REVENUE, DIRECT COSTS AND GROSS MARGIN

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



	Three Months Ended
	September 30, 2013						September 30, 2012
	Temporary Contracting		Other		Total		Temporary Contracting		Other		Total
Revenue	$	126,321	$	37,266	$	163,587	$	142,418	$	45,455	$	187,873
Direct costs (1)	105,262		2,529		107,791		117,419		2,788		120,207
Gross margin	$	21,059	$	34,737	$	55,796	$	24,999	$	42,667	$	67,666

	Nine Months Ended
	September 30, 2013						September 30, 2012
	Temporary Contracting		Other		Total		Temporary Contracting		Other		Total
Revenue	$	383,157	$	117,467	$	500,624	$	442,484	$	150,817	$	593,301
Direct costs (1)	319,245		8,403		327,648		364,675		10,684		375,359
Gross margin	$	63,912	$	109,064	$	172,976	$	77,809	$	140,133	$	217,942

(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.