NDB warns of 1Q loss

National Discount Brokers Group, Inc.(NYSE: NDB) warned that it expects to report a loss for the upcoming quarter, reversing the the Street's projection for a profit of 9 cents per share.

Meanwhile, competitors Ameritrade (Nasdaq: AMTD) and E*Trade (Nasdaq: EGRP) have been gaining on recent upgrades.

NDB now expects to report revenue of $67 million and a net loss from continuing operations of between 6 and 9 cents per diluted share for the quarter ended August 31. First Call had expected the company to bring in a profit of 9 cents a share for its first quarter.

Although total revenues increased over the year ago fiscal quarter, revenues in the first quarter of fiscal 2001 were pulled down by adverse market conditions. Total revenues for the first quarter were up about 26 percent from the comparable quarter in the prior fiscal year. However, total pre-tax expenses were about $70 million, up 34 percent from the comparable quarter in the prior fiscal year.

The company said the increase in pre-tax expenses is due to an increase in staff size of about 35 percent, as well as increased salespersons' and traders' commissions due to increased revenues described above. Clearance and execution charges also increased alongside increased trading volume, the company said.

The company expects to report actual results for its first fiscal quarter on September 26 before 9:00 a.m. EDT.