ESPD Espeed (MM)

eSpeed, Inc. (NASDAQ: ESPD), a leading developer of electronic marketplaces and related trading technology for the global capital markets, today reported results for the first quarter ended March 31, 2006. First Quarter 2006 Earnings eSpeed reported net income of $2.0 million, or $0.04 per diluted share, for the first quarter of 2006 based on Generally Accepted Accounting Principles (GAAP). To reflect earnings generated from the Company's operations, eSpeed also reports non-GAAP net operating income. For the first quarter of 2006, the Company reported non-GAAP net operating income of $1.4 million, or $0.03 per diluted share. The difference between non-GAAP net operating income and GAAP net income for the quarter occurred primarily due to a gain from insurance proceeds of $2.1 million and a settlement of a tax-related matter of $0.1 million, partially offset by $0.7 million in accelerated amortization of capitalized software, $0.4 million in patent litigation costs, and $0.4 million in expenses relating to the relocation of the Company's London office. All of these differences were net of tax. For comparative purposes, eSpeed reported GAAP net income of $1.3 million, or $0.02 per diluted share, for the first quarter of 2005. For the same period, the Company reported non-GAAP net operating income of $2.7 million, or $0.05 per diluted share. The difference between non-GAAP net operating income and GAAP net income for the first quarter of 2005 was due to $1.3 million for patent litigation costs and a non-cash charge of $0.1 million related to business partner securities. All of these differences were net of tax. First Quarter 2006 Revenues eSpeed's total GAAP revenues for the first quarter of 2006 were $42.6 million. For the same period, eSpeed also reported non-GAAP operating revenues of $38.7 million. The difference between GAAP and non-GAAP revenues for the first quarter of 2006 was due to a $3.5 million gain from insurance proceeds and $0.4 million in interest income related to the settlement of a tax-related matter. The Company reported GAAP and non-GAAP total revenues of $38.9 million for the first quarter of 2005. Fully electronic revenues were $16.7 million in the first quarter of 2006 compared to $20.4 million for the first quarter of 2005. Revenues from Software Solutions in the first quarter of 2006 were $11.3 million versus $10.3 million in the year ago period. Voice assisted and screen assisted revenues totaled $8.7 million in the first quarter of 2006 versus $6.9 million in the first quarter of 2005. Non-GAAP pre-tax operating margin was 6.0 percent in the first quarter of 2006. See "Non-GAAP Financial Measures" below for a detailed description of the Company's non-GAAP financial measures. First Quarter 2006 Volume and Transactions on the eSpeed System Fully electronic volume on the eSpeed system, excluding new products, was $9.0 trillion for the first quarter of 2006, up 19.4 percent from $7.5 trillion in the fourth quarter of 2005 and up 40.3 percent from $6.4 trillion in the first quarter of 2005. This compares to a sequential increase of 6.1 percent and a year-over-year increase of 0.7 percent in overall quarterly US Treasury volume as reported by the Federal Reserve. Average daily Federal Reserve US Treasury volume was $561 billion for the first quarter of 2006. eSpeed's voice-assisted volume for the first quarter of 2006 was $8.1 trillion, an increase of 6.4 percent versus the $7.6 trillion reported in the fourth quarter of 2005 and an increase of 71.2 percent over the $4.7 trillion reported in the first quarter of 2005. Fully electronic volume on the eSpeed system for new products, which the Company defines as foreign exchange, interest rate swaps, futures and repos, was $524 billion for the first quarter of 2006, compared to $540 billion in the fourth quarter of 2005 and $436 billion in the first quarter of 2005. This represented a sequential decrease of 2.8 percent and a year over year increase of 20.2 percent. Volume for the eSpeed Equities direct access product was 203 million shares for the first quarter of 2006, up against the 147 million shares traded in the fourth quarter of 2005 and the 168 million shares traded in the first quarter of 2005. Cash Flow & Cash eSpeed generated cash flow from operations of $5.1 million during the first quarter of 2006, compared with $1.1 million during the comparable period in 2005. The Company also reports free cash flow, which it defines as cash from operations less net cash used in investing activities. eSpeed's free cash flow was ($1.5) million for the first quarter of 2006 and ($8.6) million in the year-earlier