0000950136-04-003733 8-K 3 20041104 2.02 9.01 20041105 20041104 ESPEED INC 0001094831 7389 134063515 DE 1231 8-K 34 000-28191 041120631 135 E. 57TH STREET 135 E. 57TH STREET NEW YORK NY 10022 2129385000 135 E. 57TH STREET 135 E. 57TH STREET NEW YORK NY 10022 8-K 1 file001.htm FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Date of Report (Date of earliest event reported) November 4, 2004 [[Image Removed]] eSpeed, Inc. (Exact name of registrant as specified in its charter) [[Image Removed]] Delaware [[Image Removed]] 0-28191 [[Image Removed]] 13-4063515 (State of other jurisdiction [[Image Removed]] (Commission [[Image Removed]] (IRS Employer of incorporation) File Number) Identification No.) [[Image Removed]] 135 East 57th Street, New York, NY 10022 (Address of principal executive offices) [[Image Removed]] Registrant's telephone number, including area code 212-938-5000 [[Image Removed]] N/A (Former name or former address, if changed since last report.) [[Image Removed]] Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [[Image Removed]] [[Image Removed]] [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [[Image Removed]] [[Image Removed]] [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [[Image Removed]] [[Image Removed]] [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [[Image Removed]] [[Image Removed]] [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) -------------------------------------------------------------------------------- ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On November 4, 2004, eSpeed, Inc. (the "Registrant") issued a press release announcing its preliminary operating statistics for the quarter ended September 30, 2004. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information in this Current Report on Form 8-K and the Exhibit attached to this Current Report on Form 8-K are being furnished under Item 2.02 of Form 8-K. The information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing. In the press release, the Registrant uses non-GAAP financial measures of revenues, income before income tax provision, net income and earnings per share to supplement its consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, and to better reflect its quarter-over-quarter and comparative quarterly operating performance. The Registrant also provides a computation of free cash flows. These non-GAAP financial measures do not replace the presentation of GAAP financial results but are provided to enhance overall understanding of the Registrant's current financial performance and prospects for the future. Specifically, the Registrant's management believes that the non-GAAP financial results provide useful information to both management and investors regarding certain additional financial and business trends relating to its financial condition and results from operations. In addition, management uses these measures for reviewing the Registrant's financial results and evaluating its financial performance. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits. 99.1 eSpeed, Inc. press release dated November 4, 2004. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. [[Image Removed]] eSpeed, Inc. [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Date: November 4, 2004 [[Image Removed]] By: [[Image Removed]] /s/ Howard W. Lutnick [[Image Removed]] [[Image Removed]] Howard W. Lutnick Chairman and Chief Executive Officer [[Image Removed]] -------------------------------------------------------------------------------- EX-99.1 3 file002.htm PRESS RELEASE ESPEED REPORTS THIRD QUARTER 2004 OPERATING EPS OF $0.11 AND GAAP EPS OF $0.10 Company Provides Guidance for Fourth Quarter and Full Year 2004 NEW YORK(BUSINESS WIRE)November 4, 2004eSpeed, Inc. (NASDAQ: ESPD-News), a leading developer of electronic marketplaces and trading technology for the global capital markets, today reported results for the third quarter ended September 30, 2004. Earnings eSpeed reported net income of $5.7 million, or $0.10 per diluted share, for the third quarter 2004 on a Generally Accepted Accounting Principles (GAAP) basis. To reflect earnings generated from the Company's operations, eSpeed also reports operating income. For the same period, the Company reported operating income of $6.0 million, or $0.11 per diluted share. The difference between operating income and GAAP net income is a $0.2 million charge for a charitable contribution to the Cantor Fitzgerald Relief Fund related to the September 11th Charity Day and a $0.1 million non-cash charge for business partner securities. For comparative purposes, eSpeed reported operating income of $10.8 million, or $0.19 per diluted share, in the third quarter of 2003. Revenues eSpeed's total revenues for the third quarter 2004 were $39.8 million, compared to total revenues of $44.3 million for the third quarter 2003. Third quarter 2004 fully electronic revenues were $25.5 million compared to $32.3 million in the third quarter 2003. Total revenues from Software Solutions in the third quarter 2004 were $8.0 million versus $6.1 million in the third quarter 2003. Third quarter 2004 pre-tax operating margins were 24.9 percent