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Earnings: RHI

July 22 2009

Robert Half International Inc.'s (NYSE: RHI) second-quarter revenue fell 39% year-over-year (36% on a constant-currency basis) to $749.9 million driven by lower volume and pressure on bill rates. Second-quarter revenue fell in all the Menlo Park CA-based company's reported divisions with Accountemps, Robert Half's largest division, posting a 32.3% decline in revenue to $310.9 million.

The Robert Half Finance & Accounting division, which specializes in direct hire, posted the largest year-over-year decrease in revenue, dropping 66.0% to $43.5 million. In other divisions, OfficeTeam revenue fell 38.0%, Robert Half Technology revenues fell 33.2%, Robert Half Management Resources revenue fell 42.7% and Protiviti revenue fell 36.2%.

Robert Half's gross margin decreased to 35.3% from 42.2% in the second quarter of 2008. "Average bill rates were down 5.3% year-over-year and 1.6% sequentially,"ÂÂVbCrLf CFO Keith Waddell said in a conference call with analysts.

Waddell said that there is significantly more bill rate pressure at Management Resources and Protiviti, areas that bill out much more per hour than is the case with Accountemps and OfficeTeam. Waddell continued, "The mortgage refinancing demand that is out there carries with it lower margins and that is an area where there is a lot of demand at the moment.'"

Net income for the quarter dropped 93.4% on a year-over-year basis to $4.8 million from $72.3 million.

The company guided to third-quarter revenue between $700 million and $750 million, and earnings per share from $0.00 to $0.05.

Robert Half International Inc. (NYSE: RHI)
For the second quarter ended June 30, 2009, compared with the same period in the previous year. 
Revenue: $749.9 million, -38.8%
Net income: $4.8 million, -93.4%


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