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Overall, we are pleased with our record second quarter revenues at $274 million and earnings per share of $0.17, which represent year-over-year growth of 11.3% and 30.8%, respectively.We are pleased with the performance of our Tech Flex and HIM businesses and the continued strength in Search which performed well in both Technology and F&A. However, results for the quarter were mixed as we continue to experience headwinds, which negatively impacted a number of our businesses. Our Government business continues to be impacted by the challenging government contracting environment and the mortgage-related component of our F&A business continues to be negatively impacted by the slowdown in mortgage refinancing and foreclosure activity. Kforce Clinical Research also did not grow sequentially in the quarter as previously anticipated due to a slower than expected ramp at a major client project and some headcount reductions at 2 large customers. Management is focused on being flexible and constantly adapting for the changing landscape across each of our businesses, particularly those as experiencing challenges, to mitigate any negative external impacts and position the firm to take advantage of future opportunities. We have made progress, repositioning these business units and have confidence in our teams. Over time, we continue to believe that though all of our businesses rarely are performing at their peak at the same time, diversification in our revenue footprint provides the best platform for long-term success. We remain committed to our goal of surpassing prior peak earnings with a higher-quality revenue stream that is less dependent upon the Permanent Placement revenue. However, the challenge as mentioned, and the fact that margins particularly in our Tech Flex business are not expanding as quickly as in previous cycles suggests that peak earnings will not be achieved as quickly as originally anticipated. As a result of these unexpected challenges and the significant changes that have taken place in the economic outlook since February, 2011 revenue and earnings growth targets previously discussed will likely not be achieved and long-term revenue and earnings growth targets will need to be assessed in the context of this uncertain global fiscal landscape.
Since February 2011, the Q410, Q111 GDP have been revised downwards, 2011 GDP expectations have been significantly reduced, BLS employment data has been contacting and the macroeconomic environment remains uncertain due to the U.S. fiscal issues. However, despite the GDP backdrop, which historically correlates the declining temp staffing revenues, we have continued to see an environment where disproportionate amount of private sector hiring has been created through the temp sector. Our thinking remains that this uncertain environment, which has persisted for more than 2 years, continues to drive our clients' increasing desire for a more flexible workforce. This is particularly true in high scale niches. As college-educated unemployment was just 4.4% in June.Talent shortages are particularly acute in tech, which is project driven by nature and constitutes over half of our revenues. In fact, we believe that the decline in GDP expectation for the U.S. economy reinforce our client's desire to utilize flexible staffing, which allows them to quickly adjust in this constantly shifting economic environment and the significant uncertainties surrounding regulatory tax and healthcare reform. Many client meetings have confirmed that they are reluctant to go long human capital in this macro backdrop. We remain confident in our believe that there is a sustained secular shift toward a flexible staffing model and that temporary staffing penetration of the workforce may achieve historic highs in the United States. We also remain confident in our highly leverageable operating model and anticipate continued revenue and earnings growth both in the near term and over the long term. I will now turn the call over to Bill Sanders, Kforce's President, who we will come back, who will provide additional insight and operating trends and expectations and then Joe Liberatore, CFO, will provide remarks an overall financial performance. Bill? William Sanders Thank you, Dave. We thanks to all of you for your interest in Kforce. We at Kforce are committed to revenues and earnings growth. We will accomplish this by quickly adapting to the dynamic issues facing our clients. We will provide exceptional service to our clients, which will accelerate growth. We also expect to continue to improve profitability through the leverage that exist in a highly advanced operating platform and by further evolving the NRC, which allows us to profitably serve certain clients and niches that would not be possible under our traditional staffing model. Read the rest of this transcript for free on seekingalpha.com