versus 39.9 percent in the third quarter 2003. Volume & Transactions Fully electronic volume was $6.9 trillion for the third quarter 2004, compared to $9.6 trillion reported by the Company in the third quarter 2003. eSpeed's total electronic volume, including fully electronic and voice-assisted transactions, for the third quarter 2004 was $10.4 trillion, compared with $12.4 trillion in the third quarter 2003. Average daily Federal Reserve US Treasury volume was $486 billion for the third quarter 2004. eSpeed had expected average daily Federal Reserve US Treasury volume to be between $445 and $465 billion for this period. Fully electronic notional volume for new products, which eSpeed defines as mortgage-backed securities, foreign exchange, interest rate swaps, futures and repos, was $376 billion in the third quarter 2004, compared to $199 billion in the second quarter 2004. Volume for the eSpeed Equities direct access product was 105 million shares in the third quarter 2004, compared with 102 million shares in the second quarter 2004. Free Cash Flow & Cash The Company generated free cash flow of $13.0 million for the third quarter 2004. Excluding related party receivables and payables, free cash flow for the third quarter of 2004 was $13.3 million. As of September 30, 2004, eSpeed's cash and cash equivalents was approximately $223 million. From August 6 to date, eSpeed repurchased approximately 1.3 million shares of the Company's stock for a total of $12.4 million in cash, at an average price of $9.56 per share. Outlook For the fourth quarter 2004, eSpeed expects operating earnings to be in the range of $0.05 to $0.06 per diluted share. This guidance is based on the Company's expectations that the average daily Federal Reserve US Treasury volume will be between $455 and $475 billion for the fourth quarter 1 -------------------------------------------------------------------------------- 2004, and on an anticipated increase in expenses associated with the Company's acquisition of ITSECCO Holdings Limited, as well as expenses associated with the increase in the size of the Company's sales force. eSpeed expects to generate operating revenues in excess of $163 million and expects its pre-tax operating margins to be approximately 30 percent for the full year 2004. Operating earnings for 2004 are expected to be in a range of $0.51 to $0.52 per diluted share. "As we prepare to close out this year and continue looking toward 2005, the business lines that make up our foundation provide a solid base on which our business can grow," commented Howard W. Lutnick, Chairman and CEO of eSpeed. "We are committed to maintaining our strong foundation, leveraging that foundation for future growth, and capturing the opportunities in our markets." 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 non-operating expenses and gains. In addition, the Company provides a computation of free cash flows. 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. In the third quarter of 2004, the difference between GAAP net income and non-GAAP net operating income was $0.3 million. 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 equities marketplaces. eSpeed's suite of marketplace tools provides end-to-end transaction solutions for the purchase and sale of financial and non-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 the trusted source for electronic trading at the world's largest fixed income and foreign exchange trading firms and major exchanges. To learn more, please visit www.espeed.com. Statements contained in this Press Release, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to: the effects of the attacks on the World Trade Center, market volatility, the limited operating history of eSpeed, Inc., and its ability to enter into marketing and strategic alliances, to effectively manage its growth, to expand the use of its electronic systems and to induce clients to use its marketplaces and services, and other factors that are discussed in eSpeed's Annual Report on Form 10-K, filed with the Securities and Exchange Commission. Contacts: Investors: Kim Henneforth 212-610-2433 Media: Michael Geller 212-610-2430 2 -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands, except share data) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] September 30, 2004 [[Image Removed]] December 31, 2003 [[Image Removed]] (Unaudited) [[Image Removed]] Assets [[Image Removed]] [[Image Removed]] Cash and cash equivalents [[Image Removed]] $ 37,116 [[Image Removed]] $ 55,318 Reverse repurchase agreements with related parties [[Image Removed]] 185,951 [[Image Removed]] 173,182 Total cash and cash equivalents [[Image Removed]] 223,067 [[Image Removed]] 228,500 Fixed assets, net [[Image Removed]] 46,568 [[Image Removed]] 34,467 Investments [[Image Removed]] 12,394 [[Image Removed]] 11,449 Intangible assets, net [[Image Removed]] 18,906 [[Image Removed]] 18,927 Receivable from related parties [[Image Removed]] 1,218 [[Image Removed]] 1,518 Other assets [[Image Removed]] 2,460 [[Image Removed]] 2,707 Total assets [[Image Removed]] $ 304,613 [[Image Removed]] $ 297,568 [[Image Removed]] [[Image Removed]] Liabilities