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Korn/Ferry fee revenue falls 49%

June 10, 2009

Executive search firm Korn/Ferry International Inc. (NYSE: KFY) announced revenue fell 48.6% year-over-year in its fiscal fourth quarter ending April 30 as the number of executive search engagements opened fell 36.5% and the average fee per engagement slipped 25.2%.

North America fourth-quarter fee revenue fell 42% year-over-year to $56.9 million, the company reported in a conference call with analysts.

Fourth-quarter net loss was $19.5 million compared with net income of $15.7 million in the year-ago quarter. The Los Angeles-based company said it took a $25.1 million restructuring charge in the most-recent quarter that included $13.4 million in severance costs.

Full-year revenue fell 19.3% year-over-year to $638.2 million, and full-year net loss was $12.4 million compared with net income of $66.2 million in the previous year.

Korn/Ferry estimated first-quarter revenue of $90.0 million to $100.0 million, a year-over-year decline of 51.4% to 56.3%.

Korn/Ferry International Inc. (NYSE: KFY)
For the fiscal first quarter ended April 30, 2009, compared with the same period in the previous fiscal year.
Fee revenue: $107.0 million, -48.6%
Net loss: $19.5 million vs. net income of $15.7 million

For the full fiscal year ended April 30, 2009, compared with the previous year.
Fee revenue: $638.2 million, -19.3%
Net loss: $12.4 million vs. net income of $66.2 million