May 02, 2007 11:31 AM
Company Updates Outlook for 2007
NEW YORK--(BUSINESS WIRE)--May 2, 2007--eSpeed, Inc. (NASDAQ: ESPD), a leading developer of electronic marketplaces and related trading technology for the global capital markets, today reported results for the first quarter ended March 31, 2007.
First Quarter Results Summary
GAAP revenues were 3% lower than in the year-ago period. GAAP net income was $0.02 per diluted share in the first quarter of 2007 vs. $0.04 per diluted share in the first quarter of 2006. eSpeed's non-GAAP operating revenue increased 6% and the Company's non-GAAP net operating income per diluted share increased to $0.04 in the first quarter of 2007 from $0.03 in the prior year's first quarter.
1Q2007 1Q2007 1Q2006
Actual Outlook Actual
--------- ------------ ---------
GAAP Revenues $41.4 MM NA $42.6 MM
Non-GAAP Operating Revenues $41.1 MM > $40 MM $38.7 MM
GAAP Net Income Per Diluted Share $0.02 NA $0.04
Non-GAAP Net Operating Income Per
Diluted Share $0.04 $0.03-$0.04 $0.03
|
"eSpeed's fundamental strength was underscored by the year-over-year gains in our U.S. treasury business and by increased screen-assisted revenue as additional BGC desks entered our hybrid pipeline," said Howard W. Lutnick, eSpeed's Chairman, Chief Executive Officer, and President. "In addition, eSpeed's futures products made solid gains. We remain optimistic about our growth prospects for 2008 and beyond based on strong expected returns on the investments the Company has made in our portfolio of new products."
First Quarter Earnings
eSpeed reported net income of $0.9 million, or $0.02 per diluted share, for the first quarter of 2007 based on Generally Accepted Accounting Principles ("GAAP"). To reflect earnings generated from the Company's operations, eSpeed also reported non-GAAP net operating income of $2.0 million, or $0.04 per diluted share. The difference between non-GAAP net operating income and GAAP net income for the quarter occurred primarily due to $0.8 million in patent litigation costs and $0.4 million in losses from eSpeed's Equities Direct Access business, which is set to become a separate company called Aqua in the second quarter and in which eSpeed will have an equity stake. Both of these differences were net of tax.
For the first quarter of 2006, eSpeed reported GAAP net income of $2.0 million, or $0.04 per diluted share and non-GAAP net operating income of $1.4 million, or $0.03 per diluted share. The difference between non-GAAP net operating income and GAAP net income for the quarter was primarily due to a gain from insurance proceeds of $2.1 million and a settlement of a tax-related matter of $0.1 million, partially offset by $0.7 million in accelerated amortization of capitalized software, $0.4 million in patent litigation costs, and $0.4 million in expenses relating to the relocation of the Company's London office, all net of tax.
First Quarter Revenues
eSpeed reported GAAP revenues of $41.4 million and non-GAAP operating revenues of $41.1 million for the first quarter of 2007. The difference between GAAP and non-GAAP revenues for the first quarter of 2007 reflected eSpeed Equities Direct Access revenues of $0.3 million.
In comparison, eSpeed reported GAAP revenues of $42.6 million and non-GAAP operating revenues of $38.7 million for the first quarter of 2006. The difference between GAAP and non-GAAP revenues for the first quarter of 2006 was due to a $3.5 million gain from insurance proceeds and $0.4 million in interest income related to the settlement of a tax-related matter.
Fully electronic revenues were $17.9 million in the first quarter of 2007 compared with $16.7 million for the first quarter of 2006. Revenues from Software Solutions in the first quarter of 2007 were $12.3 million versus $11.3 million in the year ago period. Voice- assisted and screen-assisted revenues totaled $8.7 million in the first quarter of 2007 compared with $8.7 million in the first quarter of 2006. Non-GAAP pre-tax operating margin was 7.8 percent in the first quarter of 2007.
The year over year decrease in quarterly GAAP revenues and net income were due primarily to the aforementioned gain from insurance proceeds in the year-ago quarter partially offset by a year-over-year increase in total transaction revenues and from Software Solutions.
See "Non-GAAP Financial Measures" below for a detailed description of the Company's non-GAAP financial measures.
