A company that sells support services to financial services companies says it will earn less in fiscal year 2007 than securities analysts have predicted.
BISYS Group Inc., Roseland, N.J., also reports that Russell Fradin, the company’s chief executive officer, is taking a new job.
BISYS has a fiscal calendar set up so that fiscal year 2006 ended June 30.
Because of accounting problems, the company has not yet completed its Form 10-Q quarterly financial report for the third quarter of its 2006 fiscal year, and Fradin’s departure may delay efforts to get the CEO certification needed to file the company’s 2006 Form 10-K annual financial report on a timely basis, the company says.
“The company intends to provide additional information concerning the results for the full fiscal year ended June 30, 2006, following the publication of its [third quarter financial report],” the company says.
“Given the present circumstances, [BISYS] expects that its fiscal year 2007 earnings per share results will be substantially below the current mean First Call consensus estimate for fiscal year 2007 earnings per share,” the company says.
BISYS “has recently initiated a process to explore strategic alternatives as part of its continued effort to maximize shareholder value,” the company says.
Bear Stearns & Company Inc., New York, is advising BISYS on strategic alternatives, the company says.
BISYS Chairman Robert Casale, who has been a director of BISYS since 1997 and chairman since 2004, will become the interim CEO while a search committee looks for a permanent CEO, BISYS says.
“Our board of directors and management continue to be sharply focused on addressing the challenges facing the company, on doing what it takes to maintain stability within our business and on identifying and pursuing the path which best serves the interests of the company’s shareholders,” Casale says in a statement about the changes at BISYS.
Fradin is leaving BISYS to become CEO of Hewitt Associates Inc., Lincolnshire, Ill., a human resources services company.
At Hewitt, Fradin will succeed Dale Gifford, the current Hewitt chairman and CEO, who has announced plans to retire.