BISYS announced the resignation of its current chief financial officer, and his replacement, and discussed the company's financial picture without releasing it's quarterly financial report as it works on restating past results.
New York-based BISYS, which provides information services for the insurance industry and is a major property-casualty insurance wholesaler, among its other financial services interests, released a statement saying it is still working to complete its financial restatement.
The company said it expects the restatement will reduce revenues, income and earnings prior to 2004. The restatement will also produce modest increases in 2004 and the first two fiscal quarters of 2005.
BISYS added that it expects positive growth in 2006.
The statement was similar to information the company released in July when it announced the restatement after an internal investigation found questionable accounting.
It also reiterated its conclusion that it expects to pay out $25 million in settlement and costs for a Securities & Exchange Commission investigation into its mutual fund services business.
The company's current CFO, Jim Fox, is leaving, to be replaced by Bruce Dalziel.
In a conference call yesterday, Russell Fradin, president and chief executive officer, indicated that Mr. Fox, who will remain during a transitional period, was leaving for personal reasons. He said Mr. Fox has been commuting from Boston to New York during his tenure, and after over two years the commute has worn him down.
Mr. Dalziel, 47, was CFO of DoubleClick Inc. from 2001 to 2005 and worked at Prudential Insurance Company from 1986 to 2000.
In an SEC filing BISYS said Mr. Fox will receive a separation payment of $198,750 in addition to salary and other compensation.
The filing also indicated that William J. Tomko, an executive vice president, had left the company in June. When asked about the departure in an analyst's call, Mr. Fradin indicated that his departure resulted from the company's management realignment. He did not say whether Mr. Tomko left voluntarily.
On the financial side, Mr. Fradin said he expects to see single-digit growth in the insurance areas of the company, including the property-casualty business. BISYS is also a distributor of life products.
Mr. Fradin noted the company has given up volume-based contingent commissions, which have been at the center of controversy since New York Attorney General Eliot Spitzer sued Marsh & McLennan over kickbacks related to the fees. He said he expects the revenues lost, while not significant, would be replaced over time.
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