and Stockholders' Equity [[Image Removed]] [[Image Removed]] Liabilities: [[Image Removed]] [[Image Removed]] Payable to related parties [[Image Removed]] $ 3,416 [[Image Removed]] $ 6,323 Accounts payable and accrued liabilities [[Image Removed]] 30,209 [[Image Removed]] 19,560 Total liabilities [[Image Removed]] 33,625 [[Image Removed]] 25,883 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Stockholders' Equity: [[Image Removed]] [[Image Removed]] Preferred stock, par value $0.01 per share; 50,000,000 shares authorized, 600 and 8,000,600 [[Image Removed]] [[Image Removed]] shares issued and outstanding at September 30, 2004 and December 31, 2003, respectively 80 Class A common stock, par value $.01 per share; 200,000,000 shares authorized; 32,484,734 and [[Image Removed]] [[Image Removed]] 30,953,867 shares issued at September 30, 2004 and December 31, 2003, respectively 325 310 Class B common stock, par value $.01 per share; 100,000,000 shares authorized; 23,889,270 and [[Image Removed]] [[Image Removed]] 25,139,270 shares issued and outstanding at September 30, 2004 and December 31, 2003, respectively 239 251 Additional paid-in capital [[Image Removed]] 290,530 [[Image Removed]] 287,593 Unamortized expense of business partner and [[Image Removed]] [[Image Removed]] non-employee securities (471 ) (1,192 ) Treasury stock, at cost: 2,852,715 and 186,399 shares of Class A common stock at September 30, 2004 and [[Image Removed]] [[Image Removed]] December 31, 2003, respectively (31,846 ) (2,094 ) Retained earnings (accumulated deficit) [[Image Removed]] 12,211 [[Image Removed]] (13,263 ) Total stockholders' equity [[Image Removed]] 270,988 [[Image Removed]] 271,685 Total liabilities and stockholders' equity [[Image Removed]] $ 304,613 [[Image Removed]] $ 297,568 [[Image Removed]] 3 -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME IN ACCORDANCE WITH GAAP (unaudited) (in thousands, except per share data) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Three Months Ended [[Image Removed]] Nine Months Ended September 30, September 30, [[Image Removed]] 2004 [[Image Removed]] 2003 [[Image Removed]] 2004 [[Image Removed]] 2003 Revenues: [[Image Removed]] [[Image Removed]] [[Image Removed]] Transaction revenues with related parties [[Image Removed]] [[Image Removed]] [[Image Removed]] Fully electronic transactions [[Image Removed]] $ 25,489 [[Image Removed]] $ 32,300 [[Image Removed]] $ 85,170 [[Image Removed]] $ 82,348 Voice-assisted brokerage transactions [[Image Removed]] 5,233 [[Image Removed]] 5,153 [[Image Removed]] 16,449 [[Image Removed]] 14,959 Screen-assisted open outcry transactions [[Image Removed]] 225 [[Image Removed]] 128 [[Image Removed]] 614 [[Image Removed]] 420 Total transaction revenues with related parties [[Image Removed]] 30,947 [[Image Removed]] 37,581 [[Image Removed]] 102,233 [[Image Removed]] 97,727 Software Solutions fees from related parties [[Image Removed]] 4,681 [[Image Removed]] 3,821 [[Image Removed]] 13,268 [[Image Removed]] 11,351 Software Solutions and licensing fees from unrelated parties [[Image Removed]] 3,278 [[Image Removed]] 2,321 [[Image Removed]] 9,383 [[Image Removed]] 6,662 Interest income [[Image Removed]] 865 [[Image Removed]] 547 [[Image Removed]] 2,370 [[Image Removed]] 1,652 Total revenues [[Image Removed]] 39,771 [[Image Removed]] 44,270 [[Image Removed]] 127,254 [[Image Removed]] 117,392 Expenses: [[Image Removed]] [[Image Removed]] Compensation and employee benefits [[Image Removed]] 10,499 [[Image Removed]] 9,790 [[Image Removed]] 29,582 [[Image Removed]] 27,873 Occupancy and equipment [[Image Removed]] [[Image Removed]] [[Image Removed]] Amortization of software development costs [[Image Removed]] 2,553 [[Image Removed]] 1,981 [[Image Removed]] 7,204 [[Image Removed]] 5,491 Other occupancy and equipment [[Image Removed]] 6,322 [[Image Removed]] 6,210 [[Image Removed]] 18,622 [[Image Removed]] 17,448 Professional and consulting fees [[Image Removed]] 1,663 [[Image Removed]] 953 [[Image Removed]] 3,461 [[Image Removed]] 2,927 Communications and client networks [[Image Removed]] 1,684 [[Image Removed]] 1,715 [[Image Removed]] 4,892 [[Image Removed]] 5,024 Marketing [[Image Removed]] 319 [[Image Removed]] 373 [[Image Removed]] 1,084 [[Image Removed]] 1,115 Administrative fees to related parties [[Image Removed]] 3,435 [[Image Removed]] 2,579 [[Image Removed]] 9,604 [[Image Removed]] 7,747 [[Image Removed]] Amortization of business partner and non-employee securities [[Image Removed]] 136 [[Image Removed]] 648 [[Image Removed]] 722 [[Image Removed]] 1,715 [[Image Removed]] Other [[Image Removed]] 3,742 [[Image Removed]] 3,706 [[Image Removed]] 10,258 [[Image Removed]] 8,855 Total expenses [[Image Removed]] 30,353 [[Image Removed]] 27,955 [[Image Removed]] 85,429 [[Image Removed]] 78,195 Income before income tax provision [[Image Removed]] 9,418 [[Image Removed]] 16,315 [[Image Removed]] 41,825 [[Image Removed]] 39,197 Income tax provision [[Image Removed]] 3,683 [[Image Removed]] 6,353 [[Image Removed]] 16,354 [[Image Removed]] 11,658 Net income [[Image Removed]] $ 5,735 [[Image Removed]] $ 9,962 [[Image Removed]] $ 