REVENUE, DIRECT COSTS AND GROSS MARGIN

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



	Three Months Ended
	June 30, 2013						June 30, 2012
	Temporary Contracting (2)		Other (2)		Total		Temporary Contracting		Other		Total
Revenue	$	127,995	$	43,365	$	171,360	$	149,629	$	55,209	$	204,838
Direct costs (1)	107,617		3,239		110,856		123,186		4,584		127,770
Gross margin	$	20,378	$	40,126	$	60,504	$	26,443	$	50,625	$	77,068

	Six Months Ended
	June 30, 2013						June 30, 2012
	Temporary Contracting		Other		Total		Temporary Contracting		Other		Total
Revenue	$	256,836	$	80,201	$	337,037	$	300,066	$	105,362	$	405,428
Direct costs (1)	213,983		5,874		219,857		247,256		7,896		255,152
Gross margin	$	42,853	$	74,327	$	117,180	$	52,810	$	97,466	$	150,276

(1)

Direct costs include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, rent 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.


(2)	The Company reclassified $782 of revenue within the Company's Australia operations related to permanent recruitment services from temporary contracting revenue to other revenue related to the three-month period ended March 31, 2013. to be consistent with the underlying nature of services being performed.