SEAMARK Asset Management Ltd. announced on Tuesday first quarter earnings of $0.09 per share; and, as previously announced, assets under management ended Q1 at $4.7 billion.

In comparison, earnings per share during the first quarter of 2006 were $0.29. The decline in earnings per share reflects the two non-recurring items, a decline in revenue and an increase in expenses related to compensation.

Revenue during Q1 was $4.1 million compared to $8.3 million for Q1 2006. The decline in revenue reflects the impact of the ClaringtonFunds Inc. revenue received during the first quarter of 2006 and a decline in the company’s average assets under management.

Included in revenue during the first quarter of 2007 were realized gains of $0.2 million on the sale of temporary investments, which contributed $0.01 to earnings per share. There were no such realized gains during the first quarter of 2006.

“During the quarter, two positive developments have better positioned us to begin to grow assets in the retail market,” said Stuart R. Raftus, president and CEO. “SEAMARK’s major wrap program clients completed their reviews of our operations, improving our ability to pursue new assets from these programs. In addition, SEAMARK was selected by RBC Capital Markets to provide investment management services to a new series of principal protected notes.”

“In the institutional market, winning new business to offset asset outflows remains challenging. To address this, management is focused on the fundamentals of our business, investment performance and client relationships, as well as on enhancing the long-term profitability of the company.”

Expenses, excluding the impact of the non-recurring expenses, were higher in the first quarter of 2007 compared to the first quarter of 2006, reflecting increased compensation costs partially offset by a reduction in costs in other areas.

Earnings before income taxes represented 39% of revenue for Q1 2007, down from 64% in Q1 2006. After including the impact of income taxes, net earnings as a percentage of revenue were 25% for Q1, compared to 39% for the first quarter 2006. These margin declines reflect the non-recurring items, the reduction in revenue and the increase in expenses described above.

Assets under management were $4.7 billion as of March 31, down from $5.2 billion at the beginning of the quarter and $5.9 billion a year ago.

SEAMARK also announced that the next regular quarterly dividend of $0.07 per share would be payable on May 31 to shareholders of record on May 15.