25,471 [[Image Removed]] $ 27,539 Per share data: [[Image Removed]] [[Image Removed]] [[Image Removed]] Basic earnings per share [[Image Removed]] $ 0.11 [[Image Removed]] $ 0.18 [[Image Removed]] $ 0.46 [[Image Removed]] $ 0.50 Diluted earnings per share [[Image Removed]] $ 0.10 [[Image Removed]] $ 0.17 [[Image Removed]] $ 0.45 [[Image Removed]] $ 0.48 Basic weighted average shares of common stock outstanding [[Image Removed]] 54,398 [[Image Removed]] 55,291 [[Image Removed]] 55,538 [[Image Removed]] 55,205 Diluted weighted average shares of common stock outstanding [[Image Removed]] 55,289 [[Image Removed]] 57,730 [[Image Removed]] 57,065 [[Image Removed]] 57,171 [[Image Removed]] 4 -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (unaudited) (in thousands, except per share data) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Three Months Ended [[Image Removed]] Nine Months Ended September 30, September 30, [[Image Removed]] 2004 [[Image Removed]] 2003 [[Image Removed]] 2004 [[Image Removed]] 2003 Revenues: [[Image Removed]] [[Image Removed]] Transaction revenues with related parties [[Image Removed]] Fully electronic transactions [[Image Removed]] $ 25,489 [[Image Removed]] $ 32,300 [[Image Removed]] $ 85,170 [[Image Removed]] $ 82,348 Voice-assisted brokerage transactions [[Image Removed]] 5,233 [[Image Removed]] 5,153 [[Image Removed]] 16,449 [[Image Removed]] 14,959 Screen-assisted open outcry transactions [[Image Removed]] 225 [[Image Removed]] 128 [[Image Removed]] 614 [[Image Removed]] 420 Total transaction revenues with related parties [[Image Removed]] 30,947 [[Image Removed]] 37,581 [[Image Removed]] 102,233 [[Image Removed]] 97,727 Software Solutions fees from related parties [[Image Removed]] 4,681 [[Image Removed]] 3,821 [[Image Removed]] 13,268 [[Image Removed]] 11,351 Software Solutions and licensing fees from unrelated parties [[Image Removed]] 3,278 [[Image Removed]] 2,321 [[Image Removed]] 9,383 [[Image Removed]] 6,662 Interest income [[Image Removed]] 865 [[Image Removed]] 547 [[Image Removed]] 2,370 [[Image Removed]] 1,652 Total revenues [[Image Removed]] 39,771 [[Image Removed]] 44,270 [[Image Removed]] 127,254 [[Image Removed]] 117,392 Expenses: [[Image Removed]] [[Image Removed]] Compensation and employee benefits [[Image Removed]] 10,499 [[Image Removed]] 9,790 [[Image Removed]] 29,582 [[Image Removed]] 27,873 Occupancy and equipment [[Image Removed]] [[Image Removed]] Amortization of software development costs [[Image Removed]] 2,553 [[Image Removed]] 1,981 [[Image Removed]] 7,204 [[Image Removed]] 5,491 Other occupancy and equipment [[Image Removed]] 6,322 [[Image Removed]] 6,210 [[Image Removed]] 18,622 [[Image Removed]] 17,448 Professional and consulting fees [[Image Removed]] 1,663 [[Image Removed]] 953 [[Image Removed]] 3,461 [[Image Removed]] 2,927 Communications and client networks [[Image Removed]] 1,684 [[Image Removed]] 1,715 [[Image Removed]] 4,892 [[Image Removed]] 5,024 Marketing [[Image Removed]] 319 [[Image Removed]] 373 [[Image Removed]] 1,084 [[Image Removed]] 1,115 Administrative fees to related parties [[Image Removed]] 3,435 [[Image Removed]] 2,579 [[Image Removed]] 9,604 [[Image Removed]] 7,747 Other [[Image Removed]] 3,402 [[Image Removed]] 3,019 [[Image Removed]] 9,918 [[Image Removed]] 8,168 Total operating expenses [[Image Removed]] 29,877 [[Image Removed]] 26,620 [[Image Removed]] 84,367 [[Image Removed]] 75,793 Pre-tax operating income [[Image Removed]] 9,894 [[Image Removed]] 17,650 [[Image Removed]] 42,887 [[Image Removed]] 41,599 Income tax provision [[Image Removed]] 3,869 [[Image Removed]] 6,873 [[Image Removed]] 16,768 [[Image Removed]] 12,323 Net operating income [[Image Removed]] 6,025 [[Image Removed]] 10,777 [[Image Removed]] 26,119 [[Image Removed]] 29,276 Non-operating loss: [[Image Removed]] [[Image Removed]] [[Image Removed]] Charitable contribution Re: 9/11, net of tax [[Image Removed]] (207 ) [[Image Removed]] (420 ) [[Image Removed]] (207 ) [[Image Removed]] (420 ) Amortization of business partner and non-employee securities, [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] net of tax (83 ) (395 ) (441 ) (1,317 ) Total non-operating loss [[Image Removed]] (290 ) [[Image Removed]] (815 ) [[Image Removed]] (648 ) [[Image Removed]] (1,737 ) GAAP net income [[Image Removed]] $ 5,735 [[Image Removed]] $ 9,962 [[Image Removed]] $ 25,471 [[Image Removed]] $ 27,539 Per share data: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Basic pre-tax operating income per share [[Image Removed]] $ 0.18 [[Image Removed]] $ 0.32 [[Image Removed]] $ 0.77 [[Image Removed]] $ 0.75 Basic tax provision per share [[Image Removed]] $ (0.07 ) [[Image Removed]] $ (0.12 ) [[Image Removed]] $ (0.30 ) [[Image Removed]] $ (0.22 ) Basic net operating income per share [[Image Removed]] $ 0.11 [[Image Removed]] $ 0.19 [[Image Removed]] $ 0.47 [[Image Removed]] $ 0.53 Basic non-operating loss per share [[Image Removed]] $ (0.01 ) [[Image Removed]] $ (0.01 ) [[Image Removed]] $ (0.01 ) [[Image Removed]] $ (0.03 ) Basic GAAP earnings per share [[Image Removed]] $ 0.11 [[Image Removed]] $ 0.18 [[Image Removed]] $ 0.46 [[Image Removed]] $ 