Cash Flow & Cash
The Company generated cash flow from operations of $13.7 million during the first quarter of 2007, compared with $5.1 million during the first quarter of 2006.
The Company also reports free cash flow, which it defines as cash from operations less net cash used in investing activities, including capital expenditures. eSpeed's free cash flow was $5.0 million for the first quarter of 2007, compared with ($1.5) million in the prior year period.
Excluding related party receivables and payables, free cash flow was $2.6 million for the first quarter of 2007, compared with $4.9 million for the first quarter of 2006.
Year-over-year improvements in cash flow from operations were due primarily to higher receivables from related parties and other assets, partially offset by an increase in payables to related parties and decreased depreciation and amortization.
As of March 31, 2007, eSpeed's cash and cash equivalents were approximately $192.6 million.
First Quarter Volume and Transactions on the eSpeed System
Fully electronic volume on the eSpeed system, excluding new products, was $11.8 trillion for the first quarter of 2007, up 31.8 percent from $9.0 trillion in the first quarter of 2006. eSpeed's combined voice-assisted and screen-assisted volume for the first quarter of 2007 was $16.4 trillion, an increase of 22.3 percent from $13.4 trillion in the first quarter of 2006. Fully electronic volume on the eSpeed system for new products, which the Company defines as foreign exchange, interest rate swaps, futures, credit default swaps, and repurchase agreements, was $1.4 trillion for the first quarter of 2007, up 169.9 percent from the $524 billion reported in the first quarter of 2006.
Outlook
For the second quarter of 2007, eSpeed expects to generate non-GAAP operating revenues in excess of $36 million and expects non-GAAP net operating income to be approximately $0.00 per diluted share.
For the full year 2007, eSpeed now expects to generate non-GAAP operating revenues of approximately $153 million, compared with the Company's previous outlook of $152 million. eSpeed expects non-GAAP operating expenses to be in the range of $148 million to $149 million, versus the previously expected range of $146 million to $148 million. eSpeed expects full year 2007 non-GAAP net operating income to be in the range of $0.05 to $0.06 compared to the prior outlook of $0.05 to $0.07 per diluted share.
eSpeed expects lower revenue and non-GAAP net operating income for the remainder of 2007 primarily due to the expiration of the Wagner patent on February 20, 2007. eSpeed recognized $3.1 million in revenue and $1.5 million in non-GAAP net operating income related to the patent in the first quarter of 2007.
The Company will host a conference call on Thursday, May 3, 2007 at 8:30 a.m. EDT, to discuss the above results. To listen to the call via audio webcast, please visit www.espeed.com. Please note: listeners must have a Real Media or Windows Media plug in and headphones or speakers to listen to the webcast.
Non-GAAP Financial Measures
To supplement eSpeed's consolidated financial statements presented in accordance with GAAP and to better reflect the Company's quarter-over-quarter and comparative year-over-year operating performance, eSpeed uses non-GAAP financial measures of revenues, net income and earnings per share, which are adjusted to exclude certain expenses and gains. In addition, the Company provides a computation of free cash flow. These non-GAAP financial measurements do not replace the presentation of eSpeed's GAAP financial results but are provided to improve overall understanding of the Company's current financial performance and its prospects for the future. Specifically, eSpeed believes the non-GAAP financial results provide useful information to both management and investors regarding certain additional financial and business trends relating to the Company's financial condition and results from operations. In addition, eSpeed's management uses these measures for reviewing the Company's financial results and evaluating eSpeed's financial performance.
For the first quarter of 2007, the difference between GAAP net income and non-GAAP net operating income was approximately $1.2 million, net of tax, while the difference between GAAP revenues and non-GAAP operating revenues was $0.3 million. eSpeed considers "non-GAAP net operating income" to be after-tax income generated from the Company's continuing operations excluding certain non-recurring or non-core items such as, but not limited to, asset impairments, litigation judgments, costs or settlements, restructuring charges, costs related to potential acquisitions, charitable contributions, insurance proceeds, business partner securities, gains or losses on investments and similar events. eSpeed considers "non-GAAP operating revenues" to be net revenue excluding these same items.
