Feb 27, 2008 11:49 AM
NEW YORK, Feb 27, 2008 (BUSINESS WIRE) -- eSpeed, Inc. (NASDAQ: ESPD), a leading developer of electronic marketplaces and related trading technology for the global capital markets, today reported results for the fourth quarter and full year ended December 31, 2007.
On May 29, 2007, eSpeed, Inc. and BGC Partners announced that eSpeed and BGC planned to merge, and that the Combined Company would be named "BGC Partners, Inc." This merger is expected to close by the end of the first quarter of 2008. This release discusses fourth quarter and full year results for both companies, and the outlook for the Combined Company.
eSpeed's Fourth Quarter and Full Year Results Summary
4Q2007 4Q2006 FY2007 FY2006
Actual Actual Actual Actual
----------------------------------------------------------------------
GAAP Revenues $38.2 MM $45.0 MM $159.2 MM $164.7 MM
----------------------------------------------------------------------
Non-GAAP Operating Revenues $38.2 MM $41.9 MM $158.4 MM $157.6 MM
----------------------------------------------------------------------
GAAP Net (Loss) Income Per
Diluted Share ($0.42) $0.07 ($0.64) $0.09
----------------------------------------------------------------------
Non-GAAP Net Operating (Loss)
Income Per Diluted Share ($0.04) $0.06 $0.02 $0.15
----------------------------------------------------------------------
|
BGC's Preliminary Fourth Quarter and Full Year Results Summary(1)
BGC announced the following financial highlights related to its preliminary results for the fourth quarter and full year 2007:
* BGC's fourth quarter 2007 pre-tax profits were approximately $20 million versus a pre-tax loss of $32 million in the fourth quarter of 2006;
* BGC's full year 2007 pre-tax profits were approximately $101 million versus a pre-tax loss of $87 million in 2006;
* BGC's fourth quarter 2007 revenues increased by 33 percent year-over-year to approximately $253 million; and
* BGC's full year 2007 revenues increased by 37 percent year-over-year to approximately $1,029 million.
"BGC had a strong fourth quarter, and given its excellent performance year to date, we expect the Combined Company's pro forma pre-tax first quarter 2008 profits to increase by over 80 percent compared to the first quarter of 2007," said Howard W. Lutnick, who is Chairman, Chief Executive Officer and President of eSpeed, and who will become Chairman and co-Chief Executive Officer of the Combined Company upon the completion of eSpeed's planned merger with BGC.
"We expect the Combined Company's first quarter 2008 pro forma earnings per share to be approximately 450 percent higher than eSpeed's stand-alone non-GAAP net operating income per share of four cents in the first quarter of 2007," added Lee M. Amaitis, Chairman and Chief Executive Officer of BGC and Vice Chairman of eSpeed, who will become co-Chief Executive Officer of BGC Partners Inc. after the completion of the planned merger. "This extraordinary performance further demonstrates the strategic value to our stockholders of this highly accretive combination."
eSpeed's Fourth Quarter Earnings
eSpeed reported a net loss of $21.0 million, or $0.42 per diluted share, for the fourth quarter of 2007 based on Generally Accepted Accounting Principles ("GAAP"). To reflect earnings generated from the Company's operations, eSpeed also reported a non-GAAP net operating loss of $2.0 million, or $0.04 per diluted share. The difference between non-GAAP net operating loss and GAAP net loss for the quarter was primarily due to $12.3 million in one time pre-merger severance and stock based compensation expenses, $3.5 million in patent litigation costs, $1.8 million in deal-related expenses, a $1.0 million charge for the impairment of fixed assets and capitalized software costs, and $0.5 million in losses from Aqua, in which eSpeed has an equity stake and into which it contributed its previous Equities Direct Access business in October 2007. All of these differences were net of tax.
In comparison, eSpeed reported GAAP net income of $3.4 million, or $0.07 per diluted share, for the fourth quarter of 2006. eSpeed also reported non-GAAP net operating income of $3.3 million, or $0.06 per diluted share. The difference between non-GAAP net operating income and GAAP net income for the quarter occurred primarily due to a September 11th-related government grant of $1.9 million partially offset by a $1.2 million charge for the impairment of fixed assets and capitalized software costs, $0.5 million in patent litigation costs, and a $0.1 million charge related to an office relocation, all net of tax.
eSpeed's Full Year Earnings
For the full year 2007, eSpeed reported a GAAP net loss of $32.5 million, or $0.64 per diluted share, and non-GAAP net operating income of $0.9 million, or $0.02 per diluted share. The difference between non-GAAP net operating income and GAAP net loss for the year was primarily due to $12.3 million in one time pre-merger severance and stock based compensation expenses, $10.7 million in patent litigation costs, $5.1 million in deal-related expenses, $3.5 million in charges for the impairment of fixed assets and capitalized software costs, $1.6 million in losses from Aqua, and $0.3 million in charitable contributions related to eSpeed's September 11, 2007 Charity Day. All of these differences were net of tax.
In comparison, eSpeed reported GAAP net income of $4.7 million, or $0.09 per diluted share, for the full year 2006. For the same timeframe, eSpeed reported non-GAAP net operating income of $7.8 million, or $0.15 per diluted share. The difference between non-GAAP net operating income and GAAP net income for the full year 2006 was primarily due to insurance proceeds of $2.1 million, a September 11th related government grant of $1.9 million, a payment to eSpeed of $0.5 million relating to a litigation settlement, and a $0.2 million net gain related to tax settlements, partially offset by $2.5 million in expenses relating to the relocation of the Company's London offices, $2.0 million in patent litigation costs, $1.3 million in acquisition-related costs, a $1.2 million charge for the impairment of fixed assets and capitalized software costs, $0.7 million in accelerated amortization of capitalized software, and a $0.2 million charitable contribution to the Cantor Fitzgerald Relief Fund, all net of tax.
eSpeed's Fourth Quarter Revenues
eSpeed reported GAAP and non-GAAP operating revenues of $38.2 million for the fourth quarter of 2007.
eSpeed reported GAAP revenues of $45.0 million and non-GAAP operating revenues of $41.9 million for the fourth quarter of 2006. The difference between GAAP and non-GAAP revenues for the fourth quarter of 2006 was a September 11th related government grant of $3.1 million.
