The Hudson Highland Group Inc. (NASD: HHGP) reported first-quarter revenue fell 43.9% year-over-year to $165.0 million, but said the quarter marked a low point.

"Our operating results continued to be significantly impacted by the deep global recession during the first quarter," said Chairman and CEO Jon Chait. "While we expect the environment to remain challenging, we believe that the first quarter was a financial performance bottom for Hudson."

The company reported $5.9 million in restructuring charges in the first quarter for severance and lease terminations, and announced it plans another $3 million to $6 million of restructuring charges in the second quarter.

First-quarter gross margin narrowed to 37.8% from 42.2% in the year-ago quarter. Permanent recruitment fees were down 57% in the quarter. The company said 43% of its first-quarter gross margin was attributable to permanent recruitment, down from 52% in the year-ago quarter.

Hudson posted a first-quarter net loss of $5.6 million compared with net income of $1.4 million in the first quarter of 2008.

In a conference call with analysts, CFO Mary Jane Raymond said Hudson closed its operations in Italy and Japan.

Hudson Highland Group Inc. (NASD: HHGP)
For the first quarter ended March 31, 2009, compared with the same period in 2008.
Revenue: $165.0 million, -43.9%
Net loss: $5.6 million vs. net income of $1.4 million