Get the latest news and trends on Long Island companies and the people behind them.
Broadridge Financial reports lower profits
Broadridge Financial Solutions, a technology company that services financial firms, reported weaker earnings in the quarter ending June 30 due to losses incurred from a business partner.
The Lake Success firm said 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 incurred from assets Broadridge held after selling securities clearing contracts to another firm, Penson Worldwide.
Penson had significant financial difficulties this past quarter, which resulted in the assets being reduced in value and a pretax loss of $74 million for Broadridge, the company's chief executive Richard Daly said in a news release.
"I am very disappointed that the Penson outcome has temporarily offset some of our financial performance momentum in the business," he added.
After adjusting for the Penson loss, Broadridge said it made $128 million last year.
The company reported better revenue for the quarter, bringing in $800.1 million compared to last year's $776.1 million.