Fully electronic revenues were $16.0 million in the fourth quarter of 2007, compared with $18.2 million in the fourth quarter of 2006. Excluding $1.9 million in revenues related to the Wagner patent and recorded in the fourth quarter of 2006 as part of "Fully electronic transactions with unrelated parties", revenues from eSpeed's fully electronic business were flat compared to the fourth quarter of 2007 from $16.3 million in the year-earlier period. Revenues from software solutions were $11.4 million in the quarter compared with $13.6 million in the year ago period. Excluding Wagner-related payments of $4.2 million in the fourth quarter 2006, recorded as "Software Solutions and licensing fees from unrelated parties", software solutions revenues increased by 21.5 percent from $9.4 million in the fourth quarter of 2006. The Wagner patent expired in February of 2007.
Hybrid voice-assisted and screen-assisted revenues totaled $8.6 million in the fourth quarter of 2007, up 16.2 percent compared with $7.4 million in the fourth quarter of 2006.
eSpeed's Full Year Revenues
eSpeed reported GAAP revenues of $159.2 million and non-GAAP operating revenues of $158.4 million for the full year 2007. The difference between GAAP and non-GAAP revenues for the year of 2007 reflected $0.8 million in revenues from Aqua.
eSpeed reported GAAP revenues of $164.7 million and non-GAAP operating revenues of $157.6 million for the full year 2006. The difference between GAAP and non-GAAP revenues for the full year 2006 was a gain from insurance proceeds of $3.5 million, a September 11th-related government grant of $3.1 million, and $0.4 million in interest income related to the settlement of a tax-related matter.
Fully electronic revenues were $66.3 million for the full year 2007, compared with $69.0 million in 2006. Excluding $1.3 million in fully electronic revenues related to the Wagner patent recognized in 2007 and $6.2 million recognized in 2006, revenues from eSpeed's fully electronic business were up 3.6 percent in 2007 from $62.8 million in 2006. Revenues from Software Solutions were $47.4 million for the full year 2007 compared with $47.8 million in 2006. Excluding Wagner-related Software Solutions from Unrelated Parties revenues of $1.6 million recorded in 2007 and $11.7 million recorded in 2006, Software Solutions revenues increased by 26.8 percent from $36.1 million in 2006.
Hybrid voice-assisted and screen-assisted revenues totaled $35.7 million in 2007, up 13 percent from $31.7 million in 2006.
See "Non-GAAP Financial Measures" below for a detailed description of the Company's non-GAAP financial measures.
Items Impacting eSpeed's GAAP Revenues and Income
The year-over-year decrease in quarterly GAAP revenues was due primarily to the loss of revenue related to the Wagner patent, partially offset by increases in hybrid screen-assisted and voice-assisted revenues from BGC. The lost net income from the Wagner patent, which totaled $3.1 million for the fourth quarter of 2006, $8.0 million for full year 2006 and $1.9 million for full year 2007, along with the aforementioned expenses related to compensation, litigation, and the BGC acquisition were the primary contributors to eSpeed's wider GAAP net loss in the fourth quarter and full year 2007.
eSpeed's Full Year and Fourth Quarter Cash Flow and Cash
eSpeed used cash flow from operations of $8.8 million during the fourth quarter of 2007, compared with the generation of $6.7 million during the fourth quarter of 2006. For the full year 2007, eSpeed generated cash flow from operations of $18.9 million, compared with $36.8 million in 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 ($19.4) million for the fourth quarter of 2007, compared with ($3.6) million in the prior year period. For the full year 2007 eSpeed's free cash flow was ($23.6) million, compared with $8.6 million in the prior year.
Excluding related party receivables and payables, free cash flow was ($18.4) million for the fourth quarter of 2007 and ($17.1) million for the full year 2007, compared with ($0.4) million for the fourth quarter of 2006 and $14.7 million for the full year 2006.
The above cash flow measures were negatively impacted in the quarter and year primarily by a wider net loss and increased capital expenditures mainly related to the opening of an additional data center.
As of December 31, 2007, eSpeed's cash and cash equivalents, marketable securities, and secured loan receivable(2) totaled $165.2 million. In comparison, as of December 31, 2006, eSpeed's cash and cash equivalents were $187.8 million.
Preliminary BGC Fourth Quarter Results
For the fourth quarter of 2007, BGC's preliminary results were as follows: revenues were approximately $253 million, up 33 percent compared to the prior year quarter's $190 million. BGC recorded pre-tax profits of approximately $20 million compared to a pre-tax loss of $32 million in the prior-year period.
For the fourth quarter of 2007, BGC's revenues in Rates increased by approximately 10 percent, Credit by approximately 27 percent, and Foreign Exchange by approximately 59 percent, all compared to the fourth quarter of 2006. Revenues from Other Asset Classes increased by approximately 462 percent in the fourth quarter of 2007 compared to the year-ago quarter due primarily to the November 2006 acquisition of Aurel Leven.
For the fourth quarter of 2007, Rates represented approximately 41 percent of BGC's revenues, Credit approximately 25 percent, Foreign Exchange approximately 13 percent, and Other Asset Classes approximately 10 percent.
Preliminary BGC Full Year Results
BGC's preliminary results were as follows for the full year 2007: revenues were approximately $1,029 million, up 37 percent compared to $754 million in 2006. BGC recorded pre-tax profits of approximately $101 million for full year 2007 compared to a pre-tax loss of approximately $87 million in the prior year.
For full year 2007, BGC's revenues in Rates increased by approximately 26 percent, Credit by approximately 36 percent, and Foreign Exchange by approximately 53 percent, and Other Asset Classes by approximately 390 percent, all compared to full year 2006.
