Fundtech Q3 earnings hit by Lehman-related charge

US financial technology vendor Fundtech says it will record a charge in the third quarter of up to $600,000 relating to the bankruptcy of Lehman Brothers.

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Fundtech Q3 earnings hit by Lehman-related charge

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In a statement the fintech vendor says its investment portfolio includes a $700,000 bond issued by Lehman Brothers.

Fundtech says it expects to record a one time charge of between $500,000 and $600,000 in the third quarter reflecting the estimated "permanent decline" in the value of the investment.

The negative impact on GAAP earnings per share for Q3, as well as for fiscal 2008, is three to four cents says Fundtech.

The vendor says it regards this charge as immaterial to its liquidity as its current balances of cash, short-term and long-term investments amount to approximately $48 million.

However, Fundtech isn't the only fintech company picking up the pieces after the Lehman bankruptcy. Outsourcing provider Broadridge - which counts both Barclays Bank and Lehman Brothers as customers - is also seeking to clarify its position. The vendor says it is in discussions with "both parties about their future processing needs".

Meanwhile plans by UK software group Misys to spin off its healthcare division have been thrown into jeopardy by the collapse of Lehman.

Misys' deal to sell the division to US-based Allscripts Healthcare Solutions depended on a $305 million credit package agreed with Lehman in March.

The UK group said last week that it has begun the process of identifying other funding alternatives and is in discussions with several debt providers with a view to ensuring sufficient funds are available at completion of the proposed merger.

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