period. Excluding related party receivables and payables, free cash flow for the first quarter of 2006 was $4.9 million compared with ($5.4) million in the first quarter of 2005. As of March 31, 2006, eSpeed's cash and cash equivalents were approximately $177.2 million. Outlook For the second quarter of 2006, eSpeed expects to generate non-GAAP operating revenues in excess of $38 million and expects non-GAAP net operating income to be in the range of $0.02 to $0.03 per diluted share. The Company expects the average daily Federal Reserve US Treasury volume to be between $550 billion and $565 billion for the second quarter of 2006. For full year 2006, eSpeed still expects to generate non-GAAP operating revenues in excess of $152 million, although the Company now expects operating expenses to be in the range of $144 million to $147 million and for non-GAAP net operating income to be in the range of $0.07 to $0.10 per diluted share. eSpeed's previous full year 2006 outlook had been for operating expenses to be in the range of $147 million to $150 million and non-GAAP net operating income to be in the range of $0.02 to $0.06 per diluted share. The Company will host a conference call on Wednesday, May 10, 2006 at 8:30 a.m EDT, to discuss the above results. To listen to the call via audio webcast, please visit www.espeed.com. Please note: listeners must have a Real Media or Windows Media plug in and headphones or speakers to listen to the webcast. Non-GAAP Financial Measures To supplement eSpeed's consolidated financial statements presented in accordance with GAAP and to better reflect the Company's quarter-over-quarter and comparative year-over-year operating performance, eSpeed uses non-GAAP financial measures of revenues, net income and earnings per share, which are adjusted to exclude certain expenses and gains. In addition, the Company provides a computation of free cash flow. These non-GAAP financial measurements do not replace the presentation of eSpeed's GAAP financial results but are provided to improve overall understanding of the Company's current financial performance and its prospects for the future. Specifically, eSpeed believes the non-GAAP financial results provide useful information to both management and investors regarding certain additional financial and business trends relating to the Company's financial condition and results from operations. In addition, eSpeed's management uses these measures for reviewing the Company's financial results and evaluating eSpeed's financial performance. For the first quarter of 2006, the difference between GAAP net income and non-GAAP net operating income was $0.7 million, net of tax. For the same period of 2006, the difference between GAAP and non-GAAP operating revenues was $3.9 million. eSpeed considers "non-GAAP net operating income" to be after-tax income generated from the Company's continuing operations excluding certain non-recurring or non-core items such as, but not limited to, asset impairments, litigation judgments, costs or settlements, restructuring charges, costs related to potential acquisitions, charitable contributions, insurance proceeds, business partner securities, gains or losses on investments and similar events. The amortization of patent costs and associated licensing fees (including those made in settlement of litigation) from such patents are generally treated as operating items. Material judgments or settlement amounts paid or received and impairments to all or a portion of such assets are generally treated as non-operating items. Management does not provide guidance of GAAP net income because certain items identified as excluded from non-GAAP net operating income are difficult to forecast. About eSpeed, Inc. eSpeed, Inc. (NASDAQ: ESPD) is a leader in developing and deploying electronic marketplaces and related trading technology that offers traders access to the most liquid, efficient and neutral financial markets in the world. eSpeed operates multiple buyer, multiple seller real-time electronic marketplaces for the global capital markets, including the world's largest government bond markets and other fixed income and foreign exchange marketplaces. eSpeed's suite of marketplace tools provides end-to-end transaction solutions for the purchase and sale of financial products over eSpeed's global private network or via the Internet. eSpeed's neutral platform, reliable network, straight-through processing and superior products make it the trusted source for electronic trading at the world's largest fixed income and foreign exchange trading firms and major exchanges. To learn more, please visit www.espeed.com. Discussion