Belzberg Reports Third Quarter 2010 Financial Results

TORONTO, Nov. 12 /CNW/ - Belzberg Technologies Inc. (TSX -BLZ), a provider of technology-based equity and options trading services, announced today its financial results for the three months ended September 30, 2010.

Major elements of the third quarter statements include:

• Net revenue declined approximately 9% from $3.8M in the second quarter to $3.5M in the third quarter.
• Operating expenses decreased approximately 6% or $0.2M from the previous quarter.
• Non-operating expenses of $0.4M in the third quarter versus a gain of $0.9M in the second quarter. (Foreign exchange translation loss of $0.4M versus a gain of $0.6M and a restructuring expense recovery of $0.2M).
• Loss of ($2.1M) or ($0.15) per share for the second quarter as compared to a loss of ($0.7M ) or ($0.05) per share for the second quarter of 2010.
• Working capital position of $ 12.0M at September 30, 2010, as compared to $13.8M at June 30, 2010.

"Trading volumes were down industry-wide in the third quarter," said Judith Robertson, President and CEO.  "We are managing our resources carefully through this difficult period and continue to seek scale."

Financial Highlights		Three Months Ended
(unaudited) (in thousands of dollars, except per share data)		September 30 2010		June 30 2010		September 30 2009
Total revenue		$	3,432	$	4,695	$	8,161
Net revenue		$	3,484	$	3,823	$	5,348
Loss from operations (1)		$	(1,708)	$	(1,590)	$	(1,592)
Net loss		$	(2,156)	$	(721)	$	(2,350)
Diluted loss per share		$	(0.15)	$	(0.05)	$	(0.16)
(1) Before restructuring charges/recovery, government assistance, foreign exchange translation loss/gain, interest income/expense

About Belzberg Technologies

Belzberg Technologies Inc. is a provider of trading technology and technology-based brokerage services for equities and options.  Belzberg Technologies is listed on the Toronto Stock Exchange (Ticker-BLZ) - additional information is available at www.belzberg.com.

Forward-looking statement disclaimer

Except for historical information contained herein, the matters discussed in this press release are based on forward-looking statements that involve risk and uncertainty. A variety of important factors could cause results to differ materially from such statements, including but not limited to economic, competitive, governmental and technological factors affecting the company's operation, markets, products, prices and other factors.

Belzberg Technologies Inc.
Interim Consolidated Balance Sheets
(In thousands of Canadian dollars)

		September 30,		December 31,
		2010		2009
		(Unaudited)
Assets
Current assets:
	Cash and cash equivalents	$	8,813	$	15,670
	Cash and cash equivalents segregated under regulations and other		1,924		2,805
	Cash and cash equivalents on deposit with clearing and depository organizations		1,404		1,363
	Receivable from brokers, dealers and clearing organizations		509		947
	Accounts receivable		1,867		2,405
	Prepaid expenses and other receivables		538		468
	Income taxes receivable		-		12
			15,055		23,670
Capital assets			1,241		2,233
Investment			30		30
Investment tax credits recoverable			144		147
Intangible assets, net			41		141
		$	16,511	$	26,221
Liabilities and Shareholders' Equity
Current liabilities:
	Accounts payable and accrued liabilities	$	1,643	$	5,176
	Payable to customers and correspondents		1,368		1,948
	Payable to brokers, dealers and clearing organizations		28		345
			3,039		7,469
Shareholders' equity:
	Capital stock		23,612		23,754
	Contributed surplus		4,328		4,044
	Deficit		(14,468)		(9,046)
			13,472		18,752
		$	16,511	$	26,221

Belzberg Technologies Inc.
Interim Consolidated Statements of Operations and Retained Earnings (Deficit)
(In thousands of Canadian dollars)
(Unaudited)

