ITG Q2 earnings dip

ITG's net income was $27.2 million, compared to net income of $27.9 million in the second quarter of 2006, when ITG had a one-time after-tax gain of $3.2 million. Earnings were $0.60 per diluted share, versus earnings of $0.63 per diluted share including the aforementioned one-time gain in the second quarter of last year.

Excluding the impact of non-recurring items in last year's results related to the sale of our Canadian joint venture, KTG Technologies Corp., second quarter 2007 pro forma operating revenues of $175.7 million increased by 19 percent from second quarter 2006 pro forma operating revenues of $148.1 million. ITG's pro forma operating income was $27.2 million, up 11 percent from pro forma operating net income of $24.6 million in the second quarter of 2006. In the second quarter of 2007, pro forma operating earnings per share of $0.60 increased seven percent versus pro forma operating earnings of $0.56 per diluted share in the second quarter of last year. Pro forma pre-tax operating margins in the second quarter of 2007 were 26.5 percent, down from 28.2 percent in the second quarter of 2006.

"In the second quarter of 2007, ITG maintained steady US domestic volumes despite a quarter characterized by a volatile equity market," said Bob Gasser, ITG's Chief Executive Officer and President. "We began realizing benefits from our self-clearing initiative, and announced the addition of multi-asset class capabilities with the acquisition of RedSky."

ITG's non-U.S. operating revenues were a record $42.2 million in the second quarter of 2007, 50 percent higher than revenues of $28.2 million in the second quarter of 2006. Excluding the impact of non-recurring items in last year's second quarter results, international pre-tax income increased 161 percent in the second quarter of 2007 to $5.8 million.

"ITG's growth continued in the second quarter, due in part to the record performance of our non-US businesses, where our momentum with clients is building due to our expanded product suite," said Mr. Gasser. "We have added products in Canada, Europe and Asia as we move forward with our globalization strategy."

Year to Date Results

For the six months ended June 30, 2007, revenues increased 15 percent from the prior year period to $344.6 million, net income decreased four percent to $51.9 million and diluted earnings per share decreased six percent to $1.16. Excluding non-recurring items in 2006, pro forma operating revenues increased 20 percent, pro forma net operating income increased 13 percent and pro forma diluted earnings per share increased 10 percent.