Calamos Posts Higher Revenues on Increased AUM

Beats analysts expectations for earnings per share

Calamos Asset Management Inc. reported better-than-expected third quarter results late Tuesday with revenues topping $78 million, a 6% increase over the third quarter of 2009.

The company reported net income of $4.7 million, with earnings per share of $0.23, beating analysts' expectations of $0.22, according to Reuters.

"In the third quarter of 2010, Calamos Asset Management maintained its strength in both the overall financial health of the company as well as in the relative performance of our investment strategies," said Chairman and CEO John Calamos, Sr. in a press release.

"The company has displayed stability amid economic uncertainty and continued market volatility," he added.

Assets under management for the third quarter increased 9% over the second quarter to $32.6 billion. The company attributed the increase to $3.1 billion in market appreciation partially offset by $0.4 billion in net redemptions. Investment management fees increased to $57.6 million, driven by an 8% increase in average assets under management to $31 billion.

Despite the increase in AUM in the third quarter, assets under management fell $151 million in the first nine months of 2010, as net redemptions of $1.7 billion topped market appreciation. Still, average AUM increased to $31.7 billion for the first three quarters, compared with $26 billion for the same period last year.

Operating income was $30.6 million, up from $29.7 million in the second quarter of 2010 and $27.4 million in the third quarter of 2009. Revenue growth from the increase in AUM, combined with expense control, contributed to the improvement in operating performance.

The company reported positive inflows to institutional separate accounts, despite net redemptions as a result of outflows from domestic equity mutual funds and net outflows from managed account platforms.

The company noted that emerging markets, and global and international strategies, were an area of particular success, while cautioning that the uncertainty that marked the third quarter is likely to continue.

"The markets were defined by significant volatility this quarter and we anticipate that uncertainty will persist in the months to come. We continue to position our portfolios to manage systemic risk and generate strong performance over complete market cycles," said Calamos.

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