LPS Posts Large Decline in 2Q Earnings

According to a report in National Mortgage News,

Mortgage technology and service provider Lender Processing Services earned $21.4 million in the second quarter, a 73% decline from the same period a year earlier, citing restructuring charges and lower revenue.

In a statement LPS said “in light of current market conditions” the firm is evaluating its cost structure and “potentially underperforming assets.”

The Jacksonville, Fla.-based firm booked a pre-tax restructuring charge of $7.9 million during the quarter primarily due to continued personnel reductions. It also recognized a $31.8 million pre-tax asset impairment charge tied to the writedown of investments it is evaluating for sale or wind down.

Although its earnings fell by 73%, revenue declined by just 13% to $517.5 million.

"LPS continues to perform well despite very challenging conditions in the default and origination markets, as well as an ongoing difficult macro-economic environment,” said company CEO Lee A. Kennedy. “LPS, with its strong market presence and unique set of end-to-end solutions for the mortgage and real estate marketplace, remains well-positioned for the years ahead.”

Still, LPS’s second-quarter profit beat market expectations helped by lower cost of revenue. The firm manages more than half of U.S. mortgage foreclosures, but faces various legal and regulatory challenges tied to its alleged role in wrongful foreclosure practices.


Read more visit - http://www.nationalmortgagenews.com/dailybriefinghttp://www.nationalmortgagenews.com/dailybriefing/2010_396/lps-posts-large-decline-2q-earnings-/2010_396/lps-posts-large-decline-2q-earnings-