UPDATE 1-Heidrick & Struggles posts Q2 loss

Tue Jul 28, 2009 7:46am EDT

* Q2 loss $0.93/shr vs EPS $0.72 a year ago

* Total revenue falls 45 pct to $93 mln

* Sees weaker business in 2nd half

July 28 (Reuters) - Executive recruiter Heidrick & Struggles International Inc (HSII.O) reported a quarterly loss, hurt by lower executive search confirmations and a drop in average revenue per search, and said business will be weaker than expected in the second half of the year. For the second quarter, net loss was $15.8 million, or 93 cents a share, compared with net income of $12.7 million, or 72 cents per share, a year ago.

Excluding special items, the company posted a loss of 18 cents per share.

Total revenue fell 45 percent to $98.0 million. Revenue before reimbursements was $93.1 million.

The number of executive search confirmations fell 37.1 percent in the quarter. The average revenue per executive search was down 16 percent to $102,700.

Analysts on average had expected the company to post a loss of 12 cents a share, before special items, on revenue of $94.1 million, according to Reuters Estimates.

"Market conditions remain volatile and uncertain and this is impacting our ability to accurately forecast," Chief Executive L. Kevin Kelly said in a statement.

Shares of the company closed at $20.25 Monday on Nasdaq. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Gopakumar Warrier)

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