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View All NewsKorn Ferry revenue up 10%
Korn/Ferry International Inc. (NYSE: KFY) fee revenue rose 10.0 percent year over year, or 8.9 percent on a constant currency basis, to $251.2 million in its fiscal first quarter ended July 31.
The Los Angeles-based executive search firm reported the overall fee revenue increase was driven by fee revenue growth in all of its major markets: Industrial, life science/healthcare, technology, financial services and consumer.
Executive search revenue was strong in North America and EMEA, increasing 11.0 percent and 17.2 percent respectively. Total executive recruitment revenue rose 8.6 percent, despite declines in the South America and the Asia Pacific regions.
First-quarter net income rose to $14.5 million from $11.4 million in the same year-ago quarter. The first-quarter of fiscal year 2015 included a restructuring charge of $9.9 million, primarily comprised of separation benefits related to workforce reduction as it integrates its legacy business with recent acquisitions. The firm took a restructuring charge of $3.7 million in the same quarter of the prior fiscal year.
Quote
“Finding and recruiting talent, the right talent — that's any leader's, any CEO's, any board's critical priority, and that's evidenced by the growth in our flagship search business, which was about 9 percent,” CEO Gary Burnison said in a conference call with analysts, highlighting notable lifts of 11 percent in North America and 17 percent in Europe. “And the same holds true for clients that are desperately seeking and attracting knowledge workers, and that's demonstrated by Futurestep's continued growth.”
Fee revenue
| Q1 2015 (000s) | Q1 2014 (000s) | % growth | |
| Fee revenue | $251,188 | $228,437 | 10.0% |
Revenue by segment and geography
| Q1 2015 (000s) | Q1 2014 (000s) | % growth | |
| Executive recruitment | |||
| North America | $82,300 | $74,147 | 11.0% |
| Europe, the Middle East, Africa | $40,297 | $34,377 | 17.2% |
| Asia Pacific | $19,534 | $21,128 | -7.5% |
| South America | $6,284 | $7,003 | -10.3% |
| Total executive recruitment | $148,415 | $136,655 | 8.6% |
| Leadership & Talent Consulting | $63,548 | $60,062 | 5.8% |
| Futurestep* | $39,225 | $31,720 | 23.7% |
*Futurestep includes recruitment process outsourcing, project recruitment, search and consulting.
Net income
| Q1 2015 (000s) | Q1 2014 (000s) | % growth | |
| Net income | $14,533 | $11,417 | 27.3% |
Guidance
The company estimates fee revenue to range between $244 million and $254 million in the second quarter of fiscal year 2015.
Share price and market cap
Korn Ferry shares fell 0.98 percent in early afternoon trading to $30.33 and the company had a market cap of $1.51 billion, according to Yahoo!