NEW YORK (
) -- Broker-dealer
posted its first profit in six quarters, aided by higher revenue and cuts in staff costs.
Net income improved to $783,000, or 1 cent per share, from a loss of $32.8 million, or 27 cents per share, in the year-ago quarter. Adjusted for special items, earnings came in at 16 cents per share, compared to 5 cents in the year-ago quarter. Analysts were expecting earnings of 2 cents per share.
The stock is soaring 6.3% at $7.11 in Thursday morning trading.
Revenue net of interest and transaction expenses grew 6.5% to $289.43 million from $271.52 million in June 2009 on improving market conditions.
CEO Jon Corzine, the former U.S. Senator and Governor of New Jersey who took over leadership of the company in late March, said he was pleased the company had returned to profitability.
"In my first 100 days, MF Global has taken proactive steps to more closely align our compensation structure with industry best practices and shareholder interests, in addition to improving our capital structure and enhancing our value proposition by expanding client facilitation activities," he said in a statement.
Employee compensation expenses declined 9% to $155.37 million. Non-compensation expenses declined 18% to $91.4 million from $111.3 million.
The company raised $ 174.4 million in June from a public offer and used it to meet fees and expenses related to its exchange offer for outstanding debt and preferred securities.
-- Reported by Shanthi Venkataraman in New York.
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