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UPDATE 2-CompuCredit Q3 loss wider-than-expected; shares fall

Wed Nov 5, 2008 6:27pm EST

Stocks

   

* Q3 net loss $0.69/shr vs $1.10/shr last year

* Q3 managed loss $0.72/shr vs loss estimate of $0.62/shr

* Total interest income down 81 pct at $24.5 mln

* Shares down 18 pct

* Sees Q4 total interest income lower than last year's (Adds details from regulatory filing)

Nov 5 (Reuters) - CompuCredit Corp (CCRT.O) posted a wider-than-expected loss for the third-quarter as the marketer of branded credit cards and related financial services saw a significant decline in total interest income, sending its shares down more than 18 percent.

The company expects a year-over-year decline in fourth-quarter total interest income, it said in a filing with the U.S. Securities and Exchange Commission.

"We expect interest income within our Auto Finance segment to decline with net liquidations in its receivables levels for the foreseeable future," CompuCredit said.

Due to tightening liquidity, the company significantly restricted growth within its auto finance segment during the third quarter, it said.

CompuCredit's quarterly results included pre-tax charges of $29.2 million for Auto Finance segment goodwill impairment.

The company posted a quarterly loss of $32.3 million, compared with a loss of $53.2 million a year earlier.

On a managed basis, excluding certain items, it lost $33.7 million, compared with $46.5 million it earned last year.

Net interest margin fell to 15.1 percent from 18.7 percent last year.

Shares of the Atlanta, Georgia-based company were down 16 percent at $2.39 in after-hours trading on Nasdaq.

For the press release, please click [ID:nMKW49478a] . For the alerts, please click [ID:nWNAB8499]. (Reporting by Adheesha Sarkar in Bangalore; Editing by Gopakumar Warrier)



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