REVENUE, DIRECT COSTS AND GROSS MARGIN

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



	Three Months Ended September 30, 2014
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	106,981	$	31,713	$	10,584	$	149,278
Direct costs (1)	90,594		736		2,261		93,591
Gross margin	$	16,387	$	30,977	$	8,323	$	55,687

	Three Months Ended September 30, 2013
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	102,428	$	28,535	$	8,324	$	139,287
Direct costs (1)	86,300		713		1,783		88,796
Gross margin	$	16,128	$	27,822	$	6,541	$	50,491

	Nine Months Ended September 30, 2014
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	312,591	$	96,134	$	35,790	$	444,515
Direct costs (1)	264,982		1,893		8,052		274,927
Gross margin	$	47,609	$	94,241	$	27,738	$	169,588

	Nine Months Ended September 30, 2013
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	306,646	$	85,575	$	30,352	$	422,573
Direct costs (1)	257,717		1,748		6,517		265,982
Gross margin	$	48,929	$	83,827	$	23,835	$	156,591

(1)

Direct costs in Temporary Contracting 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 Permanent Recruitment and Other category. 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 under the caption "Selling, general and administrative expenses" in the Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss).