SAN DIEGO – CUSO Financial Services got off to a slow start this year, but after posting a first quarter loss the broker-dealer and investment services advisor which operates exclusively for credit unions experienced two consecutive quarters of profitability and revenue growth. CFS is projecting more of the same for the fourth quarter. After overcoming its first quarter loss of $366,277, CFS expects to break even for 2001. The company posted second and third quarter profits of $43,821 and $128,954, respectively. CFS President Valorie Seyfert noted that this is the first year the company will be profitable. She said the company is "on schedule" to be profitable for the year. CFS is projecting $22 million in revenue this year (fees and commission dollars) and nearly $500 million in invested dollars. It estimates it currently has more than $2 billion in assets under management. Seyfort attributes CFS' strong showing the last two quarters and its expected strong year-end finish to the new products, increased credit union memberships and the expansion of its programs, coupled with a significant decrease in CFS' operating expenses. Among the new products and services CFS has added are retirement planning services, institutional trading for credit unions and a new service-Member View-that allows full-service clients to view all of their assets, no matter where they're held, online and in one consolidated view. CFS also recently implemented a system that allows clients to view this information through their wireless-enabled cell phones or personal digital assistants (PDAs). CFS also added more than 20 credit unions to its list of credit union users-CFS has more than 60 credit union users, including 23 of the top 100 CUs in the U.S.-and sold its final six limited partnership units in Phase II, which increases excess capital to approximately $3 million. The reserves will be used to develop and enhance CFS' existing technology and systems for improved efficiencies and lower costs," said Seyfort. Seyfort said she does not expect CFS to offer another phase of partnership units in the near future since it currently has no immediate need for additional capital. [email protected]