For full year 2007, Rates represented approximately 49 percent of BGC's revenues, Credit approximately 22 percent, and Foreign Exchange approximately 13 percent, and Other Asset Classes approximately 8 percent.
Outlook for BGC and eSpeed Combined(3)
The Combined Company intends to pursue accretive acquisitions and to continue to profitably increase its brokerage headcount. It also expects to increase the percentage of its revenues from fully electronic trading, Software Solutions and Market Data. The Combined Company believes that these developments would have a significant positive effect on its profit margins and revenues. The outlook for the Combined Company contained in this release does not include the potentially accretive impact of any of these developments.
The Combined Company is expected to generate revenues of approximately $315 million in the first quarter of 2008, up 15 percent from approximately $273 million in the prior year period. The Combined Company expects first quarter 2008 pre-tax income to increase by over 80 percent when compared to the year-ago quarter to the range of $46 million to $49 million.
"Given the highly scalable nature of BGC's global platform and the addition of eSpeed's world-class technology and the integration of BGCantor Market Data, we anticipate tremendous leverage for the Combined Company in the first quarter and full year 2008," said Robert West, who is Chief Financial Officer of BGC and who will hold the same position post-merger. "We expect to see incremental pre-tax margins of 30 percent or more as we continue to leverage the growth of the Combined Company's revenues."
Historically, the businesses have typically generated approximately 52 percent of their revenues and 54 percent of their pre-tax profits in first half of the year, and approximately 48 percent of their revenues and 46 percent of their pre-tax profits in the seasonally slower second half of the year. 2007 was an unusually positive year for inter-dealer brokers and exchanges, however, due to higher than normal market volatility in the second half of the year.
For the full year 2008, the Combined Company's compensation and employee benefits are expected to be between 55 and 60 percent of total revenue. The Combined Company expects non-compensation expenses to be between 28 and 32 percent of total revenue in 2008. The Combined Company anticipates having an effective tax rate of approximately 28 percent in 2008. The Combined Company expects to have an effective tax rate of approximately 32.5 percent for 2009 and thereafter. The Combined Company expects to have a fully diluted average share count of approximately 188 million for 2008.
The above results and outlook includes the elimination of revenues related to inter-company transactions of approximately $50 million in 2007 and a similar figure in 2008, because of amounts that have historically been associated with inter-company revenue sharing transactions that will cease subsequent to the consummation of the proposed merger.
Fourth Quarter and Full Year 2007 Conference Call for Analysts and Investors
eSpeed will host a conference call on Thursday, February 28, 2008 at 8:30 A.M. EST, to discuss the above results and outlook. 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.
---------------------------------------------------------------------- (1) The non-GAAP results for BGC in this release reflect the effects of the full formation and final separation from Cantor and exclude any costs which may be associated with the formation, separation and merger (including, without limitation, redemption of partnership interests) as well as any one time (i) compensation and (ii) other accounting charges associated with transactions to facilitate repayment of loans to executive officers, exchangeability of BGC Holdings units and other structuring features of the formation, separation and merger. For comparison purposes, please see the results for the year ended December 31, 2006 and for the nine months ended September 30, 2007 for "Pro Forma BGC Partners Stand-Alone" as contained in eSpeed's special merger proxy filed with the SEC and dated February 11, 2008. (2) On July 26, 2007, eSpeed entered into a Secured Promissory Note and Pledge Agreement (the "Secured Loan") with Cantor in which eSpeed agreed to lend to Cantor up to $100 million (the "Secured Loan Amount") on a secured basis from time to time. The Secured Loan is guaranteed by a pledge of eSpeed Class A or Class B Common Stock owned by Cantor equal to 125% of the outstanding Secured Loan Amount, as determined on a next day basis. The Secured Loan bears interest at the market rate for equity repurchase agreements plus 0.25% and is payable on demand. The Secured Loan was approved by eSpeed's Audit Committee. At December 31, 2007, the outstanding balance of the Secured Loan was $65 million. (3) The non-GAAP outlook for the Combined Company in this release reflects the effects of the full formation and final separation from Cantor and excludes any costs which may be associated with the formation, separation and merger (including, without limitation, redemption of partnership interests) as well as any one time (i) compensation and (ii) other accounting charges associated with transactions to facilitate repayment of loans to executive officers, exchangeability of BGC Holdings units and other structuring features of the formation, separation and merger. The non-GAAP outlook for the Combined Company also excludes the impact of its minority interest investments, such as Aqua and the new futures exchange discussed in eSpeed's Form 8-K filed with the SEC on December 27, 2007. For comparison purposes, please see the results for the year ended December 31, 2006 and for the nine months ended September 30, 2007 for "Pro Forma BGC Partners Stand-Alone" as contained in eSpeed's special merger proxy filed with SEC and dated February 11, 2008. ---------------------------------------------------------------------- |
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 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.
On May 29, 2007, eSpeed announced that it had entered into an Agreement and Plan of Merger, dated as of May 29, 2007 with BGC Partners, Inc. ("BGC Partners"); Cantor Fitzgerald, L.P. ("Cantor"); BGC Partners, L.P., a Delaware limited partnership; BGC Global Holdings, L.P., a Cayman Islands exempted limited partnership; and BGC Holdings, L.P., a Delaware limited partnership pursuant to which eSpeed will acquire BGC Partners through a merger of BGC Partners with and into eSpeed. For more information, see eSpeed's Report on Form 8-K dated May 29, 2007, and its definitive proxy statement dated February 11, 2008.
About BGC
BGC is a leading inter-dealer broker, providing integrated voice and electronic execution and other brokerage services to banks, brokerage houses and investment banks for a broad range of global financial products including fixed income securities, foreign exchange, equity derivatives, credit derivatives, futures, structured products and other instruments. This is complemented by market data products for selected financial instruments. Named after fixed income trading innovator B. Gerald Cantor, BGC has offices in London, New York, Copenhagen, Istanbul, Nyon, Paris, Mexico City, Toronto, Hong Kong, Seoul, Singapore, Sydney, Tokyo, Beijing (representative office). To learn more, please visit www.bgcpartners.com.
