Nyfix posts Q3 net loss

Nyfix (Nasdaq:NYFX), a trusted provider of innovative solutions that optimize trading efficiency, today reported results for third quarter and year-to-date 2009.

Revenues were $25.9 million for third quarter 2009, compared to $29.2 million in third quarter 2008. Selling, general and administrative expenses declined 27% during third quarter 2009, compared to third quarter 2008. EBITDA was $(2.9) million for third quarter 2009 reflecting the impact of strategic initiative costs of $(3.3) million and positive EBITDA from other operations of $0.4 million. EBITDA was $(0.8) million for third quarter 2008, reflecting the impact of integration costs of $(0.1) million, $(0.2) million in costs related to historical stock options matters and $(0.5) million of EBITDA from other operations. On a GAAP basis, the Company's net loss was $(6.1) million for third quarter 2009, compared to $(3.5) million for third quarter 2008.

Other developments that occurred during the third quarter 2009 included the following:

As previously announced, in August 2009 NYFIX entered into a definitive agreement to be acquired by NYSE Technologies, a wholly-owned subsidiary of NYSE Euronext, in an all cash deal for $144 million, or $1.675 per common share without interest. The transaction was approved by the Company's stockholders on November 3, 2009, and is expected to close during the fourth quarter, following the satisfaction of certain remaining customary conditions.

Billable order routing channels on the NYFIX Marketplace increased by 204, surpassing the significant milestone of 10,000 channels. At September 30, 2009, there were 10,114 billable order routing channels in service, up 6% from September 30, 2008.

Three Month Results

Financial highlights for third quarter 2009 include:

• EBITDA of $(2.9) million compared to $(0.8) million for third quarter 2008;
• an 11% decrease in total revenues to $25.9 million compared to $29.2 million for third quarter 2008;
• a 5% increase in FIX Division net revenues to $18.2 million compared to $17.4 million for third quarter 2008;
• a 336% decrease in Transaction Services Division net revenues to $7.1 million, including revenues of $0.9 million from Euro Millennium, compared to $11.0 million for third quarter 2008;
• a 25% decrease in OMS Division net revenues to $0.6 million compared to $0.8 million for third quarter 2008; and
• a net loss of $(6.1) million, or $(0.16) per share, compared to a net loss for third quarter 2008 of $(3.5) million, or $(0.09) per share, which exclude the impact of accumulated preferred dividends of $(0.4) million, or $(0.01) per share, and $(0.8) million, or $(0.02) per share, for third quarter 2009 and third quarter 2008, respectively.

The definitive agreement with NYSE Technologies referred to above was the result of a process that was launched by the Company in December 2008. In connection with this process, NYFIX incurred advisory fees, legal fees and accounting and tax fees, as well as meeting fees for a special committee of the NYFIX Board. These costs do not include any amounts that are contingent on the consummation of the proposed transaction.

Since second quarter 2007, NYFIX has incurred costs for Euro Millennium. Launched in March 2008 for matching U.K.-listed equities, Euro Millennium later expanded its scope to match cash equities in other European markets including Belgium, France, Germany and the Netherlands. The $(2.2) million loss for third quarter 2009 is net of the $0.9 million of revenue reported above within the totals for the Transaction Services Division.

The Company's equity incentive program was designed to award large upfront grants rather than smaller annual grants to maximize the incentive and retention impacts of the grants and to better align the interests of employees with stockholders.

Nine Month Results

Financial highlights for year-to-date 2009 include:

• EBITDA of $(3.1) million compared to $(6.1) million for year-to-date 2008;
  
• a 12% decrease in total revenues to $78.4 million compared to $89.2 million for year-to-date 2008;
  
• a 7% increase in FIX Division net revenues to $53.5 million compared to $50.1 million for year-to-date 2008;
  
• a 36% decrease in Transaction Services Division net revenues to $22.7 million, including revenue of $2.8 million from Euro Millennium, compared to $35.2 million for year-to-date 2008;
  
• a 44% decrease in OMS Division net revenues to $2.2 million compared to $3.9 million for year-to-date 2008; and
  
• a net loss of $(12.1) million, or $(0.31) per share, compared to a net loss for year-to-date 2008 of $(13.7) million, or $(0.36) per share, which exclude the impact of accumulated preferred dividends of $(0.9) million, or $(0.02) per share, and $(2.8) million, or $(0.08) per share, for year-to-date 2009 and year-to-date 2008, respectively.