Canadian investment technology vendor Financial Models is reporting a 9.6% cut in second quarter revenues to $17.5 million from $19.4 million a year earlier, as clients continue to reduce and defer spending on software and services.
Second quarter Ebitda at FMC slipped to $1.4 million from $1.8 million in Q2, 2002, while net earnings increased to $0.5 million, or $0.04 per share, from net earnings of $0.2 million, or $0.02 per share.
Year-to-date revenue is down 8.6% to $35.1 million from $38.4 million. Year-to-date Ebitda decreased to $2.7 million from $3.2 million. Year-to-date net earnings decreased to $0.2 million, or $0.02 per share, from $0.3 million, or $0.03 per share.
Stamos Katotakis, president and chief executive officer of FMC, comments: "Our second quarter professional fees remained weak as a result of reduced implementation activity. Even though our licence revenue recovered somewhat from the prior quarter, we remain guarded in our outlook for the next six months."
Total revenue for the third quarter of 2004 is expected at levels similar or slightly lower than the second quarter due to conversion of foreign revenues to Canadian dollars at potentially lower exchange rates and due to certain reductions in application services revenue resulting from consolidation of certain clients.