SS&C Technologies, which provides software-enabled services to hedge funds and other big investors, said its second-quarter profits rose 40%, thanks to lower costs and expenses.
The Windsor-based company on Tuesday afternoon reported a profit of $169.5 million, or 64 cents per diluted share, for the three-month period ended June 30, up from $121.1 million, or 45 cents per share, in the second quarter of last year.
Though revenue declined slightly, lower costs and operating expenses made up for it.
The results beat analyst consensus estimates compiled by Zacks Investment Research.
SS&C has grown significantly over the past decade through acquisitions, becoming the largest administrator for “alternative” funds, such as hedge funds. In recent months, two companies have filed separate lawsuits against SS&C alleging antitrust violations.
On an earnings call Tuesday, an analyst asked CEO Bill Stone about the two lawsuits, filed by SEI Global and Arcesium, and whether the disagreements reflect a broader resistance to SS&C’s recent efforts to increase its pricing.
Stone said the disputes are outliers and pointed to the company’s 96% retention rate among its customers as evidence of strong relationships.
“There are contractual issues in both cases that have nothing to do with pricing,” Stone said.