		Three months ended				Nine months ended
		September 30,				September 30,
		2010		2009		2010		2009
Revenue:
	Equity order flow and clearing	$	616	$	4,147	$	4,433	$	16,679
	Options and futures contracts		1,692		2,437		5,232		8,623
	Subscription fees		803		1,214		2,579		3,832
	Other		321		363		996		1,135
			3,432		8,161		13,240		30,269
	Recovery (cost) of exchange and clearance fees		52		(2,813)		(1,832)		(12,181)
Net revenue			3,484		5,348		11,408		18,088
Expenses:
	Compensation and related benefits		2,085		3,026		6,794		9,943
	Telecommunication and datafeed services		1,564		1,815		4,824		5,932
	Administrative and other expenses		736		872		2,233		3,114
	Brokerage fees		418		650		1,602		2,304
	Amortization of capital assets		363		522		1,215		1,579
	Amortization of intangible assets		26		55		100		165
			5,192		6,940		16,768		23,037
Loss before the undernoted			(1,708)		(1,592)		(5,360)		(4,949)
Restructuring charges (recovery)			-		-		(221)		839
Government assistance			-		-		(11)		(95)
Foreign exchange loss			445		1,200		291		1,732
Interest expense			4		4		7		22
Interest income			(1)		(40)		(4)		(171)
			448		1,164		62		2,327
Loss before income taxes			(2,156)		(2,756)		(5,422)		(7,276)
Future income tax recovery			-		(406)		-		(1,697)
Loss for the period			(2,156)		(2,350)		(5,422)		(5,579)
Retained earnings (deficit), beginning of period			(12,312)		4,205		(9,046)		7,434
Retained earnings (deficit), end of period		$	(14,468)	$	1,855	$	(14,468)	$	1,855
Loss per share:
	Basic	$	(0.15)	$	(0.16)	$	(0.37)	$	(0.38)
	Diluted		(0.15)		(0.16)		(0.37)		(0.38)
Weighted average number of common equivalent shares outstanding (000's):
	Basic		14,638		14,822		14,654		14,828
	Diluted		14,638		14,822		14,654		14,828

Belzberg Technologies Inc.
Interim Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)
(Unaudited)

				Three months ended				Nine months ended
				September 30,				September 30,
				2010		2009		2010		2009
Cash provided by (used in):
Operating activities:
	Loss for the period			$	(2,156)	$	(2,350)	$	(5,422)	$	(5,579)
	Items not involving cash:
		Amortization of capital assets			363		522		1,215		1,579
		Amortization of intangible assets			26		55		100		165
		Unrealized foreign exchange loss (gain)			268		664		(321)		1,026
		Gain on sale of investment			-		-		-		(5)
		Stock-based compensation			62		75		209		218
		Future income taxes			-		(171)		-		(1,296)
	Change in non-cash operating working capital				44		1,348		(2,669)		(745)
					(1,393)		143		(6,888)		(4,637)
Financing activities
	Repurchase of common shares				-		(22)		(67)		(32)
Investing activities:
	Purchase of capital assets				(88)		(58)		(223)		(900)
	Purchase of intangible assets				-		-		-		(7)
	Purchase of investment				-		-		-		(2)
	Proceeds from sale of investment				-		-		-		15
					(88)		(58)		(223)		(894)
Effect of exchange rate changes on cash and cash equivalents					(268)		(664)		321		(1,026)
Decrease in cash and cash equivalents					(1,749)		(601)		(6,857)		(6,589)
Cash and cash equivalents, beginning of period					10,562		13,464		15,670		19,452
Cash and cash equivalents, end of period				$	8,813	$	12,863	$	8,813	$	12,863
Cash and cash equivalents:
	Cash			$	2,920	$	4,679	$	2,920	$	4,679
	Cash equivalents				5,893		8,184		5,893		8,184
				$	8,813	$	12,863	$	8,813	$	12,863
Supplemental cash flow information:
	Interest received			$	1	$	40	$	3	$	179
	Interest paid				4		4		3		22
	Income taxes paid				-		3		-		18

For further information:

Judith Robertson, President and Chief Executive Officer
Phone: [phone]
E-mail: [email protected]