Korn Flakes Q1 ended on 31 July. The facts:

- Year to year revenue dropped 39%, to 123.3 Mio USD from 217.5 Mio USD, compared to Q4 FY2009 revenue grew net 4% (excluding results from an acquisition earlier this year).

- KFY posted a net loss of 14.3 Mio USD, compared to net profit of 15 Mio USD a year ago, and a to loss of 17.2 Mio USD  last quarter. This includes restructuring costs. Adjusted, the net loss from operations is 2.3 Mio USD.

- The KFY CEO sees the firm entering an overal period of "stabilization" whereby restructuring lowered expenses, and will bring more diversified revenue streams. One positive evolution amongst all the grim news is the fact total fee revenue went up slightly.

My take is that the tremendeous brand equity of Korn Ferry helps the firm taking in high value assignments, compensating for the significant shrinkage in middle management positions. The bloodletting is over, and the firm can now slowly start to rebuild.