NEW YORK, Oct. 31, 2013 (GLOBE NEWSWIRE) -- Liquid Holdings Group, Inc. (Nasdaq:LIQD) ("Liquid" or the "Company"), a provider of cloud-based order and execution management, risk and reporting software solutions for the financial services community, today reported results for the third quarter ended September 30, 2013.
Financial Highlights for the Third Quarter of 2013
Annual Contract Value rose 85% quarter over quarter to $3.2 million
Customer base grew 60% from June 30, 2013 to 48 customers
Total contracted software units rose 35% from June 30, 2013 to 565 units
Software services revenue increased 10% quarter over quarter to $732,000
GAAP basic and diluted EPS of $(0.52)
Adjusted basic and diluted EPS of $(0.18)
"We are pleased with our third quarter performance and the continued momentum of our cloud-based platform in the market. During the quarter, we entered into two major strategic partnerships, expanded our presence in international markets and substantially grew our client base. We attribute this success to our next-generation OERMS platform, which is the only solution in the market that integrates real-time risk within an OEMS system," said Brian Storms, CEO of Liquid Holdings. "In addition to executing on the large market opportunity in front of us, we are also exploring the potential to expand our product suite into new applications and customer segments."
Third Quarter 2013 Results
Software services revenue increased during the third quarter of 2013 to $732,000, or 10%, from $667,000 in the second quarter of 2013. Total revenue decreased in the third quarter of 2013 to $732,000 from $1.4 million in the second quarter of 2013. As previously disclosed, during the second quarter of 2013, Liquid exited the over-the-counter brokerage business in order to focus on software services, which accounted for the decline in total revenue.
GAAP net loss for the third quarter of 2013 was $12.2 million, or $0.52 per basic and diluted share, compared to a net loss of $21.7 million, or $1.04 per basic and diluted share, in the second quarter of 2013. The net loss for the third quarter was due primarily to compensation expense of $6.1 million, depreciation and amortization of $1.8 million, professional fees of $1.3 million and income tax expense of $1.3 million. Compensation expense included $1.9 million of share-based compensation. Depreciation and amortization was predominantly for amortization of acquisition-related intangible assets. Professional fees included an increase in costs associated with Liquid now being a publicly traded company. During the third quarter, Liquid converted to a corporation from a limited liability company. As such, a tax adjustment was made to revalue deferred tax liabilities at current corporate income tax rates, the result of which was a charge to income tax expense of $1.3 million. Also contributing to the third quarter loss was an expense of $650,000 incurred in connection with the completion of last year's Fundsolve acquisition via the settlement of a contingent consideration payable that was paid in shares of Liquid common stock (the "Fundsolve Issuance").