of Forward-Looking Statements by eSpeed, Inc. The information in this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Our actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements. Factors that might cause or contribute to such a discrepancy include, but are not limited to, our relationship with Cantor Fitzgerald and its affiliates, the costs and expenses of developing, maintaining and protecting our intellectual property, including judgments or settlements paid or received and their related costs, the possibility of future losses and negative cash flow from operations, the effect of market conditions, including trading volume and volatility, our pricing strategy and that of our competitors, our ability to develop new products and services, to enter new markets, to secure and maintain market share, to enter into marketing and strategic alliances, to hire new personnel, to expand the use of our electronic system, to induce clients to use our marketplaces and services and to effectively manage any growth we achieve, the effects of the attacks on the World Trade Center on September 11, 2001, and other factors that are discussed under "Risk Factors" in eSpeed's Annual Report on Form 10-K filed with the Securities and Exchange Commission. We believe that all forward-looking statements are based upon reasonable assumptions when made; however, we caution that it is impossible to predict actual results or outcomes or the effects of risks, uncertainties or other factors on anticipated results or outcomes and that, accordingly, you should not place undue reliance on these statements. Forward-looking statements speak only as of the date when made, and we undertake no obligation to update these statements in light of subsequent events or developments. Actual results and outcomes may differ materially from anticipated results or outcomes discussed in forward-looking statements. -0- *T eSpeed, Inc and Subsidiaries CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (in thousands, except share data) ---------------------------------------------------------------------- March 31, December 2006 31, 2005 ----------- --------- (Unaudited) Assets Cash and cash equivalents $12,195 $37,070 Reverse repurchase agreements with related parties 165,052 141,365 ----------- --------- Total cash and cash equivalents 177,247 178,435 Fixed assets, net 56,421 58,291 Investments 7,764 7,742 Goodwill 12,184 12,184 Intangible assets, net 11,261 11,356 Receivable from related parties 8,605 4,345 Other assets 11,695 8,581 ----------- --------- Total assets $285,177 $280,934 =========== ========= Liabilities and Stockholders' Equity Current liabilities: Payable to related parties 5,324 7,588 Accounts payable and accrued liabilities 21,921 19,649 ----------- --------- Total current liabilities 27,245 27,237 Deferred income 7,489 7,593 ----------- --------- Total liabilities 34,734 34,830 ----------- --------- Stockholders' Equity: Preferred stock, par value $0.01 per share; 50,000,000 shares authorized, none outstanding at March 31, 2006 and December 31, 2005 - - Class A common stock, par value $.01 per share; 200,000,000 shares authorized; 35,426,216 and 34,387,380 shares issued at March 31, 2006 and December 31, 2005, respectively 354 343 Class B common stock, par value $.01 per share; 100,000,000 shares authorized; 21,139,270 and 22,139,270 shares outstanding at March 31, 2006 211 221 and December 31, 2005, respectively Additional paid-in capital 297,959 294,987 Unearned stock based compensation (1,101) (1,592) Treasury stock, at cost; 6,449,991 and 6,488,047 shares of Class A common stock at March 31, 2006 and December 31, 2005, respectively (62,131) (62,486) Retained earnings 15,151 14,631 ----------- --------- Total stockholders' equity 250,443 246,104 ----------- --------- Total Liabilities and Stockholders' Equity $285,177 $280,934 =========== ========= See notes to condensed consolidated financial statements eSpeed, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME IN ACCORDANCE WITH GAAP (unaudited) (In thousands, except per share data) ---------------------------------------------------------------------- Three Months Ended ------------------ March March 31, 31, 2006 2005 -------- --------- Revenues: Transaction revenues with related parties Fully electronic transactions $16,719 $20,437 Voice-assisted brokerage transactions 7,255 6,494 Screen-assisted open outcry transactions 1,426 407 -------- -------- Total transaction revenues with related parties 25,400 27,338 -------- -------- Software Solutions fees from related parties 7,491 6,104 Software Solutions and licensing fees from unrelated parties 