Capital markets technology vendor Nyfix is reporting revenues for the first quarter of 2003 just shot short of guidance at $17.3 million, and net income of $76,000.
Revenue for the first quarter was consistent with Q1 2003, while income fell short of the year ago period by $16,000.
Peter Kilbinger Hansen, chief executive officer of Nyfix, says that growth in some sectors was offset by timing or reduction of spending by brokerage customers.
"It seems the sector has reached a bottom plateau," he says. "Experiencing good acceleration for new products and market segments, we expect to see positive quarterly revenue increases in the second half of 2003, with potentially strong upside in certain sectors."
Nyfix expects revenue for the second quarter of 2003 to be in the range of $17.4 million to $18 million. This compares to $13.1 million for the second quarter of 2002 and $17.3 million for the first quarter of 2003. Second quarter income per common share is expected to be in the range of breakeven to $0.02. This compares to a net loss of $(0.10) per common share in the second quarter of 2002 and breakeven per common share for the first quarter of 2003.
The company says it has signed 40 agreements with buyside institutions to connect to the Nyfix Network following its acquisition of Javelin Technologies last year. These first agreements are for basic services which include agreements to connect to an average of 15 brokerage firms representing more than a total of 600 cross connections - a number that the company expects to approximately double in the next year.
Says Kilbinger Hansen: "There are many prospects in the sector and, if our sign up rate continues, this could prove to be a most important move in the direction of meeting the Company's growth goals."
Seperately, Nyfix afilliate, Renaissance Trading Technologies, has named JMP Securities as the first live production client for its recently launched Trader Workstation product.
The Renaissance Trader Workstation suite was originally developed as a high profile, high budget project over a three year period at Robertson Stephens. The source code and rights to the product were acquired jointly by Nyfix and former Robertson Stephens staff operating under the Renaissance banner.
Renaissance says it has signed several contracts and is scheduled to roll out the software suite for the Nasdaq market to additional clients during the second quarter. In addition to the current product offering, the company is finalising development of two more products - an integrated Quote Management System and Smart Order Routing product for delivery to the market later this year.