Business Remains Weak at Heidrick & Struggles

April 27, 2011 – Chicago-based executive search firm Heidrick & Struggles International/(NASDAQ:HSII) has posted net revenue of $115.6 million for the first quarter ended March 31, 2011, an increase of 1.7 percent from $113.7 million a year ago. Year over year, net revenue increased 10.4 percent in the Americas, declined 16 percent in Europe, and increased 5.3 percent in Asia Pacific. Net revenue from leadership consulting services increased 12.4 percent to $8.4 million and represented 7.3 percent of consolidated net revenue in the quarter. Heidrick posted a net loss of $2.5 million, or $0.14 per share, compared to losses of $1.5 million, or $0.09 per share, a year earlier. The number of executive search confirmations in the quarter decreased 1.6 percent compared to the 2010 first quarter, but increased 5.4 percent compared to the 2010 fourth quarter. "March confirmations were not as strong as we had projected, especially in the financial services practice, and this resulted in lower than anticipated revenue and operating margin in the first quarter,” said L. Kevin Kelly, CEO.