Important Information
In connection with the proposed Merger, the Company filed a definitive proxy statement on February 11, 2008 and related materials with the U.S. Securities and Exchange Commission (the "SEC") for the meeting of stockholders to vote on the proposed Merger. BECAUSE THOSE DOCUMENTS CONTAIN IMPORTANT INFORMATION, HOLDERS OF THE COMPANY'S COMMON STOCK ARE URGED TO READ THEM CAREFULLY. The definitive proxy statement and related materials are available for free (along with any other documents and reports filed by the Company with the SEC) at the SEC's website, www.sec.gov, and at the Company's website, www.espeed.com.
Participant Information
The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the Company's stockholders in connection with the proposed Merger. Certain information regarding the participants and their interests in the solicitation are set forth in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2006, which was filed with the SEC on August 23, 2007, and is set forth in the definitive proxy statement filed with the SEC on February 11, 2008 for the Company's meeting of stockholders to vote on the proposed Merger. Stockholders may obtain additional information regarding the proposed Merger by reading the definitive proxy statement and the related materials relating to the proposed Merger.
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 fourth quarter and full year 2007, the differences between GAAP net loss and non-GAAP net operating income were approximately $19.0 million and $33.5 million, respectively, net of tax, while the difference between GAAP revenues and non-GAAP operating revenues for the full year 2007 was approximately $2.8 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.
Discussion of Forward-Looking Statements
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. 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.
The actual results of eSpeed, BGC or the combined company in the merger ("we", "our" or the "combined company") 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 for eSpeed, BGC and/or the combined company include, but are not limited to, the combined company's relationship with Cantor and its affiliates and any related conflicts of interests, competition for and retention of brokers and other managers and key employees, pricing and commissions and market position with respect to any of our products, and that of the combined company's respective competitors, the effect of industry concentration and consolidation, and market conditions, including trading volume and volatility, as well as economic or geopolitical conditions or uncertainties. Results may also be impacted by the extensive regulation of our respective businesses and risks relating to compliance matters, as well as factors related to specific transactions or series of transactions, including credit, performance and unmatched principal risk as well as counterparty failure. Factors may also include the costs and expenses of developing, maintaining and protecting intellectual property, including judgments or settlements paid or received in connection with intellectual property or employment or other litigation and their related costs, and certain financial risks, including the possibility of future losses and negative cash flow from operations, risks of obtaining financing and risks of the resulting leverage, as well as interest and currency rate fluctuations.
Discrepancies may also result from such factors as the ability to enter new markets or develop new products, trading desks, marketplaces or services and to induce customers to use these products, trading desks, marketplaces or services, to secure and maintain market share, to enter into marketing and strategic alliances, and other transactions, including acquisitions, dispositions, reorganizations, partnering opportunities, and joint ventures, and the integration of any completed transactions, to hire new personnel, to expand the use of technology for screen-assisted, voice-assisted and fully electronic trading and to effectively manage any growth that may be achieved. Results are also subject to risks relating to the proposed merger and separation of the BGC businesses and the relationship between the various entities, financial reporting, accounting and internal control factors, including identification of any material weaknesses in our internal controls, our ability to prepare historical and pro forma financial statements and reports in a timely manner, and other factors, including those that are discussed under "Risk Factors" in eSpeed's Annual Report on Form 10-K/A for the year ended December 31, 2006, which was filed with the SEC on August 23, 2007 and in the definitive proxy statement filed with the SEC on February 11, 2008.
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 (unaudited)
(in thousands, except per share data)
December 31, December 31,
2007 2006
------------ ------------
(Unaudited)
Assets
Cash and cash equivalents $ 38,051 $ 21,838
Reverse repurchase agreements with related
parties 59,806 166,009
------------ ------------
Total cash and cash equivalents 97,857 187,847
Loan receivable from related party 65,000 -
Marketable securities 2,353 -
Fixed assets, net 61,257 57,443
Investments 9,415 7,780
Goodwill 12,184 12,184
Other intangible assets, net 5,578 6,949
Receivable from related parties 17,612 7,145
Other assets 11,899 13,725
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Total assets $ 283,155 $ 293,073
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Payable to related parties $ 10,154 $ 7,751
