8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 25, 2007

Robert Half International Inc.

(Exact name of registrant as specified in its charter)

Delaware	01-10427	94-1648752
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2884 Sand Hill Road, Menlo Park, CA	94025
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (650) 234-6000

NO CHANGE

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02    Results of Operations and Financial Condition.

On January 25, 2007, Robert Half International Inc. issued a press release reporting earnings for the fourth fiscal quarter of 2006. A copy of the press release is attached hereto as Exhibit 99.1.

The foregoing information in this Current Report on Form 8-K, including exhibit 99.1 attached hereto, is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such future filing.

Item 8.01    Other Events.

On August 9, 2005, Plaintiff Lizette Greene, on behalf of herself and a putative class of salaried “inside sales persons,” filed a complaint in United States District Court for the Northern District of California naming the Company and three of its wholly owned subsidiaries as Defendants. On December 22, 2006, the Plaintiff filed a motion for conditional certification of their federal claims in which they seek to represent a class of salaried employees who worked for the Company and certain of its subsidiaries in California within three years before the complaint was filed and seeking permission to mail class members a notice regarding their right to opt into the case as plaintiffs. At this stage of the litigation, it is not feasible to predict the outcome of or a range of loss, should a loss occur, from this proceeding, and accordingly, no amounts have been provided in the Company’s previously filed financial statements. The Company believes it has meritorious defenses to the allegations, and the Company intends to continue to vigorously defend against the litigation. Reference is made to Note G to the Notes to Condensed Consolidated Financial Statements (Unaudited) of the Company contained in Part I, Item 1 of the Company’s Form 10-Q for the quarter ended September 30, 2006 for a complete description of this case.

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits

Exhibit	Description
99.1	Robert Half International Inc. January 25, 2007, Press Release.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Robert Half International Inc.
Date: January 25, 2007	By:	/s/    M. Keith Waddell
	Name:	M. Keith Waddell
	Title:	Vice Chairman, President and Chief Financial Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact: M. Keith Waddell

Vice Chairman, President and

Chief Financial Officer

(650) 234-6000

ROBERT HALF INTERNATIONAL INC. REPORTS RECORD REVENUES AND EARNINGS FOR THE FOURTH QUARTER OF 2006

MENLO PARK, California, January 25, 2007 -- Robert Half International Inc. (NYSE symbol: RHI) today reported record revenues and earnings for the fourth quarter ended December 31, 2006.

For the quarter ended December 31, 2006, net income was $75.4 million or $.45 per share, on revenues of $1.1 billion. Net income for the prior year’s fourth quarter was $64.6 million or $.37 per share, on revenues of $884.8 million.

For the year ended December 31, 2006, net income was $283.2 million or $1.65 per share, on revenues of $4.0 billion. For the year ended December 31, 2005, net income was $237.9 million or $1.36 per share, on revenues of $3.3 billion.

“We were pleased with our financial results for the fourth quarter of 2006 and the full year,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International Inc. “We crossed the $4 billion mark in annual revenues for the first time in our company’s history.

“Fourth-quarter revenues were up 20 percent from the prior year, and income per share rose 21 percent from one year ago,” Messmer said. “All of our staffing divisions and Protiviti experienced double-digit revenue growth on a year-over-year basis during the fourth quarter.”

Robert Half International management will conduct a conference call today at 5 p.m. EST following the release. The dial-in number is 1-800-896-8445 (+1-785-830-1916 outside the United States) and the passcode is “Robert Half International.” A taped recording of this call will be available for replay beginning at approximately 8 p.m. EST today and ending at 8 p.m. EST on February 1. The dial-in number for the replay is 1-800-688-9459 (+1-402-220-1373 outside the United States). The conference call also will be archived in audio format on the company’s website at www.rhi.com.

Founded in 1948, Robert Half International Inc. is the world’s first and largest specialized staffing firm. RHI is a recognized leader in professional consulting and staffing services and is the parent company of Protiviti^® (www.protiviti.com), a leading independent internal audit and risk consulting firm. The company’s specialized staffing divisions include Accountemps^®, Robert Half^® Finance & Accounting and Robert Half^® Management Resources, for temporary, full-time and project professionals, respectively, in the fields of accounting and finance; OfficeTeam^®, for highly skilled temporary administrative support personnel; Robert Half^® Technology, for information technology professionals; Robert Half^® Legal, for legal personnel; and The Creative Group^®, for advertising, marketing and web design professionals. The company has staffing and consulting operations in more than 400 locations worldwide.

Certain information contained in this press release may be deemed forward-looking statements regarding events and financial trends that may affect the company’s future operating results or financial positions. These statements may be identified by words such as “estimate”, “forecast”, “project”, “plan”, “intend”, “believe”, “expect”, “anticipate”, or variations or negatives thereof, or by similar or comparable words or phrases. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements.