0.50 Diluted pre-tax operating income per share [[Image Removed]] $ 0.18 [[Image Removed]] $ 0.31 [[Image Removed]] $ 0.75 [[Image Removed]] $ 0.73 Diluted tax provision per share [[Image Removed]] $ (0.07 ) [[Image Removed]] $ (0.12 ) [[Image Removed]] $ (0.29 ) [[Image Removed]] $ (0.22 ) Diluted net operating income per share [[Image Removed]] $ 0.11 [[Image Removed]] $ 0.19 [[Image Removed]] $ 0.46 [[Image Removed]] $ 0.51 Diluted non-operating loss per share [[Image Removed]] $ (0.01 ) [[Image Removed]] $ (0.01 ) [[Image Removed]] $ (0.01 ) [[Image Removed]] $ (0.03 ) Diluted GAAP earnings per share [[Image Removed]] $ 0.10 [[Image Removed]] $ 0.17 [[Image Removed]] $ 0.45 [[Image Removed]] $ 0.48 Basic weighted average shares of common stock outstanding [[Image Removed]] 54,398 [[Image Removed]] 55,291 [[Image Removed]] 55,538 [[Image Removed]] 55,205 Diluted weighted average shares of common stock outstanding [[Image Removed]] 55,289 [[Image Removed]] 57,730 [[Image Removed]] 57,065 [[Image Removed]] 57,171 Additional data: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Pre-tax operating margin [[Image Removed]] 24.9 % [[Image Removed]] 39.9 % [[Image Removed]] 33.7 % [[Image Removed]] 35.4 % [[Image Removed]] 5 -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Three Months Ended [[Image Removed]] Nine Months Ended September 30, September 30, [[Image Removed]] 2004 [[Image Removed]] 2003 [[Image Removed]] 2004 [[Image Removed]] 2003 Cash flows from operating activities: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Net income [[Image Removed]] $ 5,735 [[Image Removed]] $ 9,962 [[Image Removed]] $ 25,471 [[Image Removed]] $ 27,539 Adjustments to reconcile net income to net cash [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] provided by operating activities: Depreciation and amortization [[Image Removed]] 6,140 [[Image Removed]] 4,604 [[Image Removed]] 17,271 [[Image Removed]] 13,044 Amortization of business partner and non-employee [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] securities 136 648 722 1,715 Equity in net loss of unconsolidated investments [[Image Removed]] 32 [[Image Removed]] 41 [[Image Removed]] 42 [[Image Removed]] 80 Deferred income tax expense [[Image Removed]] 414 [[Image Removed]] 928 [[Image Removed]] 1,022 [[Image Removed]] 3,481 Tax benefit from stock option and warrant exercises [[Image Removed]] 23 [[Image Removed]] 1,778 [[Image Removed]] 958 [[Image Removed]] 3,110 Issuance of securities under employee benefit plan [[Image Removed]] 30 [[Image Removed]] 30 [[Image Removed]] 90 [[Image Removed]] 160 Changes in operating assets and liabilities: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Receivable from related parties [[Image Removed]] (93 ) [[Image Removed]] (1,650 ) [[Image Removed]] 300 [[Image Removed]] 2,800 Other assets [[Image Removed]] 32 [[Image Removed]] 991 [[Image Removed]] (1,447 ) [[Image Removed]] (730 ) Payable to related parties [[Image Removed]] (141 ) [[Image Removed]] 393 [[Image Removed]] (2,907 ) [[Image Removed]] (15,311 ) Accounts payable and accrued expenses [[Image Removed]] 9,514 [[Image Removed]] 6,289 [[Image Removed]] 9,632 [[Image Removed]] 7,884 Net cash provided by operating activities [[Image Removed]] 21,822 [[Image Removed]] 24,014 [[Image Removed]] 51,154 [[Image Removed]] 43,772 Cash flows from investing activities: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Purchase of fixed assets [[Image Removed]] (1,941 ) [[Image Removed]] (2,569 ) [[Image Removed]] (11,271 ) [[Image Removed]] (4,471 ) Sale of premises and equipment [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] 2,752 Capitalization of software development costs [[Image Removed]] (5,200 ) [[Image Removed]] (3,183 ) [[Image Removed]] (13,647 ) [[Image Removed]] (9,596 ) Capitalization of patent defense and registration [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] costs (1,641 ) (1,018 ) (4,441 ) (3,671 ) Purchase of investment [[Image Removed]] [[Image Removed]] [[Image Removed]] (360 ) [[Image Removed]] 0 Net cash used in investing activities [[Image Removed]] (8,782 ) [[Image Removed]] (6,770 ) [[Image Removed]] (29,719 ) [[Image Removed]] (14,986 ) Cash flows from financing activities: [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Repurchase of Class A common stock [[Image Removed]] (29,752 ) [[Image Removed]] [[Image Removed]] (29,752 ) [[Image Removed]] (1,872 ) Proceeds from exercises of stock options and warrants [[Image Removed]] 58 [[Image Removed]] 5,158 [[Image Removed]] 1,811 [[Image Removed]] 6,137 Receivable from broker on stock option exercises [[Image Removed]] 123 [[Image Removed]] (4,065 ) [[Image Removed]] 1,073 [[Image Removed]] (4,065 ) Net cash (used in) provided by financing activities [[Image Removed]] (29,571 ) [[Image Removed]] 1,093 [[Image Removed]] (26,868 ) [[Image Removed]] 200 Net increase in cash and cash equivalents [[Image Removed]] (16,531 ) [[Image Removed]] 18,337 [[Image Removed]] (5,433 ) [[Image Removed]] 28,986 Cash and cash equivalents at beginning of period [[Image Removed]] 239,598 [[Image Removed]] 198,648 [[Image Removed]] 228,500 [[Image