Accounts payable and accrued liabilities 32,296 24,129
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Total current liabilities 42,450 31,880
Deferred revenue 6,852 8,114
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Total liabilities 49,302 39,994
------------ ------------
Class A common stock, par value $0.01 per
share; 200,000 shares authorized; 36,796
and 36,407 shares issued at December 31,
2007 and December 31, 2006, respectively 368 364
Class B common stock, par value $0.01 per
share; 100,000 shares authorized; 20,498
shares issued at December 31, 2007 and
December 31, 2006, respectively 205 205
Additional paid-in capital 313,238 299,682
Treasury stock, at cost; 6,502 and 6,488
shares of Class A common stock at December
31, 2007 and December 31, 2006 respectively (62,597) (62,597)
Accumulated other comprehensive loss (61) -
Retained (deficit) earnings (17,300) 15,425
------------ ------------
Total stockholders' equity 233,853 253,079
------------ ------------
Total liabilities and stockholders' equity $ 283,155 $ 293,073
============ ============
eSpeed, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME IN ACCORDANCE WITH GAAP (unaudited)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
------------------------- -------------------------
December 31, December 31, December 31, December 31,
Revenues: 2007 2006 2007 2006
------------ ------------ ------------ ------------
Transaction
revenues with
related parties
Fully electronic
transactions
with related
parties $ 15,631 $ 16,101 $ 63,941 $ 62,084
Fully electronic
transactions
with unrelated
parties 417 2,144 2,395 6,937
------------ ------------ ------------ ------------
Total fully
electronic
transactions 16,048 18,245 66,336 69,021
Voice-assisted
brokerage
transactions
with related
parties 6,829 6,015 27,822 26,043
Screen-assisted
open outcry
transactions
with related
parties 1,736 1,413 7,887 5,675
------------ ------------ ------------ ------------
Total
transaction
revenues 24,613 25,673 102,045 100,739
Software
Solutions fees
from related
parties 9,467 7,929 36,414 30,822
Software
Solutions and
licensing fees
from unrelated
parties 1,926 5,696 10,983 16,981
Insurance
recovery - - - 3,500
Grant proceeds - 3,100 - 3,100
Interest income 2,236 2,616 9,773 9,541
------------ ------------ ------------ ------------
Total revenues 38,242 45,014 159,215 164,683
Expenses:
Compensation and
employee
benefits 27,984 12,919 73,219 52,765
Amortization of
software
development
costs and other
intangibles 5,160 5,733 20,331 23,811
Other occupancy
and equipment 10,151 8,871 37,067 37,280
Professional and
consulting fees 4,305 2,690 17,361 9,464
Loss contigency - - 3,500
Impairment of
long-lived
assets 747 1,861 4,757 1,861
Communications
and client
networks 2,606 1,986 9,117 8,101
Marketing 219 110 918 852
Administrative
fees to related
parties 3,494 2,885 13,824 12,598
Amortization of
business partner
and non-employee
securities - - - 19
Acquisition
related costs 1,336 - 6,641 2,026
Other 3,003 2,441 11,247 8,289
------------ ------------ ------------ ------------
Total operating
expenses 59,005 39,496 197,982 157,066
Pre-tax operating
(loss) income (20,763) 5,518 (38,767) 7,617
Income tax
provision
(benefit) 267 2,080 (6,243) 2,965
------------ ------------ ------------ ------------
GAAP net (loss)
income $ (21,030) $ 3,438 $ (32,524) $ 4,652
============ ============ ============ ============
Per share data:
Basic GAAP (loss)
earnings per
share $ (0.42) $ 0.07 $ (0.64) $ 0.09
============ ============ ============ ============
Diluted GAAP
(loss) earnings
per share $ (0.42) $ 0.07 $ (0.64) $ 0.09
============ ============ ============ ============
Basic weighted
average shares
of common stock
outstanding 50,536 50,327 50,466 50,214
============ ============ ============ ============
Diluted weighted
average shares
of common stock
outstanding 50,536 51,453 50,466 51,258
============ ============ ============ ============
eSpeed, Inc. and Subsidiaries
NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
------------------------- -------------------------
December 31, December 31, December 31, December 31,
2007 2006 2007 2006
------------ ------------ ------------ ------------
Revenues:
Transaction
revenues with
related parties
Fully electronic
transactions
with related
parties $ 15,631 $ 16,101 $ 63,941 $ 62,084
Fully electronic
transactions
with unrelated
parties 417 2,144 2,395 6,937
------------ ------------ ------------ ------------
Total fully
electronic
transactions 16,048 18,245 66,336 69,021
Voice-assisted
brokerage
transactions
with related
parties 6,829 6,015 27,822 26,043
Screen-assisted
open outcry
transactions
with related
parties 1,736 1,413 7,887 5,675
------------ ------------ ------------ ------------
Total
transaction
revenues 24,613 25,673 102,045 100,739
Software
Solutions fees
from related
parties 9,467 7,929 36,414 30,822
Software
Solutions and
licensing fees
from unrelated
parties 1,926 5,696 10,168 16,981
Interest income 2,236 2,614 9,773 9,104
------------ ------------ ------------ ------------
Total non-GAAP
revenues 38,242 41,912 158,400 157,646
------------ ------------ ------------ ------------
Expenses:
Compensation and
employee
benefits 15,707 12,918 60,430 52,728
Amortization of
software
development
costs and other
intangible
assets 5,161 5,734 20,008 22,649
Other occupancy
and equipment 10,151 8,663 36,291 33,166
Professional and
consulting fees 1,480 1,967 6,860 6,354
Communications
and client
networks 2,605 1,986 9,059 8,101
Marketing 218 110 918 852
Administrative
