REVENUE, DIRECT COSTS AND GROSS MARGIN

The Company’s revenue, direct costs and gross margin were as follows:



	For The Three Months Ended						For The Three Months Ended
	June 30, 2012						June 30, 2011
	Temporary Contracting		Other		Total		Temporary Contracting		Other		Total
Revenue	$	149,629	$	55,209	$	204,838	$	180,806	$	66,572	$	247,378
Direct costs (1)	123,186		4,584		127,770		147,669		4,242		151,911
Gross margin	$	26,443	$	50,625	$	77,068	$	33,137	$	62,330	$	95,467



	For The Six Months Ended						For The Six Months Ended
	June 30, 2012						June 30, 2011
	Temporary Contracting		Other		Total		Temporary Contracting		Other		Total
Revenue	$	300,066	$	105,362	$	405,428	$	343,867	$	122,050	$	465,917
Direct costs (1)	247,256		7,896		255,152		281,825		7,427		289,252
Gross margin	$	52,810	$	97,466	$	150,276	$	62,042	$	114,623	$	176,665

(1)

Direct costs include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Other than reimbursed out-of-pocket expenses, there are no other direct costs associated with the Other category, which includes the search, permanent recruitment and other human resource solutions’ revenue. Gross margin represents revenue less direct costs. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin. The salaries, commissions, payroll taxes and employee benefits related to recruitment professionals are included in selling, general and administrative expenses.