3,799 4,177 Insurance recovery 3,500 - Interest income 2,362 1,285 -------- -------- Total revenues 42,552 38,904 -------- -------- Expenses: Compensation and employee benefits 13,858 13,051 Amortization of software development costs and other intangibles 6,890 4,666 Other occupancy and equipment 8,633 7,409 Professional and consulting fees 1,910 2,941 Communications and client networks 2,027 1,756 Marketing 332 493 Administrative fees to related parties 3,427 3,877 Amortization of business partner and non-employee securities 19 117 Other 2,045 2,491 -------- -------- Total operating expenses 39,141 36,801 -------- -------- -------- -------- Pre-tax operating income 3,411 2,103 -------- -------- Income tax provision 1,391 764 -------- -------- Net income $2,020 $1,339 ======== ======== Per share data: Basic GAAP earnings per share $0.04 $0.03 ======== ======== Diluted GAAP earnings per share $0.04 $0.02 ======== ======== Basic weighted average shares of common stock outstanding 50,077 53,141 ======== ======== Diluted weighted average shares of common stock outstanding 51,137 54,095 ======== ======== eSpeed, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (unaudited) (In thousands, except per share data) ---------------------------------------------------------------------- Three Months Ended ------------------ March March 31, 31, 2006 2005 -------- -------- Revenues: Transaction revenues with related parties Fully electronic transactions $16,719 $20,437 Voice-assisted brokerage transactions 7,255 6,494 Screen-assisted open outcry transactions 1,426 407 -------- -------- Total transaction revenues with related parties 25,400 27,338 -------- -------- Software Solutions fees from related parties 7,491 6,104 Software Solutions and licensing fees from unrelated parties 3,799 4,177 Interest income 1,963 1,285 -------- -------- Total revenues 38,653 38,904 -------- -------- Expenses: Compensation and employee benefits 13,634 13,051 Amortization of software development costs and other intangibles 5,727 4,666 Other occupancy and equipment 7,989 7,409 Professional and consulting fees 1,163 959 Communications and client networks 2,027 1,756 Marketing 332 493 Administrative fees to related parties 3,427 3,877 Other 2,046 2,491 -------- -------- Total operating expenses 36,345 34,702 -------- -------- -------- -------- Pre-tax operating income 2,308 4,202 -------- -------- Income tax provision 941 1,526 -------- -------- Net income 1,367 2,676 ======== ======== Non-operating income (loss): Amortization of business partner and non-employee securities, net of tax (11) (74) Litigation costs, net of tax (442) (1,263) Accelerated amortization, net of tax (689) - Office relocation cost, net of tax (382) - Tax settlement, net of tax 104 - Insurance recovery, net of tax 2,073 - -------- -------- Total non-operating income (loss) 653 (1,337) -------- -------- GAAP net income $2,020 $1,339 ======== ======== Per share data: Basic pre-tax operating income per share $0.05 $0.08 Basic tax provision per share $(0.02) $(0.03) -------- -------- Basic net operating income per share $0.03 $0.05 Basic non-operating income (loss) per share $0.01 $(0.02) -------- -------- Basic GAAP earnings per share $0.04 $0.03 ======== ======== Diluted pre-tax operating income per share $0.05 $0.08 Diluted tax provision per share $(0.02) $(0.03) -------- -------- Diluted net operating income per share $0.03 $0.05 Diluted non-operating income (loss) per share $0.01 $(0.03) -------- -------- Diluted GAAP earnings per share $0.04 $0.02 ======== ======== Basic weighted average shares of common stock outstanding 50,077 53,141 ======== ======== Diluted weighted average shares of common stock outstanding 51,137 54,095 ======== ======== Additional data: Pre-tax operating margin 6.0% 10.8% ======== ======== eSpeed, Inc. & Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) ---------------------------------------------------------------------- YTD YTD March 31, March 31, --------- --------- 2006 2005 --------- --------- Cash flows from operating activities: Net income $2,020 $1,339 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 9,845 7,098 Gain on insurance recovery from related parties (3,500) - Equity in net loss (income) of unconsolidated investments (22) 21 Deferred income tax expense 1,105 123 Stock based compensation 573 653 Tax benefit from employee stock options and warrant exercises 69 38 Excess tax benefits from stock based compensation (47) - Issuance of securities under employee benefit plan - 62 Changes in operating assets and liabilities: Receivable from related parties (608) 1,630 Other assets (3,111) (1,023) Payable