fees to related
parties 3,494 2,885 13,574 12,598
Other 2,560 2,441 9,635 8,600
------------ ------------ ------------ ------------
Total non-GAAP
operating
expenses 41,376 36,704 156,775 145,048
------------ ------------ ------------ ------------
Pre-tax operating
(loss) income (3,134) 5,208 1,625 12,598
Income tax
(benefit)
provision (1,119) 1,878 686 4,764
------------ ------------ ------------ ------------
Net operating
(loss) income (2,015) 3,330 939 7,834
------------ ------------ ------------ ------------
Non-operating
income (loss):
Amortization of
business partner
and non-employee
securities, net
of tax - - - (11)
Litigation costs,
net of tax (3,500) (500) (10,683) (1,985)
Legal settlement,
net of tax - - - 458
Compensation
costs, net of
tax (12,277) - (12,277) -
Acquisition
related costs,
net of tax (1,754) - (5,122) (1,260)
Impairment of
long-lived
assets, net of
tax (965) (1,186) (3,504) (1,186)
Loss on
investment, net
of tax (519) - (1,563) -
Accelerated
amortization,
net of tax - - - (689)
Office relocation
cost, net of tax - (130) - (2,490)
Tax settlement,
net of tax - - - 226
Grant income, net
of tax - 1,924 - 1,924
Insurance
recovery, net of
tax - - - 2,073
Charitable
contribution Re:
9/11, net of tax - - (314) (242)
- -
------------ ------------ ------------ ------------
Total non-
operating
(loss) income (19,015) 108 (33,463) (3,182)
------------ ------------ ------------ ------------
GAAP net (loss)
income $ (21,030) $ 3,438 $ (32,524) $ 4,652
============ ============ ============ ============
Per share data:
Basic pre-tax
operating (loss)
income per share $ (0.06) $ 0.10 $ 0.03 $ 0.25
Basic tax
(benefit)
provision per
share $ (0.02) $ 0.04 $ 0.01 $ 0.09
------------ ------------ ------------ ------------
Basic net
operating (loss)
income per share $ (0.04) $ 0.07 $ 0.02 $ 0.16
Basic non-
operating (loss)
per share $ (0.38) $ 0.00 $ (0.66) $ (0.06)
------------ ------------ ------------ ------------
Basic GAAP (loss)
income per share $ (0.42) $ 0.07 $ (0.64) $ 0.09
============ ============ ============ ============
Diluted pre-tax
operating (loss)
income per share $ (0.06) $ 0.10 $ 0.03 $ 0.25
Diluted tax
(benefit)
provision per
share $ (0.02) $ 0.04 $ 0.01 $ 0.09
------------ ------------ ------------ ------------
Diluted net
operating (loss)
income per share $ (0.04) $ 0.06 $ 0.02 $ 0.15
Diluted non-
operating (loss)
per share $ (0.38) $ 0.00 $ (0.66) $ (0.06)
------------ ------------ ------------ ------------
Diluted GAAP
(loss) income
per share $ (0.42) $ 0.07 $ (0.64) $ 0.09
============ ============ ============ ============
Basic weighted
average shares
of common stock
outstanding 50,536 50,327 50,466 50,214
============ ============ ============ ============
Diluted weighted
average shares
of common stock
outstanding 50,536 51,453 50,466 51,258
============ ============ ============ ============
Additional data:
Pre-tax operating
margin -8.2% 12.4% 1.0% 8.0%
============ ============ ============ ============
eSpeed, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- ---------------------
2007 2006 2007 2006
--------- --------- ----------- ---------
(Unaudited)
Cash flows from operating
activities:
Net (loss) income $(21,030) $ 3,438 $ (32,524) $ 4,652
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization 8,461 8,901 32,020 36,465
Insurance recovery from
related parties - - - (3,500)
Impairment of long lived
assets 743 1,861 4,753 1,861
Equity in net loss of
unconsolidated
investments 449 (5) 862 (38)
Deferred income tax
expense 2,129 808 (4,663) (33)
Stock-based compensation 10,422 699 12,935 2,418
Tax benefit from stock-
based compensation 240 199 284 305
Excess tax benefits from
stock-based compensation - 36 (49) (11)
Loss on disposal of
property - 127 - 127
Deferred compensation plan
expense - 138 - 138
Recognition of deferred
revenue (1,497) (4,435) (5,412) (7,292)
Changes in operating assets
and liabilities:
Receivable from related
parties (3,287) (2,029) (10,467) (2,773)
Other assets 1,244 (568) - (5,141)
Payable to related parties 2,258 2,278 3,964 163
Accounts payable and
accrued expenses (10,167) (5,675) 12,999 6,057
Deferred income 1,280 880 4,150 3,397
--------- --------- ----------- ---------
Net cash (used in)
provided by operating
activities (8,755) 6,653 18,852 36,795
--------- --------- ----------- ---------
Cash flows used in investing
activities:
Secured loan to related
party 15,000 - (65,000) -
Insurance proceeds from
related parties - - - 3,500
Purchase of fixed assets (5,786) (4,486) (18,730) (13,241)
Purchase of marketable
securities 67 - (2,414) -
Capitalization of software
development costs (5,530) (5,555) (21,678) (17,213)
Capitalization of patent
defense and registration
costs (173) (259) (1,505) (1,270)
Decrease in restricted
cash - - 1,827
Purchase of investment (613) - (1,363)
--------- --------- ----------- ---------
Net cash provided by (used
in) investing activities 2,965 (10,300) (108,863) (28,224)
--------- --------- ----------- ---------
Cash flows provided by
financing activities:
Repurchase of Class A
common stock - (93) (373) (93)
Proceeds from exercises of
stock options and
warrants 648 925 813 1,346
Excess tax benefit from
stock based compensation - (36) 49 11
Cancellation of restricted
stock units in
satifaction of
withholding tax
requirements (468) (423) (468) (423)
--------- --------- ----------- ---------
Net cash provided by
financing activities 180 373 21 841
--------- --------- ----------- ---------
Net (decrease) increase in
cash and cash equivalents (5,610) (3,274) (89,990) 9,412
--------- --------- ----------- ---------
