DLJdirect (NYSE: DIR) fell 1 7/16 to 7 Tuesday after the online brokerage operated by Donaldson, Lufkin & Jenrette Securities reported a loss for the second quarter.
DLJdirect said that while revenue rose 40 percent to $84 million, losses totaled $6.6 million, or 6 cents per diluted share, compared with a profit of $5.1 million, or 5 cents, in the same quarter last year.
“Unprecedented market volatility over the past three months made for a challenging quarter for the online brokerage industry,” said Chief Executive Officer Blake Darcy.
With the Nasdaq Stock Market down more than 40 percent from its high at the end of the first quarter, the company nevertheless reported a 27 percent rise in commissions from a year earlier. Commissions were 39 percent below first-quarter levels, however, as market volatility kept many investors from trading.
DLJdirect said expenses for the quarter rose to $91.9 million from $48.8 million. “We are continuing to build our franchise both domestically and internationally,” said President Glenn Tongue. “The online brokerage industry is still in its early stages in terms of worldwide customer penetration.”