to related parties (2,264) (4,821) Accounts payable and accrued expenses 1,099 (3,883) Deferred income (104) (104) --------- --------- Net cash provided by operating activities 5,055 1,133 --------- --------- Cash flows from investing activities: Purchase of fixed assets (2,105) (3,613) Capitalization of software development costs (4,185) (5,579) Capitalization of patents and related defense costs (241) (508) --------- --------- Net cash used in investing activities (6,531) (9,700) --------- --------- Cash flows from financing activities: Purchase of Class A common stock - (11,610) Proceeds from exercises of stock options and warrants 241 104 Excess tax benefits from stock based compensation 47 - Receivable from broker on stock option exercises - 49 --------- --------- Net cash provided by (used in) financing activities 288 (11,457) --------- --------- Net decrease in cash and cash equivalents (1,188) (20,024) --------- --------- Cash and cash equivalents at beginning of period 37,070 19,884 Reverse repurchase agreements with related parties at beginning of period 141,365 189,804 --------- --------- Total Cash and cash equivalents at beginning of period 178,435 209,688 --------- --------- Cash and cash equivalents at end of period 12,195 12,960 Reverse repurchase agreements with related parties at end of period 165,052 176,704 --------- --------- Total Cash and cash equivalents at end of period $177,247 $189,664 ========= ========= Supplemental cash information: Cash paid for income taxes $- $21 Dividend distribution to Cantor (Note 12) 1,500 - Contribution of license from Cantor (Note 10) 1,500 - Conversion of class B common stock to class A common stock 10 - eSpeed, Inc. & Subsidiaries CONSOLIDATED STATEMENTS OF FREE CASH FLOWS (unaudited) (in thousands) ---------------------------------------------------------------------- Three Months Ended March 31, ---------------- 2006 2005 ------- -------- Pre-tax operating income $2,308 $4,202 Depreciation and amortization 9,845 7,098 Other non-cash and non-operating items 1,607 (1,363) ------- -------- Pre-tax operating income adjusted for depreciation, amortization and other 13,760 9,937 ------- -------- Income tax (provision) benefit on operating income (941) (1,526) Income tax benefit (provision) on non-operating income (loss) (450) 762 Deferred income tax expense 1,105 123 Tax benefit from stock option and warrant exercises 69 38 Income taxes paid - - ------- -------- (Increase) in current income tax payable (217) (603) Changes in related party receivable and payable, net (6,372) (3,191) Changes in other operating assets and liabilities, net (2,116) (5,010) ------- -------- Net cash provided by operating activities 5,055 1,133 ------- -------- Purchases of fixed assets (2,105) (3,613) Capitalization of software development costs (4,185) (5,579) Capitalization of patents and related defense costs (241) (508) ------- -------- Free cash flows (1,476) (8,567) ------- -------- Related party receivable and payable, net 6,372 3,191 ------- -------- Free cash flows, net of related party activity $4,896 $(5,376) ======= ======== eSpeed, Inc. and Subsidiaries RECONCILIATION of NON-GAAP FINANCIAL MEASURES TO GAAP (unaudited) (in thousands) ---------------------------------------------------------------------- Three Months Ended March 31, ----------------- 2006 2005 -------- -------- Revenues $38,653 $38,904 Insurance proceeds (a) 3,500 - Tax settlement (b) 399 - -------- -------- GAAP revenues $42,552 $38,904 -------- -------- Operating expenses $36,345 $34,702 Amortization of business partner and non-employee securities (c) 19 117 Litigation costs (d) 747 1,982 Tax settlement (e) 224 - Accelerated amortization (f) 1,162 - Relocation costs (g) 644 - -------- -------- GAAP expenses $39,141 $36,801 -------- -------- Pre-tax operating income $2,308 $4,202 Sum of reconciling items = (a) + (b) - (c) - (d) - (e) - (f) - (g) 1,103 (2,099) -------- -------- GAAP income before income tax provision $3,411 $2,103 -------- -------- Income tax provision $941 $1,526 Income tax expense on non-operating income (h) 450 (762) -------- -------- GAAP income tax provision $1,391 $764 -------- -------- Net operating income $1,367 $2,676 Sum of reconciling items = (a) + (b) - (c) - (d) - (e) - (f) - (g) - (h) 653 (1,337) -------- -------- GAAP net income $2,020 $1,339 -------- -------- eSpeed, Inc. and Subsidiaries Quarterly Market Activity Report The following table provides certain volume and transaction count information on the eSpeed system for the periods indicated. -------------------------------------- 1Q05 2Q05 3Q05 -------------------------------------- Volume (in