Nyfix remains in the red
29 July 2003 | 2717 views | 0
Capital markets technology vendor Nyfix is reporting a net loss for the second quarter of $1.1 million on revenue of $15.7 million.
Q2 revenue is 20% up on the $13.1 million reported for the same period last year, but nine per cent down on the previous quarter.
For the six months ended 30 June, 2003, revenue was $33 million, a 42% increase from revenue of $23.2 million for the first sixth months of 2002. Net loss was $1 million or ($0.03) per common share, for the first half of 2003, compared with a net loss of $2.8 million, or ($0.10) per common share, for the same period last year.
Peter Kilbinger Hansen, Nyfix chief executive officer says the company is actively pursuing new lines of business in an effort to reduce its reliance on the depressed brokerage segment. For instance, Nyfix recently assumed 100% control of Renaissance Technologies with a view to developing a package of services for the buy-side.
He says: "We believe that a mix of existing and new services - specifically packaged for the buy-side - has been met with serious interest from this new customer segment."
The company has also recently formed its own clearing subsidiary, Nyfix Clearing Corporation, in an effort to bring down ticket and transaction charges. This is expected to become operational in a couple of months.
"By lowering our cost of doing business, we expect to increase our transaction revenue margins while simultaneously being able to offer our customers very competitive pricing for our services," says Hansen.
The company expects revenue for the third quarter 2003 to be in the range of $16 million to $17 million. Third quarter earnings per common share is expected to be in the range of a net loss of $0.03 to breakeven.