Nyfix posts net losses for first half 2002
06 August 2002 | 802 views | 0
Electronic trading systems vendor Nyfix has moved to cut $5 million from its cost base after reporting a net loss for the second quarter and first half ended 30 June 2002.
Nyfix is reporting revenue for the second quarter ended June 30, 2002 increased to $13,086,093 from $9,511,359 in the same quarter last year. The company's net loss was $2,919,191 or ($0.10) per basic and diluted share. This compares with net earnings of $1,601,995 or $0.06 per basic and diluted share for the same period last year.
For the six months ended June 30, 2002, revenue was $23,156,626, a 29 per cent increase from revenue of $17,933,510 for the first six months of 2001. Net loss was $2,821,445 or $0.10 per basic and diluted share for the first half of 2002, compared with net earnings of $3,065,537 or $0.12 per basic and $0.11 per diluted share for the same period last year.
The company attributes some of these losses to heavy investment in funding new businesses in a bid to move into new markets. These include Nyfix Millennium, Nyfix Transaction Services, EuroLink Network and most recently, Javelin Technologies. But it remains optimistic that it will see new revenue generation from these new businesses in the third quarter and beyond.
The company has also taken steps to streamline its costs, operations and organisation in order to deliver positive results and growth in upcoming quarters. However, Nyfix does not say where its expected $5 million in cost savings will come from or the implications for staffing levels.
Peter Kilbinger Hansen, chief executive officer of Nyfix, says the company believes its new methods for generating recurring subscriptions and the integration of transaction revenues into execution process is key to delivering strong revenue growth during the second half of this year.