Bisys, a New York provider of back office services to financial institutions, is warning that its fiscal year 2007 earnings will be "substantially below" expectations and says it has hired an investment bank to advise it on "strategic alternatives".
The vendor also says its president and chief executive Russell Fradin has quit the company "to pursue another opportunity". Fradin is reportedly joining Hewitt Associates, a human resources services company, as chairman and CEO in September. Bisys chairman Robert Casale will serve as interim president and chief executive while the vendor searches for a permanent successor.
The company says as a result of its CEO's departure it doesn't expect to file its fiscal 2006 results on time and currently projects fiscal 2007 earnings will be "substantially below the current mean First Call consensus estimate", which is 75 cents per share.
Bisys has also hired Bear Stearns to help it explore "strategic alternatives" as part of an effort to maximise shareholder value. Further details on these alternatives were not provided, but these generally include options like a possible sale of the company.