You will find more information about the assumptions and material factors that were applied, that could cause actual results to differ materially from those we discuss in this conference call and the management’s discussion and analysis included in our 2009 financial review.
I would also like to advise you that this conference call is being broadcast live over the internet, and it will be archived for future reference at www.stantec.com under the Investors Section.
Therefore, we ask any members of the media that are joining us today in a listen-only mode and who wish to quote anyone other than Dan or me to please request permission to do so from the individual concerned.
This morning, we released the results of Stantec’s operations for the second quarter of 2010. I’m pleased to report that we are on target with our expectations for 2010. We achieved growth in net revenue on a sequential basis and response to the increased activity in some of our markets. We were able to increase our overall employee numbers while continuing to manage our business effectively.
Dan, will now provide a review of our second quarter financial results. Dan.
Thank you, Bob, and good afternoon everyone. As Bob just indicated, in the second quarter of 2010, we once again achieved solid results. Our gross revenue in the second quarter was consistent with that achieved in Q1 ’10. Compared to Q2 ’09, our gross revenue was $371.1 million, down $17 million, of this decrease $18.4 million was as a result of the change in foreign exchange during the quarter.
Our net revenue in the second quarter was up 2.4% from Q1 ‘10. Compared to Q2 ’09, our net revenue was $303.8 million, down $14.3 million. Again, this decline reflected an impact, the impact of foreign exchange, as well as staff reductions throughout 2009. Our gross margin as a percentage of net revenue was 55.7% in the second quarter and continued to fall within our target range of 54.5% to 56.5%.