OptionsXpress 2Q profit falls 31%

Online brokerage OptionsXpress'profit fell 31 percent in the second quarter as expenses rose 48 percent, the firm reported today.
JUL 24, 2009
Online brokerage OptionsXpress'profit fell 31 percent in the second quarter as expenses rose 48 percent, the firm reported today. The Chicago-based company reported net income of $16.1 million, or 28 cents per share, compared with $23.3 million, or 39 cents per share, in the same period a year ago. Revenue rose to $61.7 million from $61.6 million. Expenses climbed to $36.5 million from $24.6 million. Analysts surveyed by Thomson Reuters expected profit of 26 cents per share on revenue of $53.9 million. The results included a one-time expense of $400,000 related to the acquisition of Optionetics Inc. on May 4. The company said daily average revenue trades increased 21 percent over a year ago and net new accounts grew 16 percent. "The ability of our customers to invest in a broad range of products in one account led to resiliency in customer assets and allowed us to benefit from record trading demand for equities, CEO David Fisher said in a statement. "The result was an increase in earnings over the first quarter of this year despite continued low short-term interest rates and a weak macroeconomic environment." He said the company plans to aggressively develop new products including a new mobile application and an active trader platform. Shares climbed $1.20, or 7.8 percent, to $16.65 in afternoon trading. They have traded between $8.38 and $26.95 in the past year.

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