Rodman & Renshaw Swings to Loss

Rodman & Renshaw posted a loss of $1.6 million, or 5 cents per share, compared with earnings of $9.8 million, or 53 cents per share, during the same period the previous year.

Analysts polled by Thomson Financial, on average, forecast earnings of 5 cents per share for the quarter on revenue of $24.8 million.

Revenue fell 52 percent to $14.7 million during the fourth quarter.

Private placement, underwriting and advisory fees tumbled during the fourth quarter to $8.9 million from $20.6 million during the year-ago quarter. Gains on securities and principal transactions also fell sharply, declining to $1.6 million from $7.2 million the previous year.

Revenue fell sharply because some clients delayed financing transactions because of deterioration in the credit markets.

"In the fourth quarter, a number of our biotech and life science clients delayed expected end-of-year financing transactions given the volatility and dislocations in the capital markets," Michael Lacovara, the company's chief executive, said in a statement. "In addition, two large financings outside of life science were delayed."

For the full year, net income fell to $4.8 million, or 20 cents per share, from $16.5 million, or 90 cents per share, in 2006.