Nasdaq-listed trading technology vendor NYFIX is forecasting a return to profitability in 2004 after posting widening losses for the year-ending December 2003.
Revenue for the fourth quarter of 2003 was $16.5 million, as compared to $17.3 million for the year-ago period. Q4 net losses hit $2.3 million against net income of $0.6 million in 2002.
The company says fourth quarter 2003 operating results were adversely impacted by a $1.3 million after tax charge as the vendor offered discounts for cash payments from customers affected by recent changes to market distribution and those exposed to pending regulatory changes.
For the year as a whole, revenue was up from $55.8 million in 2002 to $65.9 million. The net loss for the year was $4.4 million compared to a net loss of $3.2 million for 2002.
Despite its failure to turn a profit, the company believes its expansion into the buy-side and move into OTC markets through last year's acquisition of Renaissance Trading Technologies should improve its position for 2004. The company claims to have signed close to 100 buyside institutions for high-speed data-circuits to connect to their trading partners and services on the NYFIX Network.
Peter Kilbinger Hansen, chairman and CEO of NYFIX, comments: "Based on our business model of expanding into new customer segments, we anticipate revenue growth and profitability in 2004."