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Broadridge Financial Solutions profit rises to $170 million

Broadridge Financial Solutions' printing and processing center in

Broadridge Financial Solutions' printing and processing center in Edgewood is seen on Wednesday, May 9, 2012. Credit: Newsday / Alejandra Villa

Broadridge Financial Solutions Inc. said Tuesday its profit for the April-June period rose modestly compared with a year earlier on higher revenue from its investor communications business.

The Lake Success-based company reported net income of $170 million for the final three months of its 2016 fiscal year, an increase of 3 percent from the prior year.

Revenue climbed to $975 million, a 5 percent increase year over year.

CEO Richard J. Daly said, “I am especially pleased by the strong demand we saw for our products and services . . . We also continued to deploy capital to strengthen and grow our business” through acquisitions.

Broadridge distributes annual reports, proxy statements and other investor documents to shareholders, and processes transactions for financial institutions. The company maintains a large printing and processing center in Edgewood, where about 2,000 people work.

For the 2016 fiscal year, Broadridge reported its profit rose 7 percent from 2015 to $307 million.

Revenue was up 8 percent to $2.9 billion.

The company also said its acquisition of 4sight Financial Software Ltd. in June cost $38 million. The purchase price had not been disclosed earlier.

The Edinburgh, Scotland-based company sells systems for securities finance and collateral management to banks, stock brokerages and other financial institutions. It was started in 2003 and has 86 employees, a Broadridge spokeswoman said in June.

The 4sight deal was announced two months ago in conjunction with the much larger purchase of the North American Customer Communications division of DST Systems Inc. for $410 million in cash.

Kansas City, Missouri-based DST is a public company providing business data services to the financial services and health care industries.

Daly said Tuesday the DST division “will deliver significant strategic and financial benefits over a multiyear period.” It generated revenue of $1.1 billion last year.

Broadridge shares closed up 14 cents, or 0.2 percent, to $68.63 on the New York Stock Exchange.


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