Second quarter report is out, ouch!
The Ashton Technology Group, Inc. Reports Second Quarter Financial Results
PHILADELPHIA--(BUSINESS WIRE)--Nov. 7, 2001--The Ashton Technology Group, Inc. (NASDAQ: ASTN - news) today announced that its net loss for its second quarter ended September 30, 2001 totaled $2.9 million compared to a net loss of $4.3 million in the same quarter of the prior year. The net loss applicable to common stock for the quarter ended September 30, 2001 totaled $.13 per share, compared to a net loss of $.14 per share during the three months ended September 30, 2000.
Revenues increased to $1.2 million during the three months ended September 30, 2001 from $37,778 during the same period last year, and from $205,738 during the three months ended June 30, 2001. Ashton executed a total of 102.4 million shares during the quarter ended September 30, 2001 in its eVWAP(TM) system, a pre-open intelligent matching system offered through the Philadelphia Stock Exchange, compared to 5.2 million shares during the same period in 2000, and 47.2 million in the quarter ended June 30, 2001. Ashton also executed an additional 7.4 million Nasdaq shares during the quarter ended September 30, 2001 away from the eVWAP system.
Since April of 2001, Ashton expanded its eligible list of securities from 150 large-cap stocks to the universe of the S&P 500 Index stocks, which includes approximately 70 Nasdaq issues. Within this list, Ashton has introduced a ``Guaranteed Fill Program'', which has resulted in the availability of up to 100 million shares of liquidity at the volume-weighted average price on a daily basis to selected institutions.
Brokerage, clearing and exchange fees increased to $1.2 million from $134,838 as a result of the costs associated with increased trades executed Croix Securities, Inc., our subsidiary. Total operating costs and expenses excluding brokerage, clearing and exchange fees were $2.9 million during the quarter ended September 30, 2001, compared to $3.5 million during the quarter ended September 30, 2000. Salaries and employee benefits decreased 5% to $1.37 million from $1.44 million due to a fewer employees. Total headcount was 42 at September 30, 2001, compared to 53 at September 30, 2000. Professional fees decreased 56% to $404,638 from $922,671, primarily as a result of a decrease in outsourced labor and legal costs. Selling, general and administrative expenses decreased 5% to $853,512 in the second quarter this year from $896,655 in the second quarter last year.
During the three months ended September 30, 2001, Ashton exchanged its investment in JAGfn for the outstanding shares of UTTC series TK convertible preferred stock, 200,000 series T warrants, 309,500 of the 500,000 outstanding series K warrants, and an additional 39,000 shares of the class B common stock of Ashton Canada. Ashton recognized a $500,000 loss on the exchange, included in other expense, during the quarter. Other expense for the three months ended September 30, 2000 includes a charge of $106,875 for shares of common stock issued in connection with the acquisition of Hudson Knights Securities, LLC in July 2000.
During the year ended March 31, 2001, Ashton's subsidiary, Electronic Market Center, Inc. (eMC) began the orderly winding down of its operations as a result of market conditions and a lack of financing available to complete its development. As a result, eMC's results of operations have been reclassified as discontinued operations. eMC incurred an operating loss of $1,077 and a gain on the settlement of certain liabilities of $601,267 in the three months ended September 30, 2001, compared to an operating loss of $517,792 for the same period in 2000.
Ashton's President, Arthur J. Bacci, said, ``We made significant progress during the second quarter to increase eVWAP volumes and revenue, and to reduce our operating expenses. We continue to take actions to further grow our revenue and reduce expenses during the next six months. These actions include discussions with third parties to accelerate the growth in our trading volumes.'' |
