The Calabasas CA-based professional staffing firm reported second-quarter revenue in its IT and engineering segment rose 26.8% on a year-over-year basis to $41.2 million.

Second-quarter revenue in On Assignment's life sciences segment rose 12.1% to $25.5 million. Allied healthcare revenue rose 6.1% in the second quarter to $9.8 million.

While the company reported revenue growth in some segments, its nurse travel and physician staffing segments posted declines. Second-quarter nurse travel revenue fell 32.1% to $9.5 million on a year-over-year basis with $2.1 million of that revenue coming from supporting a customer that was experiencing a labor disruption. Physician staffing revenue fell 21.0% to $18.4 million in the second quarter.

Second-quarter gross margin improved 100 basis points to 33.8% from 32.8% in the year-ago quarter.

Net income rose to $940,000 in the second quarter, up 64.9% from $570,000 in the same period last year.

On Assignment forecast third-quarter revenue of $111 million to $115 million, up 13.2% to 17.3% on a year-over-year basis.

The third-quarter forecast includes estimated year-over-year revenue growth of 30% in IT and engineering and 20% in life sciences. Revenue is estimated to fall in the single digits in healthcare and physician staffing.

In addition, the third-quarter estimates include $2.2 million more in revenue from supporting a customer with a labor disruption and $1.3 million in revenue from On Assignment's acquisition this month of Sharpstream Life Sciences Ltd., a London-based retained search firm focused on the life sciences sector.

On Assignment Inc. (NASD: ASGN)
For the second quarter ended June 30, 2010, compared with the same period in 2009.
Revenue: $104.5 million, +2.6%
Net income: $940,000, +64.9%