10 August 2011

Revenues were up +38% from $104.5 million in Q2 2010 to $143.7 million in Q2 2011 at On Assignment, Inc. (NASDAQ:ASGN), the US-based international provider of highly-skilled professionals with offices in the UK, the Netherlands, Ireland, Belgium, Canada and China.

Revenues generated in the United States were up from $98.2 million in Q2 2010 to $124 million in Q2 2011. Revenues generated outside the United States were up strongly from $6.2 million in Q2 2010 to $19.7 million in Q2 2011.

Total gross profit was up +38% from $35.3 million in Q2 2010 to $48.8 million in Q2 2011. 

Total operating income more than trebled from $3.3 million in Q2 2010 to $10.8 million in Q2 2011. 

Revenues generated from Life Sciences were up +55% from $25.5 million in Q2 2010 to $39.6 million in Q2 2011. Operating income generated in the segment was up from $763,000 in Q2 2010 to $2.9 million in Q2 2011.

Revenues generated from Healthcare were up +12% from $19.3 million in Q2 2010 to $21.7 million in Q2 2011. Operating income generated in the segment was up from a loss of -$1.7 million in Q2 2010 to a reduced loss of -$1.2 million in Q2 2011.

Revenues generated from Physicians were down -8% from $18.4 million in Q2 2010 to $17 million in Q2 2011. Operating income generated in the segment was down from $1.5 in Q2 2010 to $1.1 million in Q2 2011.

Revenues generated from IT & Engineering were up +58% from $41.2 million in Q2 2010 to $65.3 million in Q2 2011. Operating income generated in the segment was up from $2.7 million in Q2 2010 to $8 million in Q2 2011.

The group says in a statement "in the second quarter consolidated revenues and earnings per share grew year-on-year and sequentially over the first quarter. We saw demand strengthen in all of the segments we serve."

"In February, we completed the acquisition of Valesta, a privately-owned provider of specialise staffing in the area of clinical research with operation in Europe. The purchase price included $16.8 million in cash paid at closing, plus potential for future consideration of up to 5 million Euro ($7.3 million at current exchange rate) based upon the operating results of the related business through 31 December 2013. The primary reasons for the Valesta acquisition were to expand our Life Sciences business operations and to leverage the company's existing SG&A infrastructure."

"On 31 July 2011, we completed the acquisition of HealthCare Partners, a privately owned provider of physician staffing, headquartered in Atlanta, Georgia. Going forward our strategy is to continue growing our business both organically and through strategic acquisitions."

At the end of play in New York yesterday On Assignment’s shares were up by +2.6% to US$ 8.80

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