Wednesday, SEI Investments Co. (SEIC), a provider of outsourced asset management, investment processing and investment operations solutions, reported lower net income for the second quarter hurt by a non-cash pre-tax charge. Revenues for the quarter were down 4% driven by declines in LSV and Investment Advisors segments.
The Oaks, Pennsylvania-based company's second quarter net income declined 34% to $46.16 million from $69.50 million last year. On a per share basis, earnings decreased 29% to $0.24 from $0.34 a year ago. On average, four analysts polled by First Call/Thomson Financial estimated the company to earn $0.33 per share for the quarter.
The company said second quarter net income was adversely affected by $27.3 million non-cash pre-tax charge or about $0.09 per share post-tax, pertaining to earlier-disclosed support agreements covering holdings of structured investment products by company-sponsored money market funds. This current period charge enhances the total accrual for these support agreements to $78.2 million.
Revenue for the quarter was $329.52 million, down 4% from $343.26 million last year. Analysts expected the company to post revenues of $341.00 million for the quarter. The LSV and Investment Advisors segments' revenues were down and were most directly affected by the weakening capital markets.
For the six-month period, net income was $95.11 million, down 28% from $132.88 million a year ago. On a per share basis, earnings declined 26% to $0.48 from $0.65 in the same period of the prior year.
Revenues decreased to $663.43 million from $665.98 million in the comparable period of the previous year.
SEIC is currently quoting at $23.18, down $0.29 or 1.24%, on a volume of 2.12 million shares on the Nasdaq.
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