Investment Technology Group (NYSE: ITG), a leading agency broker and financial technology firm, today announced that for the first quarter ended March 31, 2009, net income was $12.8 million, or $0.29 per diluted share, down from net income of $33.0 million and earnings of $0.75 per diluted share in the first quarter of 2008.
ITG's total revenue for the first quarter of 2009 was $155.7 million, versus $204.3 million for the first quarter of 2008. Pre-tax margins in the first quarter of 2009 were 15.1 percent, a decrease from the 28.9 percent realized in the first quarter of 2008. Included in this quarter's operating results were pre-tax charges of $5.7 million, or approximately $0.10 per diluted share of earnings, related to severance costs, versus pre-tax charges of $1.2 million, or approximately $0.02 per diluted share of earnings in the first quarter of 2008.
"The first quarter was challenging with light trading volumes from our long-only institutional constituents who utilize our full range of product offerings, which impacted our average commission rate," said Bob Gasser, ITG's Chief Executive Officer and President. "Despite these recent pressures, we remain confident that when markets recover and institutional fund managers experience net inflows of assets, ITG's best-in-class desktop, algorithmic, crossing, and analytical products combined with our global reach should enable us to return to a more typical mix of business and enhance shareholder returns."
ITG's non-US revenues were $38.3 million in the first quarter of 2009, a decrease from revenues of $49.9 million in the first quarter of 2008. Non-US operations generated a $2.1 million loss in the first quarter of 2009, compared to $2.0 million of net income in the first quarter of 2008.
"The global recession's impact on international share prices has affected our results due to ad valorem pricing conventions outside North America," said Mr. Gasser. "However, we continue to invest in our international operations to gain share in these markets and generate up-side leverage in operating performance when the global economy recovers."