Ideanomics, a financial technology company planning to build a major West Hartford campus, said its first-quarter profits flipped from red to black, despite revenues plummeting as it pivots its business strategy.
For the three months ended March 31, the New York-based company posted net income of $19.9 million, or 17 cents a diluted share, up from a loss of $3.8 million, a loss of 5 cents per share, in the year-ago period.
Ideanomics turned a profit despite its revenues tumbling from $185.9 million to $26.9 million, an 86 percent decrease year over year, which officials said was mainly driven by the company’s ongoing shift in its business focus, away from logistics management and towards digital business consulting services related to traditional financing.
The company said profit margins for its digital asset management services soared during the period as opposed to much lower gains with its logistics management business.
Its stock price opened Tuesday at $1.80 and fell 18.9 percent to $1.50 at closing.
In early April, Ideanomics, formerly known as Seven Stars Cloud, said its full-year loss in 2018 deepened to $27.4 million due to higher costs and expenses.
Ideanomics is looking to build its $283 million Fintech Village on 58 acres of the former UConn campus in West Hartford in 2020. It bought the land from UConn in October for $5.2 million.
The state Department of Economic and Community Development has pledged $10 million for the development.
The West Hartford project is being led by CEO Alfred P. Poor, who assumed the lead post in February after Ideanomics again shuffled its C-suite team.