BISYS' wholesale division reported a slight up-tick in its insurance services revenue for the quarter as the company reversed a loss in net income and settled problems over questionable accounting.
For the three months ending March 31, net income was up $302.6 million, going from a loss of $66.4 million, or 56 cents a share, to $236.2 million, or $1.98 a share. Revenues dropped less than 1 percent, or $654,000, going from $212.4 million to $211.7 million.
The Roseland, N.J.-based information and financial services company said BISYS wholesale, which is a major distributor of wholesale property-casualty insurance, along with life, long-term care, disability and annuity products, reported revenues increased more than $1 million, or 2 percent, from $61 million to $62 million for the three months ending June 30, according to a Securities & Exchange Commission filing.
For the nine-month period, insurance services rose slightly more than $1 million, or less than 1 percent, from $182 million to $183 million.
BISYS reports on a fiscal calendar year running from July 1 to June 30.
Operating income for the wholesale unit dropped 11 percent, less than $2 million, going from $17.7 million to $15.8 million. For the nine months, operating income increased almost 2 percent, or $747,000, from $47.9 million to $48.6 million.
The quarterly income decline in wholesale, the company said, was due to increased head count in its wholesale division and an accounting error correction in its life insurance services, but strong revenue growth in its commercial insurance services business aided in the increase.
BISYS reported that in 2005 it sold its information services segment, which included banking and document solutions, for approximately $471 million in cash to Open Solutions Inc. The deal was completed March 3. It sold its education services business to Kaplan Professional for approximately $51 million in cash.
The company said it has reserved more than $20 million for settlement to the SEC for accounting violations. An internal investigation over accounting practices forced the company to restate earnings last year going back to 2002.
For the nine months, income increased $290 million, from a loss in 2005 of $18.3 million, or 15 cents a share, to $272 million, or $2.27 a share. Revenues decreased 2 percent, or $10.6 million, from $635.3 million to $624.7 million.
The company said it is working to complete its filing for the fiscal period ending June 30, but the filing would be a few weeks late.
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