billions) -------------------- Fully Electronic Volume - Excluding New Products 6,384 7,111 8,014 Fully Electronic Volume - New Products* 436 506 376 Voice-Assisted Volume 4,726 7,401 8,576 -------------------------------------- Total Electronic Volume 11,546 15,018 16,966 ====================================== Electronic Transaction Count ---------------------------- Fully Electronic Transactions - Excluding New Products 1,055,479 1,304,403 1,642,579 Fully Electronic Transactions - New Products* 71,309 91,408 115,483 Voice-Assisted Transactions 189,129 215,229 224,291 -------------------------------------- Total Transactions 1,315,917 1,611,040 1,982,353 ====================================== -------------------------------------- eSpeed Equities Direct Access (Number of Shares Traded In Millions) 168 178 154 ====================================== Trading Days 61 64 64 Global Interest Rate Futures Volume (1) CBOT - US Treasury Contracts 113,756,640 120,086,840 109,470,625 CME - Euro $ Contracts 90,815,456 117,034,054 105,199,005 EUREX - Bund Contracts 83,539,303 80,150,635 66,780,116 Fed UST Volume (in billions) (2) UST Volume 34,570 36,749 34,554 Average Daily UST Volume 567 574 540 NYSE - Volume (shares traded) - in millions (3) 99,372 100,439 98,074 Transaction Value - in millions 3,416,701 3,456,359 3,513,352 NASDAQ - Volume (shares traded) - in millions (4) 121,179 112,473 104,927 Transaction Value - in millions 2,585,334 2,467,331 2,353,027 % Change % Change --------------------------------------------- 4Q05 1Q06 1Q06 vs 1Q06 vs 4Q05 1Q05 ------------------------- Volume (in billions) -------------------- Fully Electronic Volume - Excluding New Products 7,500 8,957 19.4% 40.3% Fully Electronic Volume - New Products* 540 524 (2.8%) 20.2% Voice-Assisted Volume 7,608 8,093 6.4% 71.2% --------------------------------------------- Total Electronic Volume 15,648 17,574 12.3% 52.2% ============================================= Electronic Transaction Count ---------------------- Fully Electronic Transactions - Excluding New Products 1,640,167 1,971,347 20.2% 86.8% Fully Electronic Transactions - New Products* 111,801 131,700 17.8% 84.7% Voice-Assisted Transactions 193,742 228,124 17.7% 20.6% --------------------------------------------- Total Transactions 1,945,710 2,331,171 19.8% 77.2% ============================================= --------------------------------------------- eSpeed Equities Direct Access (Number of Shares Traded In Millions) 147 203 38.1% 20.3% ============================================= Trading Days 61 62 Global Interest Rate Futures Volume (1) CBOT - US Treasury Contracts 101,854,952 127,606,543 25.3% 12.2% CME - Euro $ Contracts 97,306,869 117,284,097 20.5% 29.1% EUREX - Bund Contracts 68,817,862 85,217,459 23.8% 2.0% Fed UST Volume (in billions) (2) UST Volume 32,820 34,810 6.1% 0.7% Average Daily UST Volume 538 561 4.4% (0.9%) NYSE - Volume (shares traded) - in millions (3) 105,879 108,447 2.4% 9.1% Transaction Value - in millions 3,738,882 4,072,426 8.9% 19.2% NASDAQ - Volume (shares traded) - in millions (4) 110,647 128,566 16.2% 6.1% Transaction Value - in millions 2,584,578 3,070,980 18.8% 18.8% * New Products defined as Foreign Exchange, Interest Rate Swaps, Repos and Futures. CBOT Futures volume calculated based on per contract notional value of $200,000 for the two year contract and $100,000 for all others. Sources: (1) Futures Industry Association - Monthly Volume Report - (www.cbot.com, www.cme.com, www.eurexchange.com) (2) www.ny.frb.org/pihome/statistics/dealer - Federal Reserve Bank (3) NYSE - www.nyse.com (4) NASDAQ - www.marketdata.nasdaq.com ----------------------------------- Trading Days ----------------------------------- 2006 ---- Q1 Q2 Q3 Q4 -------- -------- -------- -------- 62 63 63 62 2005 ---- Q1 Q2 Q3 Q4 -------- -------- -------- -------- 61 64 64 61 ----------------------------------- ---------------------------------------------------------------------- Fiscal Year 2005 Jan'05 Feb'05 Mar'05 Volume Data (in billions) Fully Electronic 2,027 2,229 2,565 Voice 1,550 1,628 1,548 Total 3,577 3,857 4,113 Transaction Count Fully Electronic 341,336 362,482 422,970 Voice 64,431 59,901 64,797 Total 405,767 422,383 487,767 Trading Days 20 19 22 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Fiscal Year 2006 Jan'06 Feb'06 Mar'06 Volume Data (in billions) Fully Electronic 2,994 2,923 3,564 Voice 2,545 2,502 3,046 Total 5,539 5,425 6,609 Transaction Count Fully Electronic 672,749 643,969 786,329 Voice 76,852 70,844 80,428 Total 749,601 714,813 866,757 Trading Days 20 19 23 ---------------------------------------------------------------------- *T