Broadridge Financial Solutions executives last week attributed a slump in their Village of Lake Success-based firm’s earnings for the quarter ending on June 30 on a business partner, which reported losses during that same time span.
Although the firm garnered earnings of $83.4 million last quarter, Broadridge Financial Solutions CEO Richard Daly said last Thursday that number is down significantly from the company’s mark of $116.2 million from the same quarter in 2011.
Daly attributed the loss in profits to one of Broadridge’s partner firms, Penson Worldwide.
“Due to Penson’s financial difficulties, we incurred $74 million in primarily non-cash pre-tax charges in fiscal year 2012 related to assets we held as a result of the sale of substantially all of our securities clearing contracts to Penson and the outsourcing services agreement we entered into with Penson in 2010,” Daly said in a news release.
Broadridge was able rebound from the losses it incurred as a result of Penson’s financial difficulties to make $128 million last quarter, the release said.
“Although we continue to perform services for Penson’s former correspondents under our new Apex contract, I am very disappointed that the Penson outcome has temporarily offset some of our financial performance momentum in the business,” Daly said. “We continue to expect to have good growth in our businesses in fiscal year 2013.”
After taking a loss last quarter, Broadridge reported it still managed to make $800.1 million in revenue last quarter.
During that same quarter last year, the firm said it made $776.1 million in revenue.
It is the kind of growth that Broadridge expects again next year, Daly said.
“Our fiscal year 2013 guidance continues to anticipate solid recurring revenue growth,” the executive said. “We expect recurring revenue growth of 4 percent to 7 percent and total revenue growth of 3 percent to 4 percent, and we believe the revenue growth will primarily be driven by recurring revenue closed sales.”
In February, Broadridge Financial Solutions was honored by Nassau County Executive Edward Mangano as the county’s “Employer of the Month.”
Broadridge employs 6,200 people worldwide. Of those employees, 1,703 work on Long Island, with 200 operating out of the company’s headquarters in Lake Success.
With its focus on global capital markets, Broadridge enables “secure and accurate processing of information for communications and securities transactions among issuers, investors and financial intermediaries” through its operations as a technology services company, the news release said.
“Broadridge builds the infrastructure that underpins proxy services for over 90 percent of public companies and mutual funds in North America, processes more than $4 trillion in fixed income and equity trades per day and saves companies billions annually through its technology solutions,” the release said.
Reach reporter John Santa by e-mail at jsanta@theislandnow.com or by phone at 516.307.1045 x203. Also follow us on Twitter @theislandnow and Facebook at facebook.com/theislandnow.
