STAMFORD, Conn., July 29 /PRNewswire-FirstCall/ -- NYFIX, Inc. (Nasdaq: NYFX), a leader in technology solutions for the financial marketplace, today announced its financial results for the second quarter ended June 30, 2004.
Second Quarter Results
Revenue for the second quarter of 2004 was $18.2 million, up 6% from $17.1 million for the first quarter of 2004 and up 16% from $15.7 million for the second quarter of 2003. The net loss was $2.9 million ($0.09 per common share) for the second quarter of 2004 as compared to a net loss of $1.1 million ($0.03 per common share) for the first quarter of 2004 and a net loss of $1.1 million ($0.03 per common share) for the second quarter of 2003.
During the second quarter of 2004, the Company consolidated its New York operations into a single location, combining operations for NYFIX, Javelin and Renaissance. In connection with this and the elimination of approximately 15 staff positions, the Company recorded a charge to operations of $2.5 million, which includes the remaining lease payments (net of estimated sub-lease income), severance and the write-off of leasehold improvements. In addition to operational efficiencies, the Company believes that it can realize an annual lease savings of approximately 20%. "More importantly we believe the move is strategically significant, as we are confident the full integration of our operations in one location will facilitate a more collaborative environment as well as cost savings," commented Peter Kilbinger Hansen, Chief Executive Officer of NYFIX, Inc.
Cash, cash equivalents and short-term investments were $21.4 million at June 30, 2004 as compared to $24.5 million at December 31, 2003. Accounts receivable was $12.0 million at June 30, 2004 as compared to $10.4 million at December 31, 2003. Cash provided by operating activities was nil for the second quarter of 2004 as compared to $1.9 million for the first quarter of 2004 and $6.1 million in the second quarter of 2003.
In its sellside business, the Company continues to fine tune its strategy to adapt to changing market conditions. The Company's NYFIX Platinum offering, which is the Listed and OTC trading platform that includes the Renaissance Trader Workstation, has made progress in the market. To date, NYFIX has signed 17 clients for the system, 11 of which are already in production. The Company expects that this product will drive its growth in the broker/dealer marketplace and has already displaced competitive systems at numerous client sites, which we see as a positive indicator of the product's acceptance in the market.
The NYFIX Network continues to differentiate itself as a core asset. In addition to extensive sellside penetration, the Company has continued its buyside expansion efforts and has contracted with 127 buyside firms for NYFIX Network connectivity. On the transaction side, the Company has developed a number of new products, including a variety of smart order routing functionalities and execution quality assessment/transaction costs analysis tools. These innovative offerings bolster the Company's product line, which in the Company's view makes the NYFIX Network and value-added services a very competitive offering in the marketplace.
On the international front, the Company has taken a number of steps to expand its offerings to the global marketplace. In addition to going live with new data centers in London and Amsterdam, the Company has secured space for data centers in Hong Kong and Tokyo, which it expects will go live during the third quarter of 2004. The Company has also spent considerable effort cultivating the European transaction market and expects to expand its efforts this year.
"Our emphasis remains on achieving profitability," said Mr. Hansen. "We have made considerable investments and are focused on obtaining a return on those investments. I believe our new offerings combined with the strength of our NYFIX Network and cost control will help us to demonstrate revenue and earnings growth going forward."
The Company expects revenue for the third quarter of 2004 to be in the range of $19 million to $21 million. Third quarter earnings per common share is expected to be in the range of a net loss of $0.01 to net income of $0.01 per common share. Revenue for the fourth quarter of 2004 is expected to be in the range of $20 million to $23 million with earnings per share within the range of breakeven to net income of $0.03 per common share.
Second Quarter 2004 Conference Call On The Web
In conjunction with the above release of second quarter 2004 results, you are invited to listen to the Company's conference call that will be broadcast live over the Internet today, Thursday, July 29, 2004 at 12 noon eastern time with the Company's senior management.
What: NYFIX, Inc. 2004 Second Quarter Conference Call and Business Update
When: Today, Thursday, July 29, 2004 at 12 noon