Cash and cash equivalents at
beginning of period 11,141 94,149 21,838 37,070
Reverse repurchase
agreements with related
parties at beginning of
period 92,326 96,972 166,009 141,365
--------- --------- ----------- ---------
Total cash and cash
equivalents at beginning of
period 103,467 191,121 187,847 178,435
--------- --------- ----------- ---------
Cash and cash equivalents at
end of period 38,051 21,838 38,051 21,838
Reverse repurchase
agreements with related
parties at end of period 59,806 166,009 59,806 166,009
--------- --------- ----------- ---------
Total cash and cash
equivalents at end of
period $ 97,857 $187,847 $ 97,857 $187,847
========= ========= =========== =========
Supplemental cash
information:
Cash paid for income taxes - $ 1,986 $ 122 $ 2,131
Deemed dividend to Cantor - $ 1,500 - $ 1,500
Contribution of license from
Cantor - $ 1,500 - $ 1,500
Supplemental disclosure of
non-cash investing
activities: - - - -
Contribution of net fixed
assets to related party $ (583) - $ (1,134) -
eSpeed, Inc. & Subsidiaries
CONSOLIDATED STATEMENTS OF FREE CASH FLOWS (unaudited)
(in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2007 2006 2007 2006
--------- -------- --------- ---------
Non-GAAP income before income
taxes $ (3,134) $ 5,208 $ 1,625 $ 12,598
Depreciation and amortization 8,461 8,901 32,020 36,465
Other non-cash and non-
operating items (7,390) 2,766 (27,303) (7,388)
--------- -------- --------- ---------
Non-GAAP (loss) income before
income taxes adjusted for
depreciation, amortization and
other (2,063) 16,875 6,342 41,675
--------- -------- --------- ---------
Benefit (provision) for income
taxes on non-GAAP operating
income 1,119 (1,878) (686) (4,764)
Income tax provision on non-
operating income (1,386) (202) 6,929 1,799
Deferred income tax expense 2,129 808 (4,663) (33)
Tax benefit from stock-based
compensation 240 199 284 305
Income taxes paid - 1,986 122 2,131
--------- -------- --------- ---------
Increase (decrease) in current
income tax payable 2,102 913 1,986 (562)
Changes in related party
receivable and payable, net (1,029) (3,251) (6,503) (6,110)
Changes in other operating
assets and liabilities, net (7,765) (7,495) 17,027 2,181
Charitable contribution Re:
9/11 - (389) - (389)
--------- -------- --------- ---------
Net cash (used in)
provided by operating
activities (8,755) 6,653 18,852 36,795
--------- -------- --------- ---------
Insurance proceeds from related
parties - - - 3,500
Purchase of fixed assets (5,786) (4,486) (18,730) (13,241)
Purchase of marketable
securities 67 - (2,414) -
Capitalization of software
development costs (5,530) (5,555) (21,678) (17,213)
Capitalization of patent
defense and registration costs (173) (259) (1,505) (1,270)
Purchase of investment 750 - - -
Decrease in restricted cash - - 1,827 -
--------- -------- --------- ---------
Free cash flows (19,427) (3,647) (23,648) 8,571
--------- -------- --------- ---------
Related party receivable and
payable, net 1,029 3,251 6,503 6,110
--------- -------- --------- ---------
Free cash flows, net of
related party activity $(18,398) $ (396) $(17,145) $ 14,681
========= ======== ========= =========
eSpeed, Inc. and Subsidiaries
RECONCILIATION of NON-GAAP FINANCIAL MEASURES TO GAAP (unaudited)
(in thousands)
Three Months Ended Twelve Months Ended
----------------------- -----------------------
December 31 December 31 December 31 December 31
2007 2006 2007 2006
----------- ----------- ----------- -----------
Revenues $ 38,242 $ 41,912 $ 158,400 $ 157,646
Insurance recovery (a) - - - 3,500
Grant proceeds (b) - 3,100 - 3,100
Tax settlement (c) - - - 399
Legal settlement (d) - 2 38
eSpeed Equities (e) - - 815 -
----------- ----------- ----------- -----------
GAAP revenues $ 38,242 $ 45,014 $ 159,215 $ 164,683
----------- ----------- ----------- -----------
Operating expenses $ 41,376 $ 36,704 $ 156,775 $ 145,048
Amortization of
business partner and
non-employee
securities (f) - - - 19
Litigation costs (g) 2,825 725 14,001 3,112
Tax settlement (h) - - - 36
Legal settlement (i) - - - (700)
Accelereated
amortization (j) - - - 1,162
Office relocation
costs (k) - 208 - 4,115
Compensation Costs (l) 12,277 - 12,277 -
Acquisition related
costs (m) 1,341 (2) 6,645 2,024
Impairment of long
lived assets (n) 745 1,861 4,755 1,861
Charitable
contribution Re:
9/11(o) - - 628 389
Loss on investment (p) 441 - 2,901 -
----------- ----------- ----------- -----------
GAAP expenses $ 59,005 $ 39,496 $ 197,982 $ 157,066
----------- ----------- ----------- -----------
Pre-tax operating
income $ (3,134) $ 5,208 $ 1,625 $ 12,598
Sum of reconciling
items =
(a)+(b)+(c)+(d)+(e)-
(f)-(g)-(h)-(i)-(j)-
(k)-(l)-(m)-(n)-(o)-
(p) (17,629) 310 (40,392) (4,981)
----------- ----------- ----------- -----------
GAAP (loss) income
before income tax
provision $ (20,763) $ 5,518 $ (38,767) $ 7,617
----------- ----------- ----------- -----------
Non-GAAP provision for
income taxes $ (1,119) $ 1,878 $ 686 $ 4,764
Income tax
benefit/expense on
non-operating income
(q) 1,386 202 (6,929) (1,799)
----------- ----------- ----------- -----------
GAAP provision for
income taxes $ 267 $ 2,080 $ (6,243) $ 2,965
----------- ----------- ----------- -----------
Non-GAAP net operating
income $ (2,015) $ 3,330 $ 939 $ 7,834
Sum of reconciling
items =
(a)+(b)+(c)+(d)+(e)-
(f)-(g)-(h)-(i)-(j)-
(k)-(l)-(m)-(n)-(o)-
(p)-(q) (19,015) 108 (33,463) (3,182)
----------- ----------- ----------- -----------
GAAP net income $ (21,030) $ 3,438 $ (32,524) $ 4,652
----------- ----------- ----------- -----------
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.
