Resources Connection Inc. (NASD: RECN) today reported revenue fell 3.3% in its fiscal first quarter ended Aug. 27, and the company announced the retirement of President and CEO Tony Cherbak effective Friday due to health considerations.

Cherbak’s retirement came unexpectedly, according to the company. He notified the company on Tuesday of his retirement from the CEO position because of health issues, but he plans to remain on Resources Connection’s board.

The company appointed Kate Duchene to the role of interim CEO after activing its formal emergency succession plan. Duchene most recently held the role of chief legal officer, executive VP, human resources and secretary at Resources Connection — positions she has held since 2000. She has also assumed leadership of the company’s legal consulting business, RGP legal, and is a candidate for the CEO role on a permanent basis.

As far as earnings, Resources Connection reported fewer business opportunities in the financial services and energy sectors contributed to the decrease in revenue. In addition, approximately 0.9% of the decrease was caused because the Memorial Day holiday happened in the first quarter of this year but had fallen in the fourth quarter a year ago.

First-quarter US revenue fell 4.5%, and international revenue rose 1.9% year over year, or 3.1% constant currency.

Gross margin narrowed more than expected because of an unfavorable change in the bill rate/pay ratio, according to the company.

The Irvine, Calif.-based company ranks as the sixth-largest US provider of finance/accounting staffing. Its operating subsidiary is Resources Global Professionals.

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“I want to thank all of our investors and employees for all of your support,” Cherback said in a conference call with analysts. “While I can’t complete my journey with the company in the CEO capacity, my belief in our business model is as powerful as ever. I have the utmost faith in the team here — that the team here will work hard to deliver the potential that I see in the business.”

Share price and market cap

Shares in Resources Connection fell 11.49% in early afternoon trading today to $13.25 and the company had a market cap of $479.73 million, according to Yahoo.