Electronic brokerage Instinet has posted a 33% drop in net income as revenues dipped seven per cent in the second quarter.
The company, which is being bought by Nasdaq and a consortioum of buy-out partners, reported second-quarter net income of $8 million, compared with $12 million a year earlier. Total revenues fell 7 percent to $259 million.
The firm's institutional brokerage business reported a pre-tax loss from continuing operations of $22 million for the second quarter, against a $5 million profit in the first quarter.
The Inet electronic-brokerage turned in a second-quarter pretax profit of $10 million, in line with the first quarter, although revenue fell five per cent sequentially due to lower equity volumes and Nasdaq-listed market share.
The second quarter 2005 results included $25 million in net investment gains, $16 million in severance charges, $5 million in advisory fees and $1 million in asset write-offs.
Chief executive Edward Nicoll described the business environment as "challenging and difficult".
The proposed take-over by Nasdaq and subsequent split of the electronic agency business from the institutional brokerage has been held up by an extended investigation by the US Department of Justice.
Nicoll says: "We continue to work closely with the appropriate regulatory authorities to meet all requests and provide requested information."