The amortization of patent costs and associated licensing fees (including those made in settlement of litigation) from such patents are generally treated as operating items. Material judgments or settlement amounts paid or received and impairments to all or a portion of such assets are generally treated as non-operating items. Management does not provide guidance of GAAP net income because certain items identified as excluded from non-GAAP net operating income are difficult to forecast.
About eSpeed, Inc.
eSpeed, Inc. (NASDAQ: ESPD) is a leader in developing and deploying electronic marketplaces and related trading technology that offers traders access to the most liquid, efficient and neutral financial markets in the world. eSpeed operates multiple buyer, multiple seller real-time electronic marketplaces for the global capital markets, including the world's largest government bond markets and other fixed income and foreign exchange marketplaces. eSpeed's suite of marketplace tools provides end-to-end transaction solutions for the purchase and sale of financial products over eSpeed's global private network or via the Internet. eSpeed's neutral platform, reliable network, straight-through processing and superior products make it a trusted source for electronic trading at the world's largest fixed income and foreign exchange trading firms and major exchanges. For more information, please visit www.espeed.com.
Discussion of Forward-Looking Statements by eSpeed, Inc.
The information in this release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends" and similar expressions are intended to identify forward-looking statements.
Our actual results and the outcome and timing of certain events may differ significantly from the expectations discussed in the forward-looking statements. Factors that might cause or contribute to such a discrepancy include, but are not limited to, our relationship with Cantor and its affiliates, the costs and expenses of developing, maintaining and protecting our intellectual property, including judgments or settlements paid or received and their related costs, the possibility of future losses and negative cash flow from operations, the effect of overall market conditions, including trading volume and volatility, our pricing strategy and that of our competitors, our ability to develop new products and services, to enter new markets, to secure and maintain market share, to enter into marketing and strategic alliances, and other transactions, including acquisitions, reorganizations, partnering opportunities, and joint ventures, to hire new personnel, to expand the use of our technology, for both integrated hybrid voice-assisted and fully electronic trading, to induce clients to use our marketplaces and services and to effectively manage any growth we achieve, and other factors that are discussed under "Risk Factors" in eSpeed's Annual Report on Form 10-K filed with the Securities and Exchange Commission.
We believe that all forward-looking statements are based upon reasonable assumptions when made. However, we caution that it is impossible to predict actual results or outcomes or the effects of risks, uncertainties or other factors on anticipated results or outcomes and that accordingly you should not place undue reliance on these statements. Forward-looking statements speak only as of the date when made and we undertake no obligation to update these statements in light of subsequent events or developments.
eSpeed, Inc and Subsidiaries
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except per share data)
March 31, December 31,
2007 2006
-----------------------
(Unaudited)
Assets
Cash and cash equivalents $ 5,333 $ 21,838
Reverse repurchase agreements with related
parties 187,231 166,009
-----------------------
Total cash and cash equivalents 192,564 187,847
Marketable securities 2,209 -
Fixed assets, net 57,483 57,207
Investments 7,802 7,780
Goodwill 12,184 12,184
Other intangible assets, net 6,203 6,949
Receivable from related parties 7,087 7,145
Other assets 12,286 13,725
-----------------------
Total assets $ 297,818 $ 292,837
=======================
Liabilities and Stockholders' Equity
