This excerpt taken from the NDAQ 8-K filed Jan 31, 2008.
- OPERATING INCOME UP 49.2% FROM PRIOR YEAR -
New York, N.Y.The Nasdaq Stock Market, Inc. (NASDAQ®; NASDAQ: NDAQ), today reported fourth quarter 2007 net income of $79.0 million, or $0.52 per diluted share, an increase of $16.0 million from $63.0 million, or $0.43 per diluted share, in the fourth quarter of 2006. Net income for the fourth quarter 2007 declined when compared to $365.0 million, or $2.41 per diluted share, reported in the third quarter 2007. Net income for the full year 2007 increased to $518.4 million, or $3.46 per diluted share, when compared to net income applicable to common stockholders of $127.2 million, or $0.95 per diluted share, for the full year 2006. Included in third quarter and full year 2007 results are pre-tax gains of $431.4 million associated with NASDAQs sale of its share capital of the London Stock Exchange Group plc, which had the impact of increasing diluted earnings per share by $1.95 for both periods.
Fourth quarter 2007 results include pre-tax gains of $18.2 million related to foreign currency option contracts, as well as pre-tax charges of $1.1 million related to the early extinguishment of debt and $0.6 million in workforce reduction expenses. When excluding these items net income on a non-GAAP basis was $69.1 million, or $0.46 per diluted share. This represents an increase when compared to non-GAAP net income of $32.5 million, or $0.23 per diluted share for the fourth quarter of 2006, and $62.1 million, or $0.42 per diluted share for the third quarter of 2007.
Revenues less liquidity rebates, brokerage, clearance and exchange fees (net exchange revenues) were $211.6 million in the fourth quarter of 2007, an increase of 15.6% from $183.1 million in the year-ago period, and up $1.6 million from $210.0 million reported in the third quarter of 2007.
Our fourth quarter results cap off a truly defining year for NASDAQ, commented Bob Greifeld, NASDAQs President and Chief Executive Officer. During 2007 we were able to dramatically improve our financial and operational performance, leaving us stronger and better positioned for future success. We solidified our global footprint with the agreement to combine with OMX and invest strategically into the emerging markets of the Middle East. Additionally, we took steps to diversify our business into derivatives, clearing and other new products through the planned acquisitions of both the Philadelphia and Boston Stock Exchanges and through OMXs announced acquisition of NordPool. As we enter 2008, we are even more excited about the opportunities in front of us as we execute our plans for geographic expansion and product diversification.