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Heidrick Net Revenue Up 2%

26 April 2011

Heidrick & Struggles International Inc. (NASD: HSII) first-quarter net revenue rose 1.7 percent to $115.6 million in the first quarter ended March 31 from $113.7 million in the same period in the previous year.

“March confirmations were not as strong as we had projected, especially in the financial services practice, and this resulted in lower than anticipated revenue and operating margin in the first quarter,” said CEO L. Kevin Kelly. “However, we are encouraged by April confirmations, which will be better than March, and do not believe that our first-quarter results are indicative of what we believe is achievable in 2011.”

For the Americas, first-quarter net revenue rose 10.4 percent on a year-over-year basis to $64.5 million.

First-quarter net revenue from Europe fell 16.0 percent on a year-over-year basis to $27.6 million. Weakness in the financial services practice and prior quarters’ consultant turnover and resulting low productivity of new hires were noted as reasons for the decline in Europe. The Asia Pacific region posted first-quarter net revenue of $24.6 million, a 5.3 percent increase over the year-ago quarter.

The number of executive search confirmations in the first quarter fell 1.6 percent compared to the 2010 first quarter, but rose 5.4 percent compared to the 2010 fourth quarter. The average revenue per executive search was $101,200, up from $98,400 in the 2010 first quarter.

The company posted a net loss of $2.5 million for the quarter, compared with a net loss of $1.5 million in the year-ago quarter.

The company reported it expects second-quarter net revenue of between $126 million to $136 million — ranging from flat to a year-over-year increase of 7.9 percent

Heidrick & Struggles International Inc. (NASD: HSII)
For the first quarter ended March 31, 2011, compared with the same period in 2010.
Net revenue: $115.6 million, +1.7 percent
Net loss: $2.5 million vs. net loss of $1.5 million

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