Investment management firm SEI Investments Co. (SEIC) reported Wednesday a decline in second-quarter profit, reflecting a 24% drop in revenues. On a per-share basis, earnings came in above analysts' estimate by a penny.
For the second quarter, net income decreased to $64.13 million from $82.74 million last year. Net income attributable to SEI slid to $41.57 million or $0.22 per share from $46.16 million or $0.24 per share in the previous year.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.21 per share for the second quarter. Analysts' estimates typically exclude special items.
SEI noted that results for the latest quarter included losses of $2.3 million pertaining to SIV-related issues involving SEI-sponsored money market funds.
Total revenues for the period shrank 24% to $252.0 million from $329.52 million, as revenues declined across all segments owing to the slump in capital markets. Four analysts were expecting revenue of $249.59 million for the second quarter.
Asset management, administration and distribution fees declined year-over-year to $183.21 million from $260.93 million, and information processing and software servicing fees came down to $54.69 million from $57.09 million last year. Transaction-based and trade execution fees rose to $14.11 million from $11.50 million in the prior-year quarter.
Alfred West, Jr., SEI's chief executive, said, "We have resized our company and put in place certain cost reduction initiatives which are reflected in our second-quarter results."
Total expenses decreased to $162.02 million from $194.33 million. Commissions and fees came down to $36.14 million from $43.04 million. Compensation, benefits and other personnel costs decreased to $67.03 million from $83.53 million and consulting, outsourcing and professional fees dipped to $18.71 million from $26.61 million in the prior-year quarter.
For the the first six months of 2009, net income attributable to SEI decreased to $75.77 million or $0.40 per share from $95.11 million or $0.48 per share last year. Revenue dropped 25% to $500.62 million from $663.43 million in the same period of the prior fiscal year.
SEIC is currently trading at $18.40, down $0.05 or 0.27%, on the NASDAQ.
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