ITC sell-off dents IPC's profits

ITC sell-off dents IPC's profits

Trading room communications vendor IPC is reporting an increase in third quarter revenues and is in the black from continuing operations, but has recorded a net loss of $1.3 million following the disposal of its Information Transport Systems (ITS) cabling division for $0.6 million in July.

IPC's revenue in Q3 2004 increased 36% to $60.3 million compared to last year's $44.5 million.

Revenue was comprised of $47.1 million from its Trading Systems operations - up from $40.5 million in Q3 last year - and $13.2 million from its Network Services operations, which reported $4.0 million a year ago.

Lance Boxer, CEO says bookings at the Trading Systems unit are up significantly and the company also realised strong organic revenue growth in the Network Services business.

"The business environment has improved considerably for our customers, and we are seeing a willingness by banks and brokerages to invest in new trading floor technology, especially Voice over IP and business continuity solutions," adds Boxer.

Net income from continuing operations stands at $2.1 million, up from a loss of $1.4 million in the same quarter last year.

The results present the ITS division as a discontinued operation, reflecting the sale of its assets in July 2004. Financial expectations for the unit for the full fiscal year 2004 were $46 million of revenue and $200,000 of operating income. The loss from discontinued operations includes charges for disposal of the business as well as operating losses for the 9 months ended June 30, 2004.

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