This excerpt taken from the NDAQ 8-K filed Feb 13, 2007.
- OPERATING INCOME UP 105.1% FROM PRIOR YEAR -
New York, N.Y.The Nasdaq Stock Market, Inc. (NASDAQ®; Nasdaq: NDAQ), today reported fourth quarter 2006 net income of $63.0 million, or $0.43 per diluted share, an increase of $45.9 million from $17.1 million, or $0.15 per diluted share, in the fourth quarter of 2005, and an increase of $32.8 million from $30.2 million, or $0.22 per diluted share, in the third quarter of 2006.
Net income for the full year 2006 was $127.9 million, or $0.95 per diluted share, versus net income of $61.7 million, or $0.57 per diluted share, for the full year 2005. Included in fourth quarter 2006 net income is a $29.4 million gain, net of tax, on foreign currency option contracts purchased to hedge the foreign exchange exposure on the acquisition bid for the London Stock Exchange. This gain had the impact of increasing diluted earnings per share by $0.19 in the quarter.
Operating income was $68.1 million for the fourth quarter of 2006, an increase of $34.9 million, or 105.1% when compared to $33.2 million for the fourth quarter of 2005, and up slightly from $67.9 million for the third quarter 2006. Operating income for the full year was $214.1 million, an increase of 88.3% when compared to $113.7 million for the full year 2005.
Gross margin, representing total revenues less cost of revenues, was $183.1 million in the fourth quarter of 2006, an increase of 32.1% from $138.6 million in the year-ago period, and up 7.0% from $171.2 million reported in the third quarter of 2006. Gross margin for the full year 2006 was $687.4 million, an increase of 30.7% from $526.0 million in 2005.
Our strong financial results point to the success that we achieved in 2006, commented NASDAQs Chief Executive Officer, Robert Greifeld. During the year we began operations as a national securities exchange, completed the migration of Nasdaq-listed stocks to a single trading platform, increased our share of U.S. equity trading and initial public offerings, and continued to increase the value proposition for listing on NASDAQ by offering more products and services.
Mr. Greifeld concluded, We enter 2007 with a stronger core business that will support our new growth initiatives to increase revenue and profitability. We plan to achieve this by gaining market share and through new initiatives such as our planned options exchange and Portal market.