Belzberg Reports First Quarter 2010 Financial Results

TORONTO, May 11 /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 March 31, 2010.

Major elements of the first quarter statements include:

    
    -  Net revenue decreased by 29% to $4.1 million for the first quarter of
       2010 from the previous quarter.

    -  Operating expenses decreased 14% or $1.0M for the first quarter of
       2010 from the previous quarter.

    -  Loss of $2.5M ($0.17) per share for the first quarter of 2010 as
       compared to a loss of $10.9M ($0.74) per share in the previous
       quarter.

    -  Working capital position of $14.1M at March 31, 2010 as compared to
       $16.2M at December 31, 2009.
    

"The first quarter of 2010 presented a challenging operating environment," said Judith Robertson, President and CEO. "We are starting to see the benefits of our cost reductions and restructuring program in lower operating costs. In addition, we continue to seek scale through partnerships and combinations."

    
    -------------------------------------------------------------------------
    Financial Highlights
    (in millions of dollars, except                 Three Months Ended
     per share data)                      March 31  December 31     March 31
    (Three month periods unaudited)           2010         2009         2009
    -------------------------------------------------------------------------
    Total revenue                       $      5.1   $      7.9   $     11.2

    Net revenue                         $      4.1   $      5.0   $      6.7

    Net loss                            $     (2.5)  $    (10.9)  $     (1.8)

    Net loss before restructuring and
     unusual non-cash charges           $     (2.5)  $     (2.6)  $     (1.0)

    Diluted loss per share              $    (0.17)  $    (0.74)  $    (0.12)

    Diluted loss per share before
     restructuring and unusual non-cash
     charges                            $    (0.17)  $    (0.17)  $    (0.07)
    -------------------------------------------------------------------------
    

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.
    Consolidated Balance Sheets
    (in thousands of Canadian dollars)
    -------------------------------------------------------------------------

                                                  March 31,     December 31,
                                                      2010             2009
                                                (Unaudited)        (Audited)
                                               ------------     ------------
    ASSETS

    CURRENT
      Cash and cash equivalents                   $ 10,797         $ 15,670
      Cash and cash equivalents segregated under
       regulations and other                         2,863            2,805
      Cash and cash equivalents on deposit with
       clearing and depository organizations         1,647            1,363
      Receivable from brokers, dealers and
       clearing organizations                          622              947
      Accounts receivable                            2,842            2,405
      Prepaid expenses and other receivables           487              468
      Income taxes receivable                           12               12
    -------------------------------------------------------------------------
                                                    19,270           23,670


    CAPITAL ASSETS                                   1,884            2,233

    INVESTMENT                                          30               30

    INVESTMENT TAX CREDITS RECOVERABLE                 142              147

    OTHER INTANGIBLE ASSETS, NET                       104              141
    -------------------------------------------------------------------------
                                                  $ 21,430         $ 26,221
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES

    CURRENT

      Accounts payable and accrued liabilities    $  3,146         $  5,176
      Payable to customers and correspondents        2,065            1,948
      Payable to brokers, dealers and
       clearing organizations                            -              345
    -------------------------------------------------------------------------
                                                     5,211            7,469

    SHAREHOLDERS' EQUITY

    CAPITAL STOCK                                   23,612           23,754

    CONTRIBUTED SURPLUS                              4,198            4,044

    DEFICIT                                        (11,591)          (9,046)
    -------------------------------------------------------------------------
                                                    16,219           18,752
    -------------------------------------------------------------------------
                                                  $ 21,430         $ 26,221
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    BELZBERG TECHNOLOGIES INC.
    Consolidated Statements of Operations and Retained Earnings (Deficit)
    For the three months ended March 31, 2010 and 2009
    (in thousands of Canadian dollars, except per share amounts)
    (Unaudited)
    -------------------------------------------------------------------------

                                                      2010             2009
                                               ------------     ------------

    REVENUE

      Equity order flow and clearing              $  2,154         $  6,290
      Options and futures contracts                  1,711            3,189
      Subscription fees                                935            1,395
      Other revenue                                    313              412
    -------------------------------------------------------------------------
                                                     5,113           11,286
      Cost of exchange and clearance fees           (1,012)          (4,559)
    -------------------------------------------------------------------------
    TOTAL NET REVENUE                                4,101            6,727
    -------------------------------------------------------------------------

