Solutions revenue in the first quarter of 2012 was $41.2 million, an increase of $7.5 million or 22% compared with the first quarter of 2011. As a percentage of total revenue, Solutions revenue was 40% compared with 35% a year ago. The improvement in our business mix was mainly driven by revenue from more profitable healthcare projects. Staffing revenue in the quarter remained flat at $62.2 million.

First quarter revenue from IBM, our largest customer, was $28.4 million compared with $28.7 million in the first quarter 2011. As a percent of total revenue, it decreased to 27.4% in the 2012 first quarter compared with 29.9% of total revenue in the 2011 first quarter.

Revenue from our European operations was $17.2 million, a 1% increase from the $17.1 million recorded in last year’s first quarter. The effect of foreign currency fluctuations during the first quarter of 2012 decreased consolidated revenue by approximately $728,000 or 0.7%. On a local currency basis, our European revenue increased by 4.9% compared with the first quarter 2011.

Direct costs as a percentage of revenue were 78.9% in the first quarter compared with 79.4% in the first quarter of 2011. SG&A expenses as a percent of revenue decreased slightly to 15.7% from 15.8% in the first quarter 2011.

First quarter operating income grew to $5.6 million, an increase of $1 million or 22% year-over-year reflecting the favorable effect of operating leverage and our higher margin Solutions work. Compared with the trailing fourth quarter of 2011, first quarter operating income increased $141,000 or 2.6%.

Operating margin in the first quarter increased to 5.4% of revenue, a 60 basis point improvement from last year’s 4.8% and the same as the 5.4% operating margin in fourth quarter 2011. The year-over-year increase was primarily due to the increase in the Solutions business in our sales mix and the additional operating leverage.

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