Investment banking service provider Cowen Group, Inc. (COWN), Tuesday reported a narrower loss for the fourth quarter on lower expenses, even as revenue dropped from the prior year, reflecting decreased activity in the options business. On a per share basis, however, loss for the quarter widened from the prior year on lower share count.
Fourth quarter net loss for Cowen narrowed to $10.39 million from $10.70 million in the same quarter a year ago. On a per share basis, the loss widened to $0.92 from $0.86 on a lower share count for the quarter under review.
Results for the quarter reflect a $1.6 million provision for income taxes primarily due to a valuation allowance against certain deferred tax assets.
On average, 6 analysts polled by Thomson Reuters expected a loss of $0.23 per share for the quarter. Analysts' estimate typically excludes one-time special items.
Quarterly revenues decreased 30% to $41.63 million from $59.30 million in the prior-year quarter.
Total expenses were $50.52 million, down from $76.09 million in the comparable quarter a year ago. Operating loss also narrowed to $8.89 million from $16.79 million in the corresponding quarter last year.
For full-year 2008, net loss widened to $72.15 million or $6.41 per share from $11.32 million or $0.88 per share in the prior year.
The Street expected a loss of $0.54 per share for the year.
Full-year results included a non-recurring $50.0 million non-cash charge related to the impairment of legacy goodwill.
Revenue for the period was down at $217.32 million, compared to $261.57 million a year ago. Analysts expected revenues of $235.37 million for the year.
COWN is currently trading at $5.30, down $0.15 or 2.75%, on the Nasdaq.
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