Current liabilities:
Payable to related parties 10,105 7,751
Accounts payable and accrued liabilities 26,890 25,836
-----------------------
Total current liabilities 36,995 33,587
Deferred income 3,971 4,075
-----------------------
Total liabilities 40,966 37,662
-----------------------
Stockholders' equity:
Preferred stock, par value $0.01 per share;
50,000 shares authorized, none outstanding at
March 31, 2007 and December 31, 2006 - -
Class A common stock, par value $.01 per
share; 200,000 shares authorized; 36,441 and
36,407 shares issued and outstanding at March
31, 2007 and December 31, 2006, respectively 364 364
Class B common stock, par value $.01 per
share; 100,000 shares authorized; 20,498
shares outstanding at March 31, 2007 and
December 31, 2006, convertible to Class A
common stock 205 205
Additional paid-in capital 300,732 299,683
Treasury stock, at cost; 6,502 shares of Class
A common stock at March 31, 2007 and December
31, 2006 (62,597) (62,597)
Retained earnings 18,168 17,520
Accumulated other comprehensive loss (20) -
-----------------------
Total stockholders' equity 256,852 255,175
-----------------------
Total liabilities and stockholders' equity $ 297,818 $ 292,837
=======================
eSpeed, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME IN ACCORDANCE WITH GAAP (unaudited)
(in thousands, except per share data)
Three Months Ended
--------------------
March 31, March 31,
2007 2006
---------- ---------
Revenues:
Transaction revenues
Fully electronic transactions with related
parties $ 16,440 $ 15,681
Fully electronic transactions with unrelated
parties 1,506 1,038
---------- ---------
Total fully electronic transactions 17,946 16,719
Voice-assisted brokerage transactions with
related parties 6,974 7,255
Screen-assisted open outcry transactions
with related parties 1,732 1,426
---------- ---------
Total transaction revenues 26,652 25,400
---------- ---------
Software Solutions fees from related parties 8,725 7,491
Software Solutions and licensing fees from
unrelated parties 3,564 3,799
Insurance recovery from related parties - 3,500
Interest income 2,473 2,362
---------- ---------
Total revenues 41,414 42,552
---------- ---------
Expenses:
Compensation and employee benefits 14,166 13,858
Amortization of software development costs and
other intangible assets 5,334 6,890
Other occupancy and equipment 9,377 8,633
Administrative fees to related parties 3,521 3,427
Professional and consulting fees 2,895 1,910
Communications and client networks 2,103 2,027
Marketing 226 332
Amortization of non-employee securities - 19
Other expenses 2,439 2,045
---------- ---------
Total operating expenses 40,061 39,141
---------- ---------
---------- ---------
Income before income taxes 1,353 3,411
---------- ---------
Provision for income taxes 496 1,391
---------- ---------
Net income $ 857 $ 2,020
========== =========
Per share data:
Basic earnings per share $ 0.02 $ 0.04
========== =========
Diluted earnings per share $ 0.02 $ 0.04
========== =========
Basic weighted average shares of common stock
outstanding 50,423 50,077
========== =========
Diluted weighted average shares of common stock
outstanding 51,441 51,137
========== =========
eSpeed, Inc. and Subsidiaries
NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(in thousands, except per share data)
Three Months Ended
-------------------
March 31, March 31,
2007 2006
--------- ---------
Revenues:
Transaction revenues
Fully electronic transactions with related
parties $ 16,440 $ 15,681
Fully electronic transactions with unrelated
parties 1,506 1,038
--------- ---------
Total fully electronic transactions 17,946 16,719
Voice-assisted brokerage transactions with
related parties 6,974 7,255
Screen-assisted open outcry transactions
with related parties 1,732 1,426
--------- ---------
Total transaction revenues 26,652 25,400
--------- ---------
Software Solutions fees from related parties 8,725 7,491
Software Solutions and licensing fees from
unrelated parties 3,283 3,799
Interest income 2,473 1,963
--------- ---------
Total non-GAAP revenues 41,133 38,653
--------- ---------
Expenses:
Compensation and employee benefits 13,964 13,634
