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. 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.