Korn Ferry Posts 43 Percent Revenue Decline

September 10, 2009 – Korn/Ferry International/(NYSE:KFY) posted revenues of $116.8 million for the first quarter fiscal 2010, a decrease of 43.2 percent from revenues of $205.7 million a year ago. The Los-Angeles-based recruiter reported a loss per share of $0.05 (excluding an $18.2 million restructuring charge recorded in the period) compared to diluted earnings per share of $0.36 in Q1'09. Diluted loss per share was $0.33 including the restructuring charge in Q1'10. North America revenues were $55.3 million compared to revenues of $93.9 million a year ago. In EMEA revenues dropped from $51.6 million to $29.2 million and in Asia Pacific revenues fell from $21.4 million last year to $12.3 million. During the same period, the number of executive search engagements opened declined 29.6 percent and the average fee billed per engagement decreased by 15.6 percent (a decrease of 9.3 percent excluding the impact of exchange rates). The total number of consultants at July 31, 2009 was 501, a decrease of 36 from July 31, 2008 and an increase of 41 from April 30, 2009. The increase in the current quarter was driven by the addition of 52 consultants from closing of the previously announced acquisition of Whitehead Mann. Futurestep, the firm’s online recruiting business, also saw revenues plummet, by 45 percent. According to the company, the global economic crisis continues to have a significant impact on many of Korn/Ferry’s client's people initiatives. Demand for executive search, leadership and talent consulting services ‘declined precipitously throughout the world’ during the second half of fiscal 2009. Korn/Ferry said it anticipates a continued decline in new business due to summer seasonality as it enters the fall.