Heidrick & Struggles Posts Global Revenue Declines; Financial Services Sector Biggest Drag on Business

April 25, 2012 – Chicago-based executive search firm Heidrick & Struggles International/(NASDAQ:HSII) has posted consolidated net revenue of $106.5 million in the first quarter, down 7.9 percent from $115.6 million a year ago. Net revenue in the Americas declined 7.3 percent to $58.9 million year over year driven by declines in the financial services and global technology & services practices. Europe revenue fell less than two percent to $27.1 million while Asia Pacific revenue dropped 16 percent to $20.6 million. Net income for the quarter totaled $679,000, or four cents per share, compared with a loss of $4.7 million, or 26 cents per share, last year. "We demonstrated considerable progress in managing expenses, which resulted in improvements in operating income and operating margin in a very tough revenue climate," said L. Kevin Kelly, CEO. "Net revenue reflected weak confirmation trends in the 2011 fourth quarter, which continued to some extent into the first quarter. And given the mixed headlines from financial services companies globally, it wasn't surprising that this practice showed the largest decline in revenue, with Asia Pacific impacted most on a percentage basis."

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