This excerpt taken from the NDAQ 8-K filed May 8, 2008.
Net Interest Income
Net interest expense was $11.3 million for the first quarter of 2008, compared with net interest expense of $21.1 million for the first quarter of 2007. The decline in net interest expense is primarily due to lower average net debt, lower interest rates, and higher cash balances in the most recent quarter.
This excerpt taken from the NDAQ 8-K filed Jan 31, 2008.
Net interest income
Net interest income was $12.4 million for the fourth quarter of 2007, compared with net interest expense of $18.3 million for the fourth quarter of 2006, representing an increase of $30.7 million. This increase was primarily due to additional interest income on higher cash balances due to the cash proceeds received from the sale of our share capital of the London Stock Exchange plc and lower interest expense on debt due to a lower outstanding balance. In September 2007, NASDAQ used $1.1 billion of the $1.8 billion of proceeds from the sale of our share capital of the London Stock Exchange Group plc to repay in full and terminate outstanding debt obligations.
Earnings Per Share
Fourth quarter earnings per diluted share were $0.52 versus $0.43 per diluted share in the prior year quarter, and $2.41 in the third quarter of 2007. Included in third quarter 2007 results are pre-tax gains associated with NASDAQs sale of its share capital of the London Stock Exchange Group plc, noted above. NASDAQs weighted average shares outstanding used to calculate diluted earnings per share were 154.0 million in the fourth quarter of 2007 versus 152.1 million in the year-ago quarter and 152.3 million in the third quarter of 2007.
NASDAQ is the largest U.S. equities exchange. With over 3,100 companies, it lists more companies and, on average, trades more shares per day than any other U.S. market. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks as well as a leading liquidity pool for trading NYSE-listed stocks. For more information about NASDAQ, visit the NASDAQ Web site at www.nasdaq.com or the NASDAQ Newsroom at www.nasdaq.com/newsroom/
In addition to disclosing results determined in accordance with U.S. generally accepted accounting principles (GAAP), NASDAQ also discloses certain non-GAAP results of operations, including total expenses, operating income, net income and diluted earnings per share, that exclude certain charges and gains that are described in the reconciliation table of non-GAAP to GAAP information provided at the end of this release. Management believes that this non-GAAP information provides investors with additional information to assess NASDAQs operating performance by excluding these costs and gains and assists investors in comparing our operating performance to prior periods. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance.
The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.
Cautionary Note Regarding Forward-Looking Statements
Information set forth in this communication contains forward-looking statements, which involve a number of risks and uncertainties. NASDAQ cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to, projections about our future financial results and statements about the implementation dates and benefits of certain strategic initiatives, including the transactions contemplated by NASDAQs agreements with Borse Dubai, OMX AB, the Boston Stock Exchange and the Philadelphia Stock Exchange, and other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQs control. These factors include, but are not limited to, NASDAQs ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in NASDAQs filings with the U.S. Securities Exchange Commission, including its annual report on Form 10-K for the fiscal year ending December 31, 2006 which is available on NASDAQs website at http://www.nasdaq.com and the SECs website at www.sec.gov. NASDAQ undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
(GAAP reconciliation table)