21 August 2017
visit www.avoka.com

Wagner patent expiry to hit eSpeed earnings

03 May 2007  |  4578 views  |  0 cash

US electronic bond trading network eSpeed is forecasting a dip in revenue and operating income for the remainder of 2007 following the expiration of the Wagner patent in February of this year.

ESpeed recognised $3.1 million in revenue and $1.5 million in non-GAAP net operating income related to the patent in the first quarter of 2007.

The company has extracted tens of millions of dollars from US futures and options exchanges through its rigorous enforcement of the patent in the law courts. The patent, acquired by eSpeed for $3 million in 2001, described a method of matching bids and offers in electronic futures trading.

In its first quarter results statement released late yesterday, the company reported revenues three per cent lower than in the year-ago period. GAAP net income of $0.9 million stood at $0.02 per diluted share in the first quarter of 2007 vs. $0.04 per diluted share in the first quarter of 2006.

eSpeed's non-GAAP operating revenue increased six per cent and the company's non-GAAP net operating income per diluted share increased to $2 million or $0.04 in the first quarter of 2007 from $0.03 in the prior year's first quarter.

The difference between non-GAAP net operating income and GAAP net income for the quarter occurred primarily due to $0.8 million in patent litigation costs and $0.4 million in losses from the firm's Equities Direct Access business, which is set to become a separate company called Aqua in the second quarter and in which eSpeed will have an equity stake.

The company, which recently rebuffed an offer from interdealer broker Tullett Prebon, is currently under siege from hedge funds demanding a seperation of its business from that of parent company Cantor Fitzgerald.

Howard Lutnick, eSpeed's chairman and CEO, sought to emphasise the positives in the first quarter trading statement.

"eSpeed's fundamental strength was underscored by the year-over-year gains in our U.S. treasury business and by increased screen-assisted revenue as additional BGC desks entered our hybrid pipeline," he says. "In addition, eSpeed's futures products made solid gains. We remain optimistic about our growth prospects for 2008 and beyond based on strong expected returns on the investments the company has made in our portfolio of new products."

Fully electronic revenues were $17.9 million in the first quarter of 2007 compared with $16.7 million for the first quarter of 2006. Revenues from Software Solutions were $12.3 million versus $11.3 million in the year ago period. Voice-assisted and screen-assisted revenues totaled $8.7 million in Q1 2007 compared with $8.7 million in the equivalent period.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Cantor rejects eSpeed bid from Tullett Prebon

Cantor rejects eSpeed bid from Tullett Prebon

18 April 2007  |  8605 views  |  0 comments
Aqua adds John Silvestri to senior management team

Aqua adds John Silvestri to senior management team

10 April 2007  |  5548 views  |  0 comments
Hedge funds circle eSpeed

Hedge funds circle eSpeed

30 March 2007  |  4389 views  |  0 comments
Espeed loses OMX patent appeal

Espeed loses OMX patent appeal

27 March 2007  |  4689 views  |  0 comments
Chapman Capital piles pressure on eSpeed following patent ruling

Chapman Capital piles pressure on eSpeed following patent ruling

22 March 2007  |  4844 views  |  0 comments
Chapman Capital demands eSpeed shake-up

Chapman Capital demands eSpeed shake-up

15 March 2007  |  4235 views  |  0 comments
Aqua names Brian Weston CTO

Aqua names Brian Weston CTO

06 March 2007  |  5843 views  |  0 comments
Espeed names Yevette Tierney CIO

Espeed names Yevette Tierney CIO

21 February 2007  |  7724 views  |  0 comments
Fishkind joins Foley at Aqua

Fishkind joins Foley at Aqua

30 January 2007  |  4775 views  |  0 comments
Espeed claims victory in TT patent battle

Espeed claims victory in TT patent battle

07 November 2006  |  9432 views  |  0 comments
ESpeed plunges into the red

ESpeed plunges into the red

05 August 2005  |  5141 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.dorsum.euvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
11000 views comments | 25 tweets | 23 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
9232 views 0 | 5 tweets | 1 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
9153 views comments | 21 tweets | 26 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
9040 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
8864 views comments | 10 tweets | 8 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job