Broadridge Financial Solutions Inc. reported Wednesday its profit dropped 27% in the July-September period compared with a year earlier because of less demand for its investor communications services.
The company, headquartered in Lake Success, said its profit totaled $56 million in the quarter ended Sept. 30, compared with $77 million a year earlier.
Revenue for the three-month period totaled $949 million, down 2% year over year.
Broadridge delivers billions of documents to shareholders each year and processes trillions of dollars in stock trades each day. It has large processing facilities in Edgewood, where about 2,300 people work.
Executives said Thursday the company's financial performance in the July-September quarter was impacted by fewer shareholder proxy fights and other corporate events compared with the 2018 calendar year.
“As expected, event-driven revenues returned to normalized levels from last year’s record [fiscal] first quarter,” CEO Timothy C. Gokey said. He added that “Broadridge reported solid first-quarter results and is well positioned to deliver a strong fiscal year 2020,” which ends June 30.
Gokey said Broadridge continues to purchase small companies that “further position us for long-term growth.”
Broadridge disclosed Wednesday the details of three recent acquisitions.
The largest is Fi360 Inc., which was purchased for $120 million earlier this month. Fi360 offers training for the Accredited Investment Fiduciary designation, or AIF, which is used by investment advisers. The company has 92 employees and is based in Pittsburgh, according to a Broadridge spokeswoman.
Last month, Broadridge bought Shadow Financial Systems Inc. for $39 million. Shadow, which is based in New Jersey, sells software for processing and recording stock trades and other financial transactions – including those where cryptocurrency is used for payment. The company has about 50 employees, according to the business information service Dunn & Bradstreet.
Broadridge spent $12 million for Appatura Inc., which sells software to mutual funds for managing data and other content. The software aids in complying with securities regulations.
Broadridge shares closed down $6.56, or more than 5%, to $116.84 on the New York Stock Exchange on Wednesday.