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Revenue rose at Korn Ferry (NYSE: KFY) in its fiscal second quarter ended Oct. 31, coming in at the high end of guidance as the retained search firm ramped up its leadership and talent consulting offerings.
Fee revenue for the second quarter rose 21 percent to $238.0 million in its fiscal second quarter with a boost by recent acquisitions. Fee revenue rose 8 percent on a constant currency basis and excluding acquisitions.
Korn Ferry divides its business into executive recruitment, leadership & talent consulting, and Futurestep.
Executive recruitment fee revenue rose by 10 percent to $140.0 million. Fee revenue rose across regions with the largest increases in North America and Asia, according to the company.
Korn Ferry’s leadership & talent consulting business includes management assessment and executive coaching and development services. Second-quarter revenue rose 72 percent year over year to $66.0 million in the division. However, the company said revenue in this division would be essentially flat on a constant currency basis without the acquisitions of PDI Ninth House and Global Novations LC. Korn Ferry acquired PDI Ninth House, a provider of leadership development and assessment solutions, in December 2012. The company acquired Global Novations LLC, a provider of diversity and inclusion and leadership development solutions, in September 2012.
Korn Ferry’s Futurestep division includes recruitment services for non-executive professionals and recruitment process outsourcing. Second-quarter Futurestep revenue rose 6 percent year over year to $31.9 million.
Net income rose to $18.8 million from $1.2 million in year-ago quarter. The second quarter of the previous year included restructuring charges of $15.5 million.
Los Angeles-based Korn Ferry recently launched a rebranding effort.
Korn Ferry (NYSE: KFY)
For the fiscal second quarter ended Oct. 31, 2013, compared with the same period a year ago.
Fee revenue: $238.0 million, +21 percent
Net income: $18.8 million vs. $1.2 million