Boutique-scaled auction house Phillips de Pury and Company, newly purchased by Russian luxury goods giant Mercury Group, capped this week of contemporary auction sales with an anemic though par-for-the-current-course result of $9,608,700. But while the sum is small compared to those of its uptown rivals, Phillips could take solace in the fact that it won’t be paying out any guarantees.

That tally compared to pre-sale estimates of $23–32.1 million for the 51 lots offered — 21 did not sell, translating to 41 percent unsold by lot and 51 percent unsold by value.

Three artist records were set, but only one work, the cover lot, Donald Judds classic stack Untitled (77/23-Bernstein) from 1977 (est. $4–6 million), went over a million dollars, selling to a telephone bidder for $3,218,500.

One of two works that managed to exceed the $500,000 mark, Anish Kapoor's stainless steel wall relief Untitled (Mirror) from 2003 (est. ($500–700,000) sold to a telephone bidder for $782,500. London’s Lisson Gallery was thpe underbidder.

As is typical of Phillips de Pury sales, the Chelsea space was crammed with a roving crowd of networking art world types, tonight cheerfully steeled for more bad news. The evening started with the sobering tiding that five high-profile lots had been withdrawn at the 11th hour, including Richard Princes Untitled (Tire Planter) from 1999 (est. $120–180,000) and John Currins Standing Nude from 1993 (est. $500–700,000), no doubt due to seller heebie-jeebies.

There was no lack of real-deal players in the audience, however, from Chicago’s Stefan Edlis to the Miami-based Rubells and Zurich über-dealer Doris Ammann.

“It was the same as the other two auctions,” quipped Edlis as he exited the salesroom after the 50-minute auction. “Everything was 40 percent off, just like at Barney’s.”

That metaphor seemed apropos for the evening, as Richard Princes Untitled (Protest Painting) from 1994 (est. $180–220,000) sold for $134,500, and Mark Grotjahn's abstract oil on linen Untitled (Orange Butterfly) from 2002 (est. $450–650,000) sold to a telephone bidder for $458,500. The Grotjahn was the fifth most expensive lot of the evening.

Few works came close to their pre-sale high estimates, and of those, the prices were all under six figures, such as Matthew Barneys gelatin silver print in artist’s frame, Cremaster 3: Imperial Demolition from 2002 (est. $50–70,000), which sold for $86,500 to New York dealer Christophe van de Weghe, who just opened a new space at 1018 Madison.

“I think it was a good price,” said van de Weghe after the sale, “and I’m happy to have it for inventory. Phillips had a hard time with the expensive lots, but otherwise they sold works that were at the correct price.”

On the casualty front, Damien Hirsts mural-scaled and oh-so-decorative Beautiful Artemis Thor Neptune Odin Delusional Sapphic Inspirational Hypnosis Painting from 2007 (est. $3–4 million) died at $1.8 million. You might wonder if it would have fared better at Sotheby’s Hirstiana sale in London back in September, when the art world still believed it was immune to the global economic shakedown.

Phillips has largely dropped out of the guarantee game; only one of the 51 lots offered had a financial guarantee, and that was a relatively cheap though exuberant work, Kendell Geerss The Fall, in colored neon lights on brushed steel from 2005 (est. $60–80,000), which sold for $56,250.

Phillips is best known for championing younger, lesser-known artists, a game plan that was partially successful for artists such as Terence Koh and his twelve-part bronze with black patina sculpture, The Road to the Winterland of My Discontent, I Know Not Where I Lead from 2007 (est. $80–120,000), which sold to New York collector and philanthropist Henry Buhl for $122,500.

“I think everything is shaking out, and we’re changing along with it,” said L.A. dealer Blair Taylor of Peres Projects, who underbid the Koh and chased John McCrackens petite-scaled polyester resin and fiberglass on wood Bit from 2002 (est.$30–50,000), which went to New York dealer David Zwirner for $43,750.

Though the numbers seem tiny when compared to the lots at giants Christie’s and Sotheby’s evening sales, auctioneer and chairman Simon de Pury made the significant point that, “We certainly were the only auction house this week to make any money.”

De Pury was referring to the heavily guaranteed kit at his uptown rivals, which both lost millions on their poorly timed market bets.

“In hindsight,” said Phillips’s contemporary head Michael McGinnis, “not giving guarantees was the right strategy in this economy.” Speaking to future sales, McGinnis said, “We need to tighten volume and get tough on lowering estimates and reserves,” which he pegs at a jaw-dropping 40 to 50 percent of current estimates.

Those sobering comments elicited just after the sale were not quite in earshot of Leonid Friedland, the Russian CEO of Mercury Group, who stood near the auctioneer’s rostrum, chatting on his cell phone. When approached by this reporter, the casually attired fashion mogul, outfitted in a dark sport jacket, jeans, and sneakers, pleasantly demurred from making any comment and pointed to de Pury, saying in Russian-accented English, “Thank you very much.”

Even with the dismal statistics, the crowd applauded at the end of the auction, seemingly relieved that the market was fighting to find its new level.

Judd Tully is Editor at Large of Art+Auction.