While it anticipates a shareholder vote on its May 1 agreement to sell to Citibank
, The BISYS Group
has released its results for the third quarter of fiscal 2007. In an SEC filing
Thursday, the company revealed it has suffered client attrition in its Fund Services division but also brought in new business and increased sales to existing clients elsewhere. "Key client losses and the reduction of certain fees to existing clients" hurt Fund Services revenues, but asset growth bringing higher 12B-1 revenues helped counterbalance these losses.
Revenues in BISYS Investment Services overall climbed 11.2 percent year-to-year for the quarter and 7.4 percent year-to-year for the year to date, with a total of $474 million in revenues for the first nine months of fiscal 2007. Corporate expenses were up in fiscal 2007 to date -- 16.9 percent over the first three months of 2006 -- a difference management attributes primarily to a company-wide retention bonus program.
Looking ahead -- as Citibank surely is -- BISYS leaders predicted slightly lower margins than in fiscal 2006, and modest increases in internal revenue growth. The Citibank deal itself, they said, has put the brakes on new business revenue growth -- thanks to a strategic alternative review process associated with the agreement.
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