------------------------------------
4Q06 1Q07 2Q07
------------------------------------
Volume (in billions)
----------------------------------
Fully Electronic Volume -
Excluding New Products 9,813 11,809 10,281
Fully Electronic Volume - New
Products* 1,335 1,415 1,066
------------------------------------
Total Fully Electronic Volume 11,148 13,224 11,347
Voice-Assisted Volume 7,933 8,884 9,820
Screen-Assisted Volume 6,111 7,486 7,317
------------------------------------
Total Voice/Screen-Assisted
Volume 14,044 16,370 17,137
------------------------------------
Total Volume 25,192 29,594 28,484
====================================
Transaction Count
----------------------------------
Fully Electronic Transactions -
Excluding New Products 1,764,930 2,062,341 1,749,219
Fully Electronic Transactions -
New Products* 142,239 144,378 153,673
------------------------------------
Total Fully Electronic
Transactions 1,907,169 2,206,719 1,902,892
Voice-Assisted Transactions 177,789 201,250 209,504
Screen-Assisted Transactions 62,977 92,496 114,320
------------------------------------
Total Voice/Screen-Assisted
Volume 240,766 293,746 323,824
------------------------------------
Total Transactions 2,147,935 2,500,464 2,226,716
====================================
Trading Days 62 62 64
* 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 129,828,448 161,232,523 171,180,151
CME - Euro $ Contracts 130,341,959 152,724,717 148,244,973
EUREX - Bund Contracts 74,001,534 88,987,126 88,867,284
Fed UST Primary Dealer Volume (in
billions) (2)
UST Volume 30,742 34,437 33,100
Average Daily UST Volume 496 555 517
NYSE - Volume (shares traded) - in
millions (3) 114,434 123,765 127,755
Transaction Value - in millions 4,316,756 4,943,056 5,339,909
NASDAQ - Volume (shares traded) -
in millions (4) 121,477 131,410 134,007
Transaction Value - in millions 2,945,401 3,300,788 3,526,949
% Change % Change
-------------------------------------------
4Q07 vs 4Q07 vs
3Q07 4Q07 3Q07 4Q06
-------------------------
Volume (in billions)
--------------------------
Fully Electronic Volume -
Excluding New Products 12,689 11,364 (10.4%) 15.8%
Fully Electronic Volume -
New Products* 990 1,335 34.8% (0.0%)
-------------------------------------------
Total Fully Electronic
Volume 13,679 12,699 (7.2%) 13.9%
Voice-Assisted Volume 10,883 9,769 (10.2%) 23.2%
Screen-Assisted Volume 8,438 7,503 (11.1%) 22.8%
-------------------------------------------
Total Voice/Screen-
Assisted Volume 19,321 17,272 (10.6%) 23.0%
-------------------------------------------
Total Volume 33,000 29,971 (9.2%) 19.0%
===========================================
Transaction Count
--------------------------
Fully Electronic
Transactions - Excluding
New Products 2,660,756 2,810,937 5.6% 59.3%
Fully Electronic
Transactions - New
Products* 128,425 125,631 (2.2%) (11.7%)
-------------------------------------------
Total Fully Electronic
Transactions 2,789,181 2,936,568 5.3% 54.0%
Voice-Assisted
Transactions 216,436 202,500 (6.4%) 13.9%
Screen-Assisted
Transactions 119,370 116,826 (2.1%) 85.5%
-------------------------------------------
Total Voice/Screen-
Assisted Volume 335,806 319,326 (4.9%) 32.6%
-------------------------------------------
Total Transactions 3,124,987 3,255,894 4.2% 51.6%
===========================================
Trading Days 63 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 190,159,708 169,104,983 (11.1%) 30.3%
CME - Euro $ Contracts 180,358,177 140,142,461 (22.3%) 7.5%
EUREX - Bund Contracts 91,302,644 72,162,362 (21.0%) (2.5%)
Fed UST Primary Dealer
Volume (in billions) (2)
UST Volume 39,414 35,044 (11.1%) 14.0%
Average Daily UST Volume 626 565 (9.7%) 14.0%
NYSE - Volume (shares
traded) - in millions (3) 145,470 135,045 (7.2%) 18.0%
Transaction Value - in
millions 6,015,397 5,577,200 (7.3%) 29.2%
NASDAQ - Volume (shares
traded) - in millions (4) 136,916 139,202 1.7% 14.6%
Transaction Value - in
millions 3,896,657 4,536,801 16.4% 54.0%
% Change
----------- --------------------
2007 2006 07 vs 06
----------- -----------
Volume (in billions)
------------------------------------
Fully Electronic Volume - Excluding
New Products 46,143 38,385 20.2%
Fully Electronic Volume - New
Products* 4,806 3,783 27.1%
----------- --------------------
Total Fully Electronic Volume 50,949 42,168 20.8%
Voice-Assisted Volume 39,357 32,860 19.8%
Screen-Assisted Volume 30,744 22,887 34.3%
----------- --------------------
Total Voice/Screen-Assisted
Volume 70,101 55,747 25.8%
----------- --------------------
Total Volume 121,050 97,915 23.6%
=========== ====================
Transaction Count
------------------------------------
Fully Electronic Transactions -
Excluding New Products 9,283,253 7,459,514 24.4%
Fully Electronic Transactions - New
Products* 552,107 552,899 (0.1%)
----------- ----------- --------
Total Fully Electronic
Transactions 9,835,360 8,012,413 22.8%
Voice-Assisted Transactions 829,690 792,159 4.7%
Screen-Assisted Transactions 443,012 268,894 64.8%
----------- ----------- --------
Total Voice/Screen-Assisted
Volume 1,272,702 1,061,053 19.9%
----------- ----------- --------
Total Transactions 11,108,062 9,073,466 22.4%
=========== =========== ========
Trading Days
* 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 691,677,365 512,163,874 35.1%
CME - Euro $ Contracts 621,470,328 502,077,391 23.8%
EUREX - Bund Contracts 341,319,416 319,889,369 6.7%
Fed UST Primary Dealer Volume (in
billions) (2)
UST Volume 141,994 131,410 8.1%
Average Daily UST Volume 566 526 7.6%
NYSE - Volume (shares traded) - in
millions (3) 532,035 453,289 17.4%
Transaction Value - in millions 21,875,562 16,958,552 29.0%
NASDAQ - Volume (shares traded) - in
millions (4) 541,535 500,708 8.2%
Transaction Value - in millions 15,261,194 11,635,148 31.2%
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
---------------------------------------------------------------
2008
---------------------------------------------------------------
Q1 Q2 Q3 Q4
----------- ------------ ------------- ------------
61 64 64 62
2007
---------------------------------------------------------------
Q1 Q2 Q3 Q4
----------- ------------ ------------- ------------
62 64 63 62
2006
---------------------------------------------------------------
Q1 Q2 Q3 Q4
----------- ------------ ------------- ------------
62 63 63 62
----------- ------------ ------------- ------------
|
SOURCE: eSpeed, Inc.
eSpeed, Inc. U.K. Media: Timo Kindred, 44-(0)207-894-7292 tkindred@bgcpartners.com or U.S. Media: Florencia Panizza, 212-294-7938 fpanizza@bgcpartners.com or Robert Hubbell, 212-294-7820 rhubbell@espeed.com or Investors: Jason McGruder, 212-829-4988 jmcgruder@espeed.com