First-quarter net revenue at Heidrick & Struggles International Inc. (NASD: HSII) rose 27.5% on a year-over-year basis to $113.7 million. The Chicago-based executive search firm said it got a boost from its financial services business.

"The financial services practice was the first to show a significant decline beginning in 2007 and has been the strongest driver of growth coming out of the recession," CEO L. Kevin Kelly said in a press release.

Average revenue per executive search was $98,400 in the first quarter compared with $98,900 in the year-ago quarter. The number of executive search confirmations rose 26.9% in the first quarter compared to the first quarter of 2009.

Heidrick's Americas net revenue rose 24.0% to $57.5 million. The Americas segment includes the U.S., Canada, Mexico and Latin America.

The company posted a first-quarter net loss of $1.8 million compared with a net loss of $18.9 million in the first quarter of last year.

Heidrick said the first quarter of 2010 included $4.7 million in charges related to moving to a smaller office in London and a judgment against the company in a court case involving a former European employee. The first quarter of 2009 included $13.4 million in restructuring charges that primarily involved severance payments.

"Operating expenses in the quarter were higher than we had forecasted," Kelly said. "In addition to the $4.7 million in other charges noted above, margins were negatively impacted by certain other unanticipated costs which we do not expect to recur."

The company posted a loss per diluted share of 10 cents. Analysts had expected earnings of 15 cents per share, according to Yahoo.com.

The company estimated second-quarter revenue of between $117 million and $123 million -- a year-over-year increase of between 26% and 32%.

Heidrick estimated full-year 2010 revenue of between $440 million and $480 million, year-over-year growth of between 11% and 21%. 

Heidrick & Struggles International Inc. (NASD: HSII)
For the first quarter ended March 31, 2010, compared with the same period in 2009.
Net revenue: $113.7 million, +27.5%
Net loss: $1.8 million vs. net loss of $18.9 million