Amortization of software development costs and
other intangible assets 5,227 5,727
Other occupancy and equipment 9,009 7,989
Administrative fees to related parties 3,383 3,427
Professional and consulting fees 1,617 1,163
Communications and client networks 2,081 2,027
Marketing 226 332
Other expenses 2,408 2,046
--------- ---------
Total non-GAAP operating expenses 37,915 36,345
--------- ---------
--------- ---------
Non-GAAP income before income taxes 3,218 2,308
--------- ---------
Non-GAAP provision for income taxes 1,181 941
--------- ---------
Non-GAAP net operating income 2,037 1,367
========= =========
Non-operating (loss) income:
Amortization of non-employee securities, net of
tax - (11)
Litigation costs, net of tax (808) (442)
Loss from eSpeed Equities, net of tax (372) -
Accelerated depreciation, net of tax - (689)
Office relocation cost, net of tax - (382)
Tax settlement, net of tax - 104
Insurance recovery from related parties, net of
tax - 2,073
--------- ---------
Total non-operating (loss) income (1,180) 653
--------- ---------
Net income $ 857 $ 2,020
========= =========
Per share data:
Basic non-GAAP income before income taxes per
share $ 0.06 $ 0.05
Basic non-GAAP provision for income taxes per
share $ 0.02 $ 0.02
--------- ---------
Basic non-GAAP net operating income per share $ 0.04 $ 0.03
Basic non-operating (loss) income per share $ (0.02) $ 0.01
--------- ---------
Basic GAAP earnings per share $ 0.02 $ 0.04
========= =========
Diluted non-GAAP income before income taxes per
share $ 0.06 $ 0.05
Diluted non-GAAP provision for income taxes per
share $ 0.02 $ 0.02
--------- ---------
Diluted non-GAAP net operating income per share $ 0.04 $ 0.03
Diluted non-operating (loss) income per share $ (0.02) $ 0.01
--------- ---------
Diluted GAAP earnings per share $ 0.02 $ 0.04
========= =========
Basic weighted average shares of common stock
outstanding 50,423 50,077
========= =========
Diluted weighted average shares of common stock
outstanding 51,441 51,137
========= =========
Additional data:
Non-GAAP pre-tax operating margin 7.8% 6.0%
========= =========
eSpeed, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in thousands)
Three Months Three Months
Ended Ended
March 31, March 31,
------------ ------------
2007 2006
------------ ------------
Cash flows from operating activities:
Net income $ 857 $ 2,020
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 8,232 9,845
Gain on insurance recovery from related
parties - (3,500)
Equity in net income of unconsolidated
investments (22) (22)
Deferred income tax expense 352 1,105
Stock-based compensation 794 573
Tax benefit from stock-based
compensation 22 69
Excess tax benefit from stock-based
compensation (14) (47)
Changes in operating assets and
liabilities:
Receivable from related parties 58 (608)
Other assets 193 (3,111)
Payable to related parties 2,355 (2,264)
Accounts payable and accrued expenses 1,002 1,099
Deferred income (104) (104)
------------ ------------
Net cash provided by operating
activities 13,725 5,055
------------ ------------
Cash flows used in investing activities:
Purchase of fixed assets (1,205) (2,105)
Purchase of marketable securities (2,229) -
Capitalization of software development
costs (6,197) (4,185)
Capitalization of patent defense and
registration costs (435) (241)
Decrease in restricted cash 1,322 -
------------ ------------
Net cash used in investing activities (8,744) (6,531)
------------ ------------
Cash flows (used in) provided by financing
activities:
Repurchase of Class A common stock (373) -
Proceeds from exercises of stock
options 95 241
Excess tax benefit from stock-based
compensation 14 47
------------ ------------
Net cash (used in) provided by
financing activities (264) 288
------------ ------------
Net increase (decrease) in cash and cash
equivalents 4,717 (1,188)
------------ ------------
Cash and cash equivalents at beginning of
period 21,838 37,070
Reverse repurchase agreements with related
parties at beginning of period 166,009 141,365
------------ ------------
Total cash and cash equivalents at
beginning of period 187,847 178,435
------------ ------------
Cash and cash equivalents at end of period 5,333 12,195