    EXPENSES
      Compensation and related benefits              2,552            3,755
      Telecommunication and datafeed services        1,700            2,050
      Administrative and other expenses                765            1,190
      Brokerage fees                                   667              985
      Amortization of capital assets                   442              523
      Amortization of intangible assets                 37               55
    -------------------------------------------------------------------------
                                                     6,163            8,558
    -------------------------------------------------------------------------

    LOSS BEFORE THE UNDERNOTED                      (2,062)          (1,831)

      Restructuring expenses                             -              839
      Foreign exchange loss                            482              168
      Interest expense                                   3                6
      Interest income                                   (2)             (87)
    -------------------------------------------------------------------------
                                                       483              926
    -------------------------------------------------------------------------

    LOSS BEFORE INCOME TAXES                        (2,545)          (2,757)

    RECOVERY OF INCOME TAXES
      Future                                             -             (933)
    -------------------------------------------------------------------------
                                                         -             (933)
    -------------------------------------------------------------------------

    NET LOSS                                        (2,545)          (1,824)

    RETAINED EARNINGS (DEFICIT),
     BEGINNING OF PERIOD                            (9,046)           7,434

    -------------------------------------------------------------------------
    RETAINED EARNINGS (DEFICIT), END OF PERIOD    $(11,591)        $  5,610
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LOSS PER SHARE:
      Basic                                       $  (0.17)        $  (0.12)
      Diluted                                     $  (0.17)        $  (0.12)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    WEIGHTED AVERAGE NUMBER OF COMMON AND
      COMMON EQUIVALENT SHARES OUTSTANDING
      (in thousands)
      Basic                                         14,676           14,835
      Diluted                                       14,676           14,835
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    BELZBERG TECHNOLOGIES INC.
    Consolidated Statements of Cash Flows
    For the three months ended March 31, 2010 and 2009
    (in thousands of Canadian dollars)
    (Unaudited)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                                      2010             2009
                                               ------------     ------------

    CASH PROVIDED BY (USED IN)

    OPERATING ACTIVITIES
      Net loss                                    $ (2,545)        $ (1,824)
      Items not affecting cash
        Amortization of capital assets                 442              523
        Amortization of intangible assets               37               55
        Unrealized foreign exchange loss (gain)        365              (18)
        Gain on sale of investment                       -               (5)
        Stock-based compensation                        79               63
        Future income taxes                              -           (1,014)
      Changes in non-cash working capital items     (2,726)          (9,252)
    -------------------------------------------------------------------------
                                                    (4,348)         (11,472)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
      Purchase of capital assets                       (93)            (427)
      Purchase of intangibles                            -               (7)
      Purchase of investment                             -               (2)
      Proceeds from sale of investment                   -               15
    -------------------------------------------------------------------------
                                                       (93)            (421)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
      Repurchase of common shares                      (67)             (10)
    -------------------------------------------------------------------------
                                                       (67)             (10)
    -------------------------------------------------------------------------

    Effect of exchange rate changes on cash
     and cash equivalents                             (365)              18
    NET DECREASE IN CASH
     AND CASH EQUIVALENTS                           (4,873)         (11,885)

    CASH AND CASH EQUIVALENTS,
     BEGINNING OF PERIOD                            15,670           19,452
    -------------------------------------------------------------------------
    CASH AND CASH EQUIVALENTS,
     END OF PERIOD                                $ 10,797         $  7,567
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    CASH AND CASH EQUIVALENTS:
      Cash                                        $  3,003         $  1,016
      Cash equivalents                               7,794            6,551
    -------------------------------------------------------------------------
                                                  $ 10,797         $  7,567
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    SUPPLEMENTAL CASH FLOW INFORMATION
      Interest received                           $      3         $     90
      Interest paid                                      3                6
      Income taxes paid                                  8               15
    

SOURCE BELZBERG TECHNOLOGIES INC.

For further information: For further information: Judith Robertson, President and Chief Executive Officer, Phone: (416) 360-1812, E-mail: investorinfo@belzberg.com

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BELZBERG TECHNOLOGIES INC.

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