Canaccord Capital Inc. today said quarterly profit slipped 2.3%. Net income for the fiscal third quarter ended Dec. 31, 2006 was $23.7 million, or 49¢ a share, down from $24.2 million, or a 52¢ share, the same quarter last year.

Revenue for the quarter was $178.3 million, up 12.4% from $158.7 million in the same quarter a year ago.

Excluding the consolidated U.S. operations, revenue for the quarter would have been $159.7 million, up 0.6% or $1.0 million and net income would have been $24.6 million, up 1.4% or $0.3 million from the same quarter last year.

Canaccord acquired its US operations through the purchase of Adams Harkness Financial Group, Inc. on Jan. 3, 2006.

“Canaccord’s solid Q3/07 financial results underscore the value of our strategy of diversification across key markets and sectors,” said Peter Brown, chairman and CEO, in a news release.

“We are confident that our focus on product mix, sector specialization and key geographic markets will allow us to excel in these areas, adding value for our clients and shareholders,” added Paul Reynolds, president.”

Expenses for the quarter were $144.7 million, up 17.8% or $21.9 million from $122.8 million

Return on equity was 27.6%, down from 41.0%

Canaccord also increased its quarterly dividend by 2¢ per share, or 25%, to 10¢ a share.