ITG Stock Trading System Tops Forecast
Updated 12:55 PM ET July 14, 1999
NEW YORK (Reuters) - Investment Technology Group Inc., which operates an
electronic stock trading system, Wednesday reported its first quarterly results as an
independent company and beat analysts' expectations.
The company, which was spun off from Los Angeles brokerage Jefferies Group Inc. in
April, earned a net profit of $8.4 million, or 26 cents per diluted share, in the second
quarter ended June 25. The results, which included $4.5 million in charges for the spin-off,
were down 15 percent from a net profit of $9.9 million, or 32 cents, in the year-ago
quarter.
Excluding the non-recurring spin-off charges, the company earned 36 cents per diluted
share, up 6 percent from 34 cents in the year-ago quarter. The company, which is known
by its "ITG" acronym, beat analysts' expectations of 32 cents a share, according to market
research firm First Call Corp.
Revenues rose to $56.3 million in the quarter, up 11 percent from $50.9 million in the
year-ago period.
ITG derives the brunt of its revenues from a stock-trading system called POSIT, which
matches institutional buy and sell orders every hour at the midpoint between bid and offer
prices. POSIT revenues rose to $32.8 million, up 13 percent from $28.9 million a year
ago.
"Although POSIT had a sluggish beginning in the quarter, volume was actually quite robust
later in the quarter," said ITG's chief executive, Ray Killian, in a conference call.
POSIT handled 25.7 million shares a day in the quarter, up 14 percent from 22.6 million a
day in the year-ago quarter. That compared with a 28 percent increase in volumes in the
first quarter.
ITG's stock was unchanged at $30.13 in trading on the New York Stock Exchange
around noon. |