Reverse repurchase agreements with related
parties at end of period 187,231 165,052
------------ ------------
Total cash and cash equivalents at end of
period $ 192,564 $ 177,247
============ ============
Supplemental cash information:
Cash paid for income taxes $ 35 $ -
Deemed dividend to Cantor - 1,500
Contribution of license from Cantor - 1,500
eSpeed, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS OF FREE CASH FLOWS (unaudited)
(in thousands)
Three Months Ended
March 31,
-------------------
2007 2006
--------- ---------
Non-GAAP income before income taxes $ 3,218 $ 2,308
Depreciation and amortization 8,232 9,845
Other non-cash and non-operating items (1,107) 1,607
--------- ---------
Non-GAAP income before income taxes adjusted for
depreciation, amortization and other 10,343 13,760
--------- ---------
Provision for income taxes on non-GAAP operating
income (1,181) (941)
Income tax benefit (provision) on non-operating
(loss) income 685 (450)
Deferred income tax expense 352 1,105
Tax benefit from stock-based compensation 22 69
Income taxes paid 35 -
--------- ---------
Increase in current income tax payable (87) (217)
Changes in related party receivable and payable,
net 2,413 (6,372)
Changes in other operating assets and liabilities,
net 1,056 (2,116)
--------- ---------
Net cash provided by operating activities 13,725 5,055
--------- ---------
Purchase of fixed assets (1,205) (2,105)
Purchase of investments (2,229) -
Capitalization of software development costs (6,197) (4,185)
Capitalization of patent defense and registration
costs (435) (241)
Decrease in restricted cash 1,322 -
--------- ---------
Free cash flows 4,981 (1,476)
--------- ---------
Related party receivable and payable, net (2,413) 6,372
--------- ---------
Free cash flows, net of related party
activity $ 2,568 $ 4,896
========= =========
eSpeed, Inc. and Subsidiaries
RECONCILIATION of NON-GAAP FINANCIAL MEASURES TO GAAP (unaudited)
(in thousands)
Three Months
Ended
March 31,
-----------------
2007 2006
-------- --------
Total non-GAAP revenues $41,133 38,653
Insurance recovery (a) - 3,500
Tax settlement (b) - 399
eSpeed Equities revenues (c) 281 -
-------- --------
Total GAAP revenues $41,414 $42,552
-------- --------
Total non-GAAP operating expenses $37,915 $36,345
Amortization of business partner and non-employee
securities (d) - 19
Litigation costs (e) 1,278 747
Legal settlement (f) - 224
Accelerated amortization (g) - 1,162
Office relocation costs (h) - 644
eSpeed Equities expenses (i) 868 -
-------- --------
Total GAAP operating expenses $40,061 $39,141
-------- --------
Non-GAAP income before income taxes $ 3,218 $ 2,308
Sum of reconciling items = (a) + (b) + (c) - (d) -
(e) - (f) - (g) - (h) - (i) (1,865) 1,103
-------- --------
GAAP income before income taxes $ 1,353 $ 3,411
-------- --------
Non-GAAP provision for income taxes $ 1,181 $ 941
Income tax expense on non-operating income (j) (685) 450
-------- --------
GAAP provision for income taxes $ 496 $ 1,391
-------- --------
Non-GAAP net operating income $ 2,037 $ 1,367
Sum of reconciling items = (a) + (b) + (c) - (d) -
(e) - (f) - (g) - (h) - (i) - (j) (1,180) 653
-------- --------
GAAP net income $ 857 $ 2,020
======== ========
eSpeed, Inc. and Subsidiaries
Quarterly Market Activity Report
The following table provides certain volume and transaction count
information on the eSpeed system for the periods indicated.
------------------------------------------------
1Q06 2Q06 3Q06 4Q06
------------------------------------------------
Volume (in billions)
--------------------
Fully Electronic
Volume - Excluding
New Products 8,957 10,235 9,381 9,813
Fully Electronic
Volume - New
Products* 524 744 1,179 1,335
------------------------------------------------
Total Fully
Electronic
Volume 9,481 10,979 10,560 11,148
Voice-Assisted
Volume 8,093 8,618 8,217 7,933
Screen-Assisted
Volume 5,295 5,583 5,898 6,111
------------------------------------------------
Total
Voice/Screen-
Assisted Volume 13,388 14,201 14,115 14,044
------------------------------------------------
Total Volume 22,869 25,180 24,675 25,192
================================================
Transaction Count
