Korn/Ferry International Inc. (NYSE: KFY) reported fee revenue fell 26.0% on a year-over-year basis to $140.1 million in its fiscal second quarter ended Oct. 31.

The Los Angeles-based executive search firm, however, said fee revenue increased 20.0% compared with the first fiscal quarter.

The number of engagements opened fell 13.9% on a year-over-year basis in the second quarter, and the average fee billed per engagement fell by 1.2%, according to the company.

Korn/Ferry's second-quarter North American search revenue fell 25.8% from the year-ago quarter to $68.2 million.

Second-quarter fee revenue fell 42.1% to $16.9 million at the company's Futurestep division, which provides mid-level recruitment and recruitment process outsourcing services.

Korn/Ferry reported net income of $2.7 million, a decline of 79.8% from net income of $13.6 million in the second quarter of 2009. The company reported restructuring charges of $7.6 million for its European, Middle Eastern and African operations, but said the charges were partially offset by $4.8 million in recoveries from previous restructuring charges.

Korn/Ferry estimated third-quarter revenue of between $130 million to $145 million, which ranges from a decrease of 4.6% on a year-over-year basis to an increase of 6.5%.

Korn/Ferry International Inc. (NYSE: KFY)
For the fiscal second quarter ended Oct. 31, 2009, compared with the same period in the previous fiscal year.
Fee revenue: $140.1 million, -26.0%
Net income: $2.7 million, -79.8%