Optionable Reports Results for First Quarter 2007
biz.yahoo.com
Tuesday May 1, 4:01 pm ET
Revenue and Net Income Up 307 Percent and 276 Percent, Respectively
VALHALLA, N.Y., May 1 /PRNewswire-FirstCall/ -- Optionable, Inc. (OTC Bulletin Board: OPBL), a leading provider of natural gas and other energy derivatives brokerage services, announced today results for its first quarter ended March 31, 2007. The Company said that revenues increased 307 percent for the first quarter compared to the prior-year period, and net income increased 276 percent for the first quarter as compared to the prior-year period.
Kevin Cassidy, CEO said that the first quarter of 2007 was very active for the Company as it continued to diversify product offerings, add more depth of services, and solidify strategic alliances.
Revenues for the first quarter ended March 31, 2007, were $9.1 million, with net income of $3.1 million, or $0.06 per diluted share, up from $2.2 million in revenue, and net income of $825,000, or $0.02 per diluted share, for the first quarter of 2006. Operating margin increased to 56 percent for this year's first quarter, up from 37 percent for the first quarter of 2006. The weighted average number of diluted common shares used in the computations was 53,996,818 and 52,609,414 for the first quarter of 2007 and of 2006, respectively.
The fair value of warrants, options, and shares included in the Company's expenses amounted to $718,000 and $1,000 during the three-month periods ended March 31, 2007 and 2006, respectively.
Recently, the Company announced the availability of seven new swap contracts on its OPEX platform as well as being the first company to offer NYMEX Light Sweet Crude Oil Options electronically.
Cassidy said, "We continue to add to and diversify our products line to meet the needs of our clients by offering an increased variety of energy contracts. We are particularly proud to be the first company to offer NYMEX Light Sweet Crude Oil options through an electronic platform. Crude oil is the world's most actively traded commodity, and the NYMEX Division light, sweet crude oil futures contract is the world's most liquid forum for crude oil trading, as well as the world's largest-volume futures contract trading on a physical commodity."
Cassidy also said that most recently the Company added American-style options on OPEX. Natural gas (ON), RBOB gasoline (OB), and heating oil (OH), will be available to trade on OPEX in early May, and Dubai Crude Oil Calendar Swap Futures (Platts) (DC), began trading the last week of April.
In March, the Company increased its depth of services by the acquisition of the operations of privately held NY-based HQ Trading, one of the oldest independently-owned crude oil derivatives brokerage firms operating on the NYMEX floor. HQ Trading specializes in brokering crude oil options both on the over-the-counter market as well as on the NYMEX floor. HQ Trading client list includes hedge funds, oil refineries, transportation, trading companies, financial institutions, and wealthy individuals.
Cassidy said, "This was a very important acquisition for the Company. The HQ Trading team is extremely well-respected in the industry and is a good fit within Optionable. It broadens our client base as well as providing us a critical mass entry in the crude oil options market."
Recently, the Company finalized and broadened its strategic relationship with NYMEX and announced that three of its founding stockholders completed and signed definitive agreements with NYMEX Holdings, Inc. pursuant to which NYMEX has acquired 19 percent of Optionable.
Cassidy said, "This is a major strategic step for the Company. NYMEX is the world's largest exchange for the trading of energy futures and options contracts. Our relationship with NYMEX will be an important step in the continued growth of Optionable. It furthers our credibility in the marketplace, expands our client base, and provides us with outstanding marketing and technical resources."
In addition to the 19 percent stake in Optionable acquired by NYMEX from the founders, the Company has issued a warrant to NYMEX that would permit NYMEX to increase its stake in the Company to 40 percent. The warrant is exercisable for 18 months at an exercise price of $4.30 per share. The agreements also provide for certain marketing and technology initiatives between the Company and NYMEX.
Looking ahead Cassidy said that the Company will continue to explore and evaluate possible relationships with other OTC and floor brokerage companies or the additional hiring of energy brokers in an effort to continue to grow the Company. Cassidy also noted that the Company will consider possible future acquisition targets if appropriate.
Cassidy concluded, "If we find opportunities that are synergistic or accretive, then we will carefully evaluate them and determine what is in the best interests of the Company and its shareholders at that time."
As of March 31, 2007, the Company had cash and cash equivalents of $11.5 million. |
