This excerpt taken from the NDAQ 8-K filed Jul 28, 2005.
and 6.6% Total Expense Reduction
New York, N.Y.The NASDAQ Stock Market, Inc. (NASDAQ®; Nasdaq: NDAQ), today reported net income of $14.0 million, or $0.13 per diluted share, for the second quarter 2005, an increase of $9.2 million when compared to net income of $4.8 million, or $0.02 per diluted share, for the second quarter 2004, and an increase of 10.2% from net income of $12.7 million, or $0.13 per diluted share, for the first quarter 2005.
Gross margin, which represents total revenues less cost of revenues, was $130.4 million for the second quarter 2005, an increase of 8.7% from $120.0 million in the year ago period, and an increase of 3.2% from $126.3 million in the first quarter 2005.
Included in second quarter 2005 total expenses are $5.9 million of pre-tax charges associated with NASDAQs continuing efforts to improve efficiencies and reduce operating expenses. Additionally, second quarter 2005 results included a pre-tax charge of $7.4 million related to the restructuring of the $240 million Subordinated Notes in connection with the financing of the INET acquisition. These items, in total, reduced diluted earnings per share by $0.08 for the second quarter 2005.
NASDAQs Chief Executive Officer, Robert Greifeld, commented, NASDAQs consecutive string of strong quarters demonstrates the continued execution of our plan to improve profitability. For the third straight quarter weve been able to grow the top line and improve net income. And weve made these improvements while successfully integrating Brut into our operations, which has laid the groundwork for the acquisition of INET. Looking into the second half of the year, NASDAQ remains squarely focused on continuing to strengthen the competitiveness of our business model.