Removed]] 187,999 Cash and cash equivalents at end of period [[Image Removed]] $ 223,067 [[Image Removed]] $ 216,985 [[Image Removed]] $ 223,067 [[Image Removed]] $ 216,985 [[Image Removed]] 6 -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries COMPUTATION OF CONSOLIDATED FREE CASH FLOWS (unaudited) (in thousands) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Three Months Ended [[Image Removed]] Nine Months Ended September 30, September 30, [[Image Removed]] 2004 [[Image Removed]] 2003 [[Image Removed]] 2004 [[Image Removed]] 2003 Pre-tax operating income [[Image Removed]] $ 9,894 [[Image Removed]] $ 17,650 [[Image Removed]] $ 42,887 [[Image Removed]] $ 41,599 Depreciation and amortization [[Image Removed]] 6,140 [[Image Removed]] 4,604 [[Image Removed]] 17,271 [[Image Removed]] 13,044 Other non-cash items [[Image Removed]] 62 [[Image Removed]] 71 [[Image Removed]] 132 [[Image Removed]] 240 Pre-tax operating income adjusted for depreciation, [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] amortization and other 16,096 22,325 60,290 54,883 Income tax provision on operating income [[Image Removed]] (3,869 ) [[Image Removed]] (6,873 ) [[Image Removed]] (16,768 ) [[Image Removed]] (12,323 ) Income tax benefit on non-operating loss [[Image Removed]] 186 [[Image Removed]] 520 [[Image Removed]] 414 [[Image Removed]] 665 Deferred income tax expense [[Image Removed]] 414 [[Image Removed]] 928 [[Image Removed]] 1,022 [[Image Removed]] 3,481 Tax benefit from stock option and warrant exercises [[Image Removed]] 23 [[Image Removed]] 1,778 [[Image Removed]] 958 [[Image Removed]] 3,110 Income taxes paid [[Image Removed]] 1,665 [[Image Removed]] 3,360 [[Image Removed]] 12,851 [[Image Removed]] 3,360 Decrease (increase) in current income tax payable [[Image Removed]] (1,581 ) [[Image Removed]] (287 ) [[Image Removed]] (1,523 ) [[Image Removed]] (1,707 ) Changes in related party receivable and payable, net [[Image Removed]] (234 ) [[Image Removed]] (1,257 ) [[Image Removed]] (2,607 ) [[Image Removed]] (12,511 ) Changes in other operating assets and liabilities, [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] net 7,881 3,920 (4,666 ) 3,794 Charitable contribution Re: 9/11 [[Image Removed]] (340 ) [[Image Removed]] (687 ) [[Image Removed]] (340 ) [[Image Removed]] (687 ) Net cash provided by operating activities [[Image Removed]] 21,822 [[Image Removed]] 24,014 [[Image Removed]] 51,154 [[Image Removed]] 43,772 Purchase of fixed assets [[Image Removed]] (1,941 ) [[Image Removed]] (2,569 ) [[Image Removed]] (11,271 ) [[Image Removed]] (4,471 ) Capitalization of software development costs [[Image Removed]] (5,200 ) [[Image Removed]] (3,183 ) [[Image Removed]] (13,647 ) [[Image Removed]] (9,596 ) Capitalization of patent defense and registration [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] costs (1,641 ) (1,018 ) (4,441 ) (3,671 ) Purchase of investment [[Image Removed]] [[Image Removed]] [[Image Removed]] (360 ) [[Image Removed]] Free cash flows [[Image Removed]] 13,040 [[Image Removed]] 17,244 [[Image Removed]] 21,435 [[Image Removed]] 26,034 Related party receivable and payable, net [[Image Removed]] 234 [[Image Removed]] 1,257 [[Image Removed]] 2,607 [[Image Removed]] 12,511 Free cash flows, net of related party activity [[Image Removed]] $ 13,274 [[Image Removed]] $ 18,501 [[Image Removed]] $ 24,042 [[Image Removed]] $ 38,545 [[Image Removed]] 7 -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP (unaudited) (in thousands) [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Three Months Ended [[Image Removed]] Nine Months Ended September 30, September 30, [[Image Removed]] 2004 [[Image Removed]] 2003 [[Image Removed]] 2004 [[Image Removed]] 2003 Revenues [[Image Removed]] $ 39,771 [[Image Removed]] $ 44,270 [[Image Removed]] $ 127,254 [[Image Removed]] $ 117,392 GAAP revenues [[Image Removed]] $ 39,771 [[Image Removed]] $ 44,270 [[Image Removed]] $ 127,254 [[Image Removed]] $ 117,392 Operating expenses [[Image Removed]] $ 29,877 [[Image Removed]] $ 26,620 [[Image Removed]] $ 84,367 [[Image Removed]] $ 75,793 Amortization of business partner and non-employee securities [a] [[Image Removed]] 136 [[Image Removed]] 648 [[Image Removed]] 722 [[Image Removed]] 1,715 Charitable contribution Re: 9/11 [b] [[Image Removed]] 340 [[Image Removed]] 687 [[Image Removed]] 340 [[Image Removed]] 687 GAAP expenses [[Image Removed]] $ 30,353 [[Image Removed]] $ 27,955 [[Image Removed]] $ 85,429 [[Image Removed]] $ 78,195 Pre-tax operating income [[Image Removed]] $ 9,894 [[Image Removed]] $ 17,650 [[Image Removed]] $ 42,887 [[Image Removed]] $ 41,599 Sum of reconciling items = - [a] - [b] [[Image Removed]] (476 ) [[Image Removed]] (1,335 ) [[Image Removed]] (1,062 ) [[Image Removed]] (2,402 ) GAAP income before income tax provision [[Image Removed]] $ 9,418 [[Image Removed]] $ 16,315 [[Image Removed]] $ 41,825 [[Image Removed]] $ 39,197 Income tax provision [[Image Removed]] $ 3,869 [[Image Removed]] $ 6,873 [[Image Removed]] $ 16,768 [[Image Removed]] $ 12,323 Income tax benefit on non-operating loss [c] [[Image Removed]] (186 ) [[Image Removed]] (520 ) [[Image Removed]] (414 ) [[Image Removed]] (665 ) GAAP income tax provision [[Image Removed]] $ 3,683 [[Image Removed]] $ 6,353 [[Image Removed]] $ 16,354 [[Image Removed]] $ 11,658 Net operating income [[Image Removed]] $ 6,025 [[Image Removed]] $ 10,777 [[Image Removed]] $ 26,119 [[Image Removed]] $ 29,276 Sum of reconciling items = -[a] - [b] - [c] [[Image Removed]] (290 ) [[Image Removed]] (815 ) [[Image Removed]] (648 ) [[Image Removed]] (1,737 ) GAAP net income [[Image Removed]] $ 5,735 [[Image Removed]] $ 9,962 [[Image Removed]] $ 25,471 [[Image Removed]] $ 27,539 [[Image Removed]] 8 -------------------------------------------------------------------------------- eSpeed, Inc. and Subsidiaries Quarterly Market Activity Report [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] % Change [[Image Removed]] % Change [[Image Removed]] 3Q03 [[Image Removed]] 4Q03** [[Image Removed]] 1Q04 [[Image Removed]] 2Q04 [[Image Removed]] 3Q04 [[Image Removed]] 3Q04 vs 2Q04 3Q04 vs 3Q03 Volume (in billions) [[Image Removed]] Fully Electronic Volume - Excluding New Products [[Image Removed]] 9,610 [[Image Removed]] 7,535 [[Image Removed]] 8,209 [[Image Removed]] 7,791 [[Image Removed]] 6,520 [[Image Removed]] (16.3 %) [[Image Removed]] (32.1 %) Fully Electronic Volume - New Products* [[Image Removed]] N/A [[Image Removed]] 21 [[Image Removed]] 133 [[Image Removed]] 199 [[Image Removed]] 376 [[Image Removed]] 88.9 % [[Image Removed]] Voice-Assisted Volume [[Image Removed]] 2,825 [[Image Removed]] 2,756 [[Image Removed]] 3,586 [[Image Removed]] 3,070 [[Image Removed]] 3,491 [[Image Removed]] 13.7 % [[Image Removed]] 23.6 % Total Electronic Volume [[Image Removed]] 12,435 [[Image Removed]] 10,312 [[Image Removed]] 11,928 [[Image Removed]] 11,061 [[Image Removed]] 10,388 [[Image Removed]] (6.1 %) [[Image Removed]] (16.5 %) Electronic Transaction Count [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fully Electronic Transactions - Excluding New [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Products 1,465,263 1,208,331 1,264,612 1,252,654 1,127,444 (10.0 %) (23.1 %) Fully Electronic Transactions - New Products* [[Image Removed]] N/A [[Image Removed]] 6,242 [[Image Removed]] 23,996 [[Image Removed]] 38,369 [[Image Removed]] 73,457 [[Image Removed]] 91.4 % [[Image Removed]] Voice-Assisted Transactions [[Image Removed]] 157,901 [[Image Removed]] 149,181 [[Image Removed]] 175,036 [[Image Removed]] 165,906 [[Image Removed]] 157,134 [[Image Removed]] (5.3 %) [[Image Removed]] (0.5 %) Total Transactions [[Image Removed]] 1,623,164 [[Image Removed]] 1,363,754 [[Image Removed]] 1,463,644 [[Image Removed]] 1,456,929 [[Image Removed]] 1,358,035 [[Image Removed]] (6.8 %) [[Image Removed]] (16.3 %) eSpeed Equities Direct Access (Number of Shares [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Traded In Millions) N/A 56 85 102 105 2.8 % Trading Days [[Image Removed]] 64 [[Image Removed]] 62 [[Image Removed]] 62 [[Image Removed]] 62 [[Image Removed]] 64 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] * New Products defined as Mortgage-Backed Securities, Foreign Exchange, Interest Rate Swaps, Repos and Futures. CBOT Futures volume calculated based on per contract notional value of $200,000 for the two year contract and $100,000 for all others. [[Image Removed]] [[Image Removed]] ** Modification in our calculation based on recognition of new product volume. [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Global Interest Rate Futures Volume (1) [[Image Removed]] CBOT - US Treasury Contracts [[Image Removed]] 83,851,953 [[Image Removed]] 72,558,944 [[Image Removed]] 85,432,539 [[Image Removed]] 97,809,197 [[Image Removed]] 97,875,096 [[Image Removed]] 0.1 % [[Image Removed]] 16.7 % CME - Euro $ Contracts [[Image Removed]] 56,273,797 [[Image Removed]] 52,414,323 [[Image Removed]] 59,434,778 [[Image Removed]] 80,289,683 [[Image Removed]] 82,256,775 [[Image Removed]] 2.4 % [[Image Removed]] 46.2 % EUREX - Bund Contracts [[Image Removed]] 63,377,019 [[Image Removed]] 51,717,399 [[Image Removed]] 62,145,662 [[Image Removed]] 57,280,434 [[Image Removed]] 55,998,582 [[Image Removed]] (2.2 %) [[Image Removed]] (11.6 %) Fed UST Volume (in billions) (2) [[Image Removed]] UST Volume [[Image Removed]] 30,590 [[Image Removed]] 26,189 [[Image Removed]] 29,843 [[Image Removed]] 32,379 [[Image Removed]] 31,080 [[Image Removed]] (4.0 %) [[Image Removed]] 1.6 % Average Daily UST Volume [[Image Removed]] 478 [[Image Removed]] 422 [[Image Removed]] 481 [[Image Removed]] 522 [[Image Removed]] 486 [[Image Removed]] (7.0 %) [[Image Removed]] 1.6 % [[Image Removed]] NYSE - Volume (shares traded) - in millions (3) [[Image Removed]] 87,303 [[Image Removed]] 85,529 [[Image Removed]] 95,386 [[Image Removed]] 90,818 [[Image Removed]] 84,905 [[Image Removed]] (6.5 %) [[Image Removed]] (2.7 %) Transaction Value - in millions [[Image Removed]] 2,475,689 [[Image Removed]] 2,546,235 [[Image Removed]] 2,970,628 [[Image Removed]] 2,881,358 [[Image Removed]] 2,632,744 [[Image Removed]] (8.6 %) [[Image Removed]] 6.3 % [[Image Removed]] NASDAQ - Volume (shares traded) - in millions (4) [[Image Removed]] 110,672 [[Image Removed]] 112,636 [[Image