U.S. Global income hit by credit crunch
U.S. Global Investors Inc. recorded a sharp drop in net income and revenue during its recently completed fiscal fourth quarter. The decline is due, in part, to the current credit crunch affecting the markets in the wake of the subprime mortgage crisis, says Frank Holmes, CEO and chief investment officer of U.S. Global (NASDAQ: GROW). “There has been tremendous volatility in the financial sector, and GROW’s stock price has been dragged down by the problems in the sector, which has seen massive writedowns in the past year,” Holmes says. “The negative sentiment for financials across the board is another example of markets not behaving in a rational manner.” For the quarter ended June 30, U.S. Global reported net income of $3.84 million, or 25 cents per diluted share, on revenue of $16.96 million. That compares to net income of $6.41 million, or 42 cents per diluted share, on revenue of $21.83 million during the same period last year pay day loan. For fiscal year 2008, U.S. Global recorded net income of $10.84 million, or 71 cents per diluted share, on revenue of $56.04 million. The company reported net income of $13.76 million, or 90 cents per diluted share, on revenue of $58.60 million in fiscal year 2007. The company had $5.44 billion in average assets under management in fiscal year 2008, up 12.2 percent from the previous year. U.S. Global is a San Antonio-based registered investment advisor that manages domestic and international funds that offer a range of investment options. It specializes in emerging markets and natural resources.