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Executive search firm Korn/Ferry International Inc. (NYSE: KFY) said fee revenue fell 3.4% year-over-year in its fiscal second quarter ended Oct. 31 to $189.3 million.
Fee revenue declined across all geographic areas, including a 3.3% decrease in North America to $91.7 million. However, the Los Angeles-based company's Futurestep recruitment process outsourcing division posted an 8.7% increase in revenue to $29.1 million.
Korn/Ferry said the global economic crisis resulted in fewer openings of new executive search engagements, and the average fee billed per executive search fell by 4.5% from the same period a year ago. Foreign exchange rates also had an unfavorable impact of $1.3 million.
The company said third-quarter fee revenue will be between $140 million and $160 million assuming constant foreign currency exchange rates. "However, due to the current extraordinary economic conditions, the ability to predict new business is more difficult than normal," the company said.
Korn/Ferry International Inc. (NYSE: KFY)
For the fiscal second quarter ended Oct. 31, 2008, compared with the same period in the previous fiscal year.
Revenue: $189.3 million, -3.4%
Net income: $13.6 million, -20.7%