Broadridge reports earnings loss
Broadridge Financial Solutions, a company that provides processing services to financial firms, reported weaker earnings in the quarter ended June 30 due to losses incurred from a business partner.
The Lake Success-based firm said Thursday it earned $83.4 million last quarter compared with $116.2 million during the same period a year ago.
The lower profit was attributed to losses from assets Broadridge held after selling securities clearing contracts to another firm, Penson Worldwide.
Penson had significant financial difficulties this past quarter that resulted in reductions in the value of its stock and debt, which Broadridge held as part of the deal, said Broadridge's vice president for investor relations, Rick Rodick. As a result, Broadridge saw a pretax loss of $74 million last quarter.
"I am very disappointed that the Penson outcome has temporarily offset some of our financial performance momentum in the business," the company's chief executive, Richard Daly, said in a news release.
After adjusting for the Penson loss, Broadridge said it made $128 million last quarter.
Despite a heavy one-time loss, the company reported stronger revenue for the quarter -- bringing in $800.1 million compared to last year's $776.1 million.
Broadridge has 1,800 employees on Long Island. Some 1,600 workers assemble annual reports, proxy statements, ballots and other documents for mailing to investors from four buildings in Islip Town. An additional 200 employees work at the headquarters in Lake Success.
In May, Broadridge was offered $9.8 million in tax breaks from the Suffolk County Industrial Development Agency as part of a larger package to try to keep the Islip operations on Long Island. The company is being courted by other states to relocate.