By James Langton

(February 27 – 10:30 ET) – Heavy losses continue to dog Northern Financial Corp.

For the third quarter ended December 31, the company posted a loss of $2.15 million, compared with a loss of $2.59 million in the previous quarter, and $2.27 million in the third quarter of fiscal 2000. The basic net loss per share was 0.013¢, compared with 0.016¢ in the previous quarter and 0.015¢ in the fiscal third quarter of fiscal 2000.

Northern Financial also reports that, effective February 27, Nadir Desai, who was brought in to run the company, has resigned as a director. Desai resigned his executive post in December. John Turner, a partner in the law firm Fasken Martineau DuMoulin, has been appointed as a director in his place.

The firm’s loss exceeded its total revenue of $1.67 million before a non-cash writedown of $382,173 reduced net revenue to $1.3 million. Revenue is up 110% year over year. Operating cash flow deficit before changes in working capital was $1.47 million, down from $2.11 million in the second quarter. For January, the firm is reporting revenue of $604,000, and an operating cash flow deficit of $42,000.

Northern Financial has been getting support from consumers for all its spending. Its online brokerage subsidiary eNorthern was ranked as the second best online broker in Canada according to the Gomez survey in February.

Looking ahead, the firm says, “Notwithstanding the signs of an economic slowdown, the company has not seen demonstrable signs of effects on its business, but has taken certain cost saving measures over the past quarter to protect the company in the case of an economic downturn. These cost reduction measures include a small reduction and a complete re-evaluation of vendor arrangements.”

The company is also still trying to sell the sapphire mining claims and related assets in Montana, a holdover from its days as a junior miner before it became a brokerage firm.