Nyfix revises guidance; expects to report Q2 loss
24 July 2003 | 2644 views | 0
US electronic trading vendor Nyfix has warned investors to expect a second-quarter loss and lower revenues when it reports trading figures next week, as brokerage clients continue to defer spending.
The firms says it now anticipates a Q2 loss of 3 cents a share, compared with its April guidance of break-even to income of 2 cents a share. Second-quarter revenues have been marked down by $2 million at the upper level to no more than $16 million.
The company says its core customer base, the brokerage segment of the financial industry, has been facing a challenging environment, which in turn has impacted revenue.
Costs have also continued to rise as the firm has launched initiatives designed to broaden its offering and diversify its customer base into other segments of the financial industry. Redundancies made elsewhere have been offset by new hires to support this expansion.
Peter Kilbinger Hansen, Nyfix chief executive, comments: "While we'd prefer to report more consistent performance quarter over quarter, we believe that incurring costs to take the necessary steps to expand our offering will benefit our customers and shareholders over time."
Seperately, Nyfix welcomed Bill Jennings, a PwC partner and former CFO at Bankers Trust and SVP at Shearson Lehman Brothers, onto its board of directors.