The company announced its Q4 results and they are worse than analyst expectations, as I predicted earlier. A recent restatement made the loss a tad easier to bear, but still, it's not well at the big ES firms.

KFY Revenue fell 48% compared to the same quarter previous FYI. Ouch!  expect the summer won't bring much solace in the form of "improved" revenue and margins. Korn Flake made a loss for its fiscal year, and IMHO next quarter won't be much better either.

The firm warned in its 10K - despite a reserve of over 200 Mio USD in cash that:

The operating environment for the Company’s suite of services deteriorated rapidly in the second half of fiscal 2009. In response to the uncertain economic environment and labor markets, the Company has taken steps to align its cost structure with anticipated revenue levels, in an effort to retain positive cash flow. Continued adverse changes in the Company’s revenue, however, could require us to institute additional cost cutting measures, and to the extent our efforts are not quick or deep enough, we may incur negative cash flows, which if persist, would require us to obtain additional financing to meet our needs.

The 10K filing to the SEC can be found here, and provides much more juicy details for those willing to look at the financials and breakdown of fees and margin by region (EMEA is abysmal low in terms of margin).

Analysts, tea-leaf readers and occultists with a boon for the stockmarket should expect a quarter more of the same. The next earnings announcement of Heidrick & Struggling will bring much insight.