Removed]] 126,314 [[Image Removed]] 108,328 [[Image Removed]] 99,636 [[Image Removed]] (8.0 %) [[Image Removed]] (10.0 %) Transaction Value - in millions [[Image Removed]] 1,896,887 [[Image Removed]] 2,030,335 [[Image Removed]] 2,312,291 [[Image Removed]] 2,120,171 [[Image Removed]] 1,896,115 [[Image Removed]] (10.6 %) [[Image Removed]] (0.0 %) [[Image Removed]] [[Image Removed]] [[Image Removed]] Sources: (1) Futures Industry Association - Monthly Volume Report - (www.cbot.com, www.cme.com, www.eurexchange.com) [[Image Removed]] [[Image Removed]] (2) www.ny.frb.org/pihome/statistics/dealer - Federal Reserve Bank [[Image Removed]] [[Image Removed]] (3) NYSE - www.nyse.com [[Image Removed]] [[Image Removed]] (4) NASDAQ - www.marketdata.nasdaq.com 9 -------------------------------------------------------------------------------- [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Fiscal Year 2003 [[Image Removed]] Jan'03 [[Image Removed]] Feb'03 [[Image Removed]] Mar'03 [[Image Removed]] Apr'03 [[Image Removed]] May'03 [[Image Removed]] Jun'03 [[Image Removed]] Jul'03 [[Image Removed]] Aug'03 [[Image Removed]] Sep'03 Volume Data (in billions) [[Image Removed]] Fully Electronic [[Image Removed]] 2,309 [[Image Removed]] 1,906 [[Image Removed]] 2,564 [[Image Removed]] 2,070 [[Image Removed]] 2,871 [[Image Removed]] 2,840 [[Image Removed]] 3,428 [[Image Removed]] 2,952 [[Image Removed]] 3,230 Voice [[Image Removed]] 864 [[Image Removed]] 810 [[Image Removed]] 917 [[Image Removed]] 761 [[Image Removed]] 956 [[Image Removed]] 944 [[Image Removed]] 992 [[Image Removed]] 733 [[Image Removed]] 1,100 Total [[Image Removed]] 3,173 [[Image Removed]] 2,716 [[Image Removed]] 3,481 [[Image Removed]] 2,831 [[Image Removed]] 3,827 [[Image Removed]] 3,784 [[Image Removed]] 4,419 [[Image Removed]] 3,686 [[Image Removed]] 4,330 Transaction Count [[Image Removed]] Fully Electronic [[Image Removed]] 370,992 [[Image Removed]] 305,296 [[Image Removed]] 403,307 [[Image Removed]] 338,281 [[Image Removed]] 425,213 [[Image Removed]] 431,131 [[Image Removed]] 512,447 [[Image Removed]] 453,324 [[Image Removed]] 499,492 Voice [[Image Removed]] 49,801 [[Image Removed]] 48,449 [[Image Removed]] 53,520 [[Image Removed]] 44,767 [[Image Removed]] 49,946 [[Image Removed]] 53,510 [[Image Removed]] 55,258 [[Image Removed]] 44,804 [[Image Removed]] 57,839 Total [[Image Removed]] 420,793 [[Image Removed]] 353,745 [[Image Removed]] 456,827 [[Image Removed]] 383,048 [[Image Removed]] 475,159 [[Image Removed]] 484,641 [[Image Removed]] 567,705 [[Image Removed]] 498,128 [[Image Removed]] 557,331 Trading Days [[Image Removed]] 21 [[Image Removed]] 19 [[Image Removed]] 21 [[Image Removed]] 21 [[Image Removed]] 21 [[Image Removed]] 21 [[Image Removed]] 22 [[Image Removed]] 21 [[Image Removed]] 21 Fiscal Year 2004 [[Image Removed]] Jan'04 [[Image Removed]] Feb'04 [[Image Removed]] Mar'04 [[Image Removed]] Apr'04 [[Image Removed]] May'04 [[Image Removed]] Jun'04 [[Image Removed]] Jul'04 [[Image Removed]] Aug'04 [[Image Removed]] Sep'04 Volume Data (in billions) [[Image Removed]] Fully Electronic [[Image Removed]] 2,982 [[Image Removed]] 2,464 [[Image Removed]] 2,897 [[Image Removed]] 2,912 [[Image Removed]] 2,550 [[Image Removed]] 2,528 [[Image Removed]] 2,151 [[Image Removed]] 2,134 [[Image Removed]] 2,612 Voice [[Image Removed]] 1,144 [[Image Removed]] 1,146 [[Image Removed]] 1,296 [[Image Removed]] 1,058 [[Image Removed]] 1,019 [[Image Removed]] 994 [[Image Removed]] 1,180 [[Image Removed]] 1,023 [[Image Removed]] 1,288 Total [[Image Removed]] 4,126 [[Image Removed]] 3,610 [[Image Removed]] 4,192 [[Image Removed]] 3,970 [[Image Removed]] 3,569 [[Image Removed]] 3,522 [[Image Removed]] 3,331 [[Image Removed]] 3,157 [[Image Removed]] 3,900 Transaction Count [[Image Removed]] Fully Electronic [[Image Removed]] 449,197 [[Image Removed]] 379,084 [[Image Removed]] 460,327 [[Image Removed]] 460,211 [[Image Removed]] 417,503 [[Image Removed]] 413,309 [[Image Removed]] 361,945 [[Image Removed]] 376,279 [[Image Removed]] 462,677 Voice [[Image Removed]] 57,178 [[Image Removed]] 54,485 [[Image Removed]] 63,373 [[Image Removed]] 56,948 [[Image Removed]] 55,533 [[Image Removed]] 53,425 [[Image Removed]] 51,941 [[Image Removed]] 46,242 [[Image Removed]] 58,951 Total [[Image Removed]] 506,375 [[Image Removed]] 433,569 [[Image Removed]] 523,700 [[Image Removed]] 517,159 [[Image Removed]] 473,036 [[Image Removed]] 466,734 [[Image Removed]] 413,886 [[Image Removed]] 422,521 [[Image Removed]] 521,628 Trading Days [[Image Removed]] 20 [[Image Removed]] 19 [[Image Removed]] 23 [[Image Removed]] 21 [[Image Removed]] 20 [[Image Removed]] 21 [[Image Removed]] 21 [[Image Removed]] 22 [[Image Removed]] 21 [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] [[Image Removed]] Trading Days 2004 Q1 [[Image Removed]] Q2 [[Image Removed]] Q3 [[Image Removed]] Q4 62 [[Image Removed]] 62 [[Image Removed]] 64 [[Image Removed]] 62 2003 Q1 [[Image Removed]] Q2 [[Image Removed]] Q3 [[Image Removed]] Q4 61 [[Image Removed]] 63 [[Image Removed]] 64 [[Image Removed]] 62 [[Image Removed]] 10 --------------------------------------------------------------------------------