Piper Jaffray Companies Announces Second Quarter Results
Piper Jaffray Companies Announces Second Quarter Results: 7/16/2008 8:01:00 AM MINNEAPOLIS--(BUSINESS WIRE)--July 16, 2008--Piper Jaffray Companies (NYSE: PJC) today announced a net loss from continuing operations of $5.1 million, or $0.32 per share, for the quarter ended June 30, 2008. Results from continuing operations in the year-ago period were net income of $10.4 million, or $0.58 per diluted share, and in the first quarter of 2008, a net loss of $3.4 million, or $0.22 per share.
For the second quarter of 2008, continuing operations generated net revenues of $94.9 million, down 23 percent from $122.6 million for the second quarter of 2007 and down 1 percent from the first quarter of 2008.
For the first six months of 2008, the company recorded a net loss from continuing operations of $8.5 million, or $0.53 per share, compared to net income from continuing operations of $25.1 million, or $1.40 per diluted share, for the year-ago period. Net revenues of $190.6 million year-to-date represent a 27 percent decrease over the same period last year mainly driven by lower investment banking revenues.
"We are disappointed to report a loss in the second quarter, which was primarily driven by very challenging market conditions for IPOs and M&A transactions. Partially mitigating the weakness in investment banking, was strong performance in institutional brokerage, particularly fixed income," said Chairman and Chief Executive Officer Andrew S. Duff. "We now believe that the current capital markets downturn will continue through the rest of 2008 and could extend into 2009. We are carefully managing our business with the goal of establishing a stronger market position once the market cycle corrects. At the same time, we are evaluating the appropriate actions to position our firm for a more prolonged market downturn."