OptionsXpress Holdings (NasdaqGS: OXPS) today reported record results for the three months ended June 30, 2007.
Highlights from the second quarter 2007 included:
- Record revenues of $59.4 million, a 26% increase year-over-year
- Record net income of $23.2 million, or $0.37 per diluted share
- Record daily average revenue trades (DARTs) of 32,700, a 15% increase year-over-year
- Net new account growth of 11,500 during the quarter, resulting in 235,300 customer accounts, a 21% increase year-over-year
- Industry-leading 64% pre-tax margins
- $5.3 billion in customer assets on June 30, 2007, a 29% increase year-over-year
"Our strong second quarter results demonstrate the leverage in our robust platform and our ability to attract high-value customers to optionsXpress," remarked David Kalt, Chief Executive Officer of optionsXpress. "During the quarter, we continued to build momentum on the marketing front with net new accounts up 13% from the first quarter, our second consecutive quarterly increase in net new accounts. We also made significant progress in the ongoing development of our educational programs and other platform enhancements that will strengthen our ability to drive new account growth in the future."
For the second quarter, DARTs were 32,700, up 15% from 28,500 in the second quarter of 2006, and up 7% from 30,700 in the first quarter of 2007. Trades per account on an annualized basis were 36, down from 38 in the second quarter of 2006, and up from 35 in the first quarter of 2007. Total revenue increased 26% over the second quarter of 2006 and 9% over the first quarter of 2007. Resulting net income was $23.2 million, or $0.37 per share on a diluted basis, a 29% increase from $18.0 million in the second quarter of 2006.
"At 36 trades per account per year, customer activity reached its highest level in a year and total customer assets increased 29% from a year ago. Commissions per trade remained strong at $17.73," said Adam DeWitt, Chief Financial Officer of optionsXpress. "As a result of the slightly improved trading activity and our high-value accounts, we generated 9% sequential net income growth while annualized pretax income per account increased to $660."
During the quarter, optionsXpress announced a dividend of $0.0625 per share. The total amount of the dividend was approximately $3.9 million and was paid to shareholders on June 28, 2007.
"We continue to refine our marketing strategies and work to improve our platform to appeal to the growing number of retail investors who are using options as a key component of their investing strategy. We also believe we will benefit from the integration of the XpressTrade futures platform which remains on track for later this year, positioning us to capitalize on growth and innovation in the futures industry," commented Mr. Kalt. "In the shorter term, we are cautiously optimistic on customer activity in July. However, August and September tend to be slower trading months."
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