(more)

These risks and uncertainties include, but are not limited to, the following: changes in levels of unemployment and other economic conditions in the United States or foreign countries where the company does business, or in particular regions or industries; reduction in the supply of candidates for temporary employment or the company’s ability to attract candidates; the entry of new competitors into the marketplace or expansion by existing competitors; the ability of the company to maintain existing client relationships and attract new clients in the context of changing economic or competitive conditions; the impact of competitive pressures, including any change in the demand for the company’s services, on the company’s ability to maintain its margins; the possibility of the company incurring liability for its activities, including the activities of its temporary employees, or for events impacting its temporary employees on clients’ premises; the possibility that adverse publicity could impact the company’s ability to attract and retain clients and candidates; the success of the company in attracting, training, and retaining qualified management personnel and other staff employees; whether governments will impose additional regulations or licensing requirements on personnel services businesses in particular or on employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; and litigation relating to prior or current transactions or activities, including litigation that may be disclosed from time to time in the company’s SEC filings.

Additionally, with respect to Protiviti, other risks and uncertainties include the fact that future success will depend on its ability to retain employees and attract clients; there can be no assurance that there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; failure to produce projected revenues could adversely affect financial results; and there is the possibility of involvement in litigation relating to prior or current transactions or activities.

Because long-term contracts are not a significant part of the company’s business, future results cannot be reliably predicted by considering past trends or extrapolating past results. The company undertakes no obligation to update information contained in this release.

A copy of this press release is available at www.rhi.com.

ATTACHED:	Summary of Operations
	Supplemental Financial Information

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)

	Quarter Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
	(Unaudited)						(Unaudited)
Net service revenues	$	1,060,234		$	884,765		$	4,013,546		$	3,338,439
Direct costs of services		609,184			517,841			2,319,293			1,965,390
Gross margin		451,050			366,924			1,694,253			1,373,049
Selling, general and administrative expenses		331,565			263,657			1,243,952			991,488
Amortization of intangible assets		246			94			851			335
Interest income		(4,252	)		(3,800	)		(16,752	)		(10,948	)
Income before income taxes		123,491			106,973			466,202			392,174
Provision for income taxes		48,118			42,364			183,024			154,304
Net income	$	75,373		$	64,609		$	283,178		$	237,870
Diluted net income per share	$	.45		$	.37		$	1.65		$	1.36
Shares:
Basic		163,695			166,965			166,003			167,664
Diluted		168,846			174,582			171,712			174,382

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

	Quarter Ended December 31,				Year Ended December 31,
	2006		2005		2006		2005
	(Unaudited)				(Unaudited)
REVENUES:
Accountemps	$	389,265	$	324,387	$	1,485,105	$	1,230,247
OfficeTeam		201,410		179,103		776,425		679,698
Robert Half Technology		94,409		81,534		358,480		302,225
Robert Half Management Resources		136,294		111,062		513,876		428,041
Robert Half Finance & Accounting		86,751		60,551		336,250		219,234
Protiviti		152,105		128,128		543,410		478,994
Total	$	1,060,234	$	884,765	$	4,013,546	$	3,338,439
GROSS MARGIN:
Temporary and consultant staffing	$	305,325	$	257,923	$	1,158,887	$	963,333
Permanent placement staffing		86,751		60,551		336,250		219,234
Risk consulting and internal audit services		58,974		48,450		199,116		190,482
Total	$	451,050	$	366,924	$	1,694,253	$	1,373,049
OPERATING INCOME:
Temporary and consultant staffing	$	82,465	$	72,635	$	314,754	$	250,161
Permanent placement staffing		16,717		10,303		74,757		44,602
Risk consulting and internal audit services		20,303		20,329		60,790		86,798
Total	$	119,485	$	103,267	$	450,301	$	381,561
SELECTED CASH FLOW INFORMATION:
Amortization of intangible assets	$	246	$	94	$	851	$	335
Stock options expense	$	3,780	$	—	$	17,628	$	—
Depreciation expense	$	15,264	$	13,555	$	60,234	$	50,994
Capital expenditures	$	16,309	$	20,745	$	80,446	$	61,751
Open market repurchases of common stock (shares)		819		914		7,892		7,645

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

	December 31,
	2006		2005
	(Unaudited)
SELECTED BALANCE SHEET INFORMATION:
Cash and cash equivalents	$	447,479	$	458,358
Accounts receivable, less allowances	$	531,824	$	451,260
Total assets	$	1,459,021	$	1,318,686
Current liabilities	$	402,740	$	336,701
Notes payable and other indebtedness, less current portion	$	3,831	$	2,698
Total stockholders’ equity	$	1,042,671	$	970,873

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