Source: Belzberg Technologies
Belzberg Technologies Inc. (TSX - BLZ), a leading provider of technology-based equity and options trading services, today announced that in the third quarter ended September 30, 2006, net earnings increased 41% to $1.5 million or $0.10 per share on a fully diluted basis after incurring $0.2 million of expenses related to the strategic process announced on August 9, 2006. This compared to net earnings of $1.1 million or $0.08 per share on a fully diluted basis in the third quarter of 2005. Total revenues for the third quarter increased 6% to $8.8 million versus $8.3 million in the same year-ago period. The strengthening Canadian dollar adversely impacted revenue growth for the third quarter on a year over year basis by approximately $0.4 million, as reported in Canadian dollars.
"I am pleased with the solid results we were able to achieve this quarter, despite the seasonal industry-wide slowdown we experienced," stated Sid Belzberg, Chief Executive Officer of Belzberg. "We made significant strides in developing new products and services that are being rolled out to our customers during the fourth quarter."
"Customer interest is strong in our recently released ChatTrader, a new product that gives buy-side institutions the ability to use any standard Instant Messaging service to send trades to and receive indications of interest ("IOIs") from CBOE or NYSE floor traders. Alternately, orders can be executed directly to the DOT, NYSE Hybrid trading system, or to all of the ECNs or other options exchanges. We also received approval from the NYSE to conduct direct access business with the buy-side directly from the floor of the NYSE."
Average daily volume of equity order flow executed by Belzberg Technologies wholly owned U.S. broker-dealer subsidiary increased by 70% to 43.8 million shares per day in the third quarter of 2006 compared to 25.8 million shares per day in the same year-ago quarter.
Average daily volume of electronic equity and index options contracts traded were 166,000 contracts per day in the third quarter of 2006 compared to 167,000 contracts per day in the same year-ago quarter.
The Company strengthened its financial position with cash and cash equivalents of $12.4 million and working capital of $18.2 million at September 30, 2006, up from cash and cash equivalents of $7.1 million and working capital of $10.5 million at December 31, 2005.
The Company continues the process of the strategic alternatives initiative and has no developments to report at this time.