US electronic trading technology outfit Nyfix is reporting an increase in revenues but widening losses for the third quarter ended September 2003.
Revenue for the quarter was $16.4 million, a 7% increase from $15.4 million for the comparable period last year and a 4% sequential increase over Q2 2003. The company's net loss for the third quarter of 2003 was $1.1 million, compared to a loss of $0.9 million in the year ago period and $1.1 million in the previous quarter.
Revenue for the nine months ended September stands at $49.4 million, a 28% increase from revenue of $38.5 million for the previous year. Net losses of $2 million are also under 2002's three-quarter equivalent of $3.7 million.
Management says that while revenue increased slightly, the main progress for the third quarter was a strong increase in signed buy-side institutional contracts. Since the start of its buy-side initiative last year, the company has signed 66 buy-side institutions for Nyfix network and market connectivity services.
Peter Kilbinger Hansen, CEO of Nyfix comments: "We are aggressively looking to take advantage of opportunities in a market segment considerably larger than our traditional market."
He says the combination of the Nyfix listed and Renaissance OTC product suites has reinvigorated the company's ability to defend existing revenues from the traditional brokerage segement.
In addition, Nyfix Millennium has committed to making fundamental changes to both its technology and its business model to overcome illiquidity by offering interaction with other execution centres.
Robert Gasser, CEO of Nyfix Millennium, says: "We have committed to release all Millennium changes and routing hook-ups to other liquidity pools no later than the end of January 2004 and are on track to meet this timetable. The client support we enjoy for these initiatives could potentially mean a significant increase in Millennium LLC revenues."
The company expects revenue for the fourth quarter 2003 to be in the range of $16.5 million to $17.5 million. This compares to $17.3 million for the fourth quarter of 2002 and $16.4 million for the third quarter of 2003.