(Recasts, adds SEC inquiry details)
May 1 Investools Inc SWIM.O posted a
quarterly profit that was below Wall Street estimates and said
the U.S. Securities and Exchange Commission was conducting an
informal inquiry into some presentations, sending its shares
down 20 percent.
The online brokerage and investor education services
company said the inquiry was related to certain presentations
in some of the seminars the company conducted.
Investools said first-quarter net income was $11.5 million,
or 17 cents a share, compared with a net loss of $19.8 million,
or 36 cents a share, a year ago.
Analysts expected the company to earn 21 cents a share,
excluding items, according to Reuters Estimates.
Revenue rose 66 percent to $91 million, marginally above
analysts' estimate of $90.5 million.
Revenue from brokerage services rose to $42.5 million,
while sales transaction volume at the education segment fell 37
percent to $37 million.
The New York-based company's retail daily average revenue
trades -- a key measure of trading activity for retail
brokerage firms -- rose to 45,400 from 15,200.
The company said it plans to change its name to thinkorswim
Group Inc before the year-end. Investools acquired online
brokerage thinkorswim in February 2007.
Shares of the company were trading at $9.95 after the bell.
They closed up 7.7 percent at $12.48 Thursday on Nasdaq.
(Reporting by Dinesh Nair; Editing by Vinu Pilakkott)