Executive search firm Korn/Ferry International Inc. (NYSE: KFY) reported fee revenue fell 43.2% year over year to $116.8 million in its fiscal first quarter ended July 31 amid the economic slowdown. North American fee revenue fell 41.2% to $55.3 million.

The number of executive search engagements opened fell by 29.6% year over year during the quarter and the average fee billed per engagement fell by 15.6%.

Still, Korn/Ferry reported signs of stabilization, and said fee revenue increased 3.7% compared to its fiscal fourth quarter excluding fee revenue from its acquisition of London-based executive search firm Whitehead Mann in May.

Korn/Ferry posted a net loss of $14.3 million for the quarter compared with net income of $15.9 million in the same period last year. The company reported restructuring charges of $18.2 million in the quarter as a result of its acquisition of Whitehead Mann. The charges included $8.4 million in severance costs and $9.8 million related to consolidating locations.

Korn/Ferry estimated fee revenue of $110 million to $120 million in its fiscal second quarter, representing a year-over-year decline of 36.6% to 41.9%.

Korn/Ferry International Inc. (NYSE: KFY)
For the fiscal first quarter ended July 31, 2009, compared with the same period in the previous fiscal year.
Fee revenue: $116.8 million, -43.2%
Net loss: $14.3 million vs. net income of $15.9 million