--------------------
Fully Electronic
Transactions -
Excluding New
Products 1,971,347 2,035,458 1,687,779 1,764,930
Fully Electronic
Transactions - New
Products* 131,700 138,421 140,539 142,239
------------------------------------------------
Total Fully
Electronic
Transactions 2,103,047 2,173,879 1,828,318 1,907,169
Voice-Assisted
Transactions 228,124 202,600 183,646 177,789
Screen-Assisted
Transactions 70,698 68,768 66,451 62,977
------------------------------------------------
Total
Voice/Screen-
Assisted Volume 298,822 271,368 250,097 240,766
------------------------------------------------
Total
Transactions 2,401,869 2,445,247 2,078,415 2,147,935
================================================
Trading Days 62 63 63 62
% Change % Change
---------------------------------------
1Q07 1Q07 vs 4Q06 1Q07 vs 1Q06
-------------
Volume (in billions)
--------------------
Fully Electronic
Volume - Excluding
New Products 11,809 20.3% 31.8%
Fully Electronic
Volume - New
Products* 1,415 6.0% 169.9%
---------------------------------------
Total Fully
Electronic
Volume 13,224 18.6% 39.5%
Voice-Assisted
Volume 8,884 12.0% 9.8%
Screen-Assisted
Volume 7,486 22.5% 41.4%
---------------------------------------
Total
Voice/Screen-
Assisted Volume 16,370 16.6% 22.3%
---------------------------------------
Total Volume 29,594 17.5% 29.4%
=======================================
Transaction Count
--------------------
Fully Electronic
Transactions -
Excluding New
Products 2,062,341 16.9% 4.6%
Fully Electronic
Transactions - New
Products* 144,378 1.5% 9.6%
---------------------------------------
Total Fully
Electronic
Transactions 2,206,719 15.7% 4.9%
Voice-Assisted
Transactions 201,250 13.2% (11.8%)
Screen-Assisted
Transactions 92,496 46.9% 30.8%
---------------------------------------
Total
Voice/Screen-
Assisted Volume 293,746 22.0% (1.7%)
---------------------------------------
Total
Transactions 2,500,465 16.4% 4.1%
=======================================
Trading Days 62
* New Products defined as Foreign Exchange, Interest Rate Swaps, Repos, Futures, and Credit Default Swaps. CBOT Futures volume calculated based on per contract notional value of $200,000 for the two year contract and $100,000 for all others. Global Interest Rate
Futures Volume (1)
CBOT - US Treasury
Contracts 127,606,543 128,443,758 126,285,125 129,828,448
CME - Euro $
Contracts 117,284,097 127,350,219 127,101,116 130,341,959
EUREX - Bund
Contracts 85,217,459 88,078,646 72,591,730 74,001,534
Fed UST Primary
Dealer Volume (in
billions) (2)
UST Volume 34,810 33,688 32,171 30,742
Average Daily UST
Volume 561 535 511 496
NYSE - Volume (shares
traded) - in
millions (3) 108,447 121,582 108,825 114,434
Transaction Value
- in millions 4,072,426 4,627,787 3,941,583 4,316,756
NASDAQ - Volume
(shares traded) - in
millions (4) 128,566 134,155 116,510 121,477
Transaction Value
- in millions 3,070,980 3,031,230 2,587,538 2,945,401
Global Interest Rate
Futures Volume (1)
CBOT - US Treasury
Contracts 161,232,523 24.2% 26.4%
CME - Euro $
Contracts 152,724,717 17.2% 30.2%
EUREX - Bund
Contracts 88,987,126 20.3% 4.4%
Fed UST Primary
Dealer Volume (in
billions) (2)
UST Volume 34,437 12.0% (1.1%)
Average Daily UST
Volume 555 12.0% (1.1%)
NYSE - Volume (shares
traded) - in
millions (3) 123,765 8.2% 14.1%
Transaction Value
- in millions 4,943,056 14.5% 21.4%
NASDAQ - Volume
(shares traded) - in
millions (4) 131,410 8.2% 2.2%
Transaction Value
- in millions 3,300,788 12.1% 7.5%
Sources:(1) Futures Industry Association - Monthly Volume Report -
(www.cbot.com, www.cme.com, www.eurexchange.com)
(2) www.ny.frb.org/pihome/statistics/dealer - Federal Reserve
Bank
(3) NYSE - www.nyse.com
(4) NASDAQ - www.marketdata.nasdaq.com
|
Trading Days
------------------------
2007
------------------------
Q1 Q2 Q3 Q4
------------------------
62 64 63 62
2006
------------------------
Q1 Q2 Q3 Q4
------------------------
62 63 63 62
|
CONTACT: eSpeed, Inc.
Media:
Robert Hubbell, 212-294-7820
rhubbell@espeed.com
or
Investors:
Jason McGruder, 212-829-4988
jmcgruder@espeed.com
or
Gavin Anderson & Company
Tristan B. Peniston-Bird, 212-515-1933
tpeniston-bird@gavinanderson.com
SOURCE: eSpeed, Inc.
