This excerpt taken from the NDAQ 8-K filed Jul 20, 2006.
- GROSS MARGIN INCREASES FOR SEVENTH CONSECUTIVE QUARTER -
New York, N.Y.The Nasdaq Stock Market, Inc. (NASDAQ®; Nasdaq: NDAQ), today reported second quarter 2006 net income of $16.6 million, or $0.13 per diluted share versus $14.0 million or $0.13 per diluted share in the second quarter of 2005, and $18.0 million or $0.16 per diluted share in the first quarter of 2006.
Second quarter 2006 results include the following pre-tax items:
The impact of these items on net income was $13.0 million or $0.09 per diluted share.
Gross margin, representing total revenues less cost of revenues, was $171.1 million in the second quarter of 2006, an increase of 31.2% from $130.4 million in the year-ago period, and an increase of 5.6% from $162.0 million in the first quarter of 2006. Second quarter 2006 represents the seventh consecutive quarter of gross margin growth.
NASDAQs Chief Executive Officer, Robert Greifeld commented, Solid execution of our growth strategy throughout the organization drove NASDAQs strong top line performance. During the quarter our trading systems continued to handle more market share and we further increased our potential for future growth through the introduction of new products and services such as the Global Select Market, the IPO Cross, and NASDAQ Market Velocity. This continued progress enhances our already strong competitive position. Looking into the second half of 2006, we are maintaining our consistent focus on innovation and execution that anticipates and responds to the needs of our customers.