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Information on TradeStation Technologies. Full press release is at:
<http://biz.yahoo.com/bw/011024/240122_1.html>
Bob Fulks
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``The statistics on trading accounts for clients using TradeStation 6
are nothing short of outstanding,'' said Bill Cruz, Co-Chairman of
the Board and Co-CEO.
``We have maintained for some time that TradeStation brokerage
clients would be very active traders. And our average TradeStation 6
brokerage client traded at an annualized rate of over 500 times per
year during the slowest quarter of the year, and in a bear market.
These statistics are an early indication that we will attract the
industry's most valuable client base.
``In our opinion, there are two major statistics by which to judge
success for online brokerages,'' continued Cruz. ``One is average
daily revenue trades, and the other is average revenue per account.
We expect our average daily trades to continue to grow at a fast
pace, and our average revenue per account is a good indication of our
expected future profitability.''
Following the June 27th launch of TradeStation 6, the company
experienced the following growth and results in daily revenue trades
and revenue per account:
Through
July 2001 Aug 2001 Sept 2001 Oct 23, 2001
--------- -------- --------- ------------
Average daily
revenue trades 336 689 1,165 1,731
Annualized Average Revenue per Account for Q3 - $14,562
Additional statistics that reflect the trading profile of
TradeStation 6 brokerage clients for the quarter ended September 30,
2001 are as follows:
- Average quarterly trades per client - 129
- Average revenue per trade - $29.93
- Average assets per account - $119,613
- New equities accounts opened and funded at quarter end - 653
``When you compare the 129 trades per quarter made by TradeStation 6
brokerage clients to the fewer than 3 trades per quarter made by the
average client of the top four publicly-traded online brokers, you
see that TradeStation 6 brokerage clients are more than 40 times as
active,'' continued Cruz. ``To put this in perspective, the top four
publicly-traded online brokers, each need over 29,000 accounts to
equal the trading activity of our 653 TradeStation 6 accounts.
``I am pleased to report,'' Cruz added, ``that many customers of the
TradeStation 6 subscription service have shown interest in becoming
TradeStation 6 brokerage clients, and these former subscription
customers represent a major portion of our initial TradeStation 6
brokerage accounts. Based on this, we have converted our 6,000 plus
WindowOnWallStreet.com subscribers to the TradeStation 6 subscription
service, and intend to upgrade as many of our thousands of
TradeStation 2000i and 4.0 customers as we can to that service. We
have found that once a customer uses the TradeStation 6 subscription
service, the unique benefits of becoming a TradeStation 6 brokerage
client become apparent.''
Statistics above are for equities accounts trading through
TradeStation 6 only. The company also has another 183 futures
accounts using and trading through TradeStation 6. Monthly equities
trading statistics are provided solely to show the growth in trade
volume during this initial post-launch period. Comparable statistics
from other online brokers are from published research by JP Morgan
H&Q.
Business Outlook For Fourth Quarter 2001
The company is currently revising its Q4 expected net loss, primarily
as a result of a decline in expected Q4 2001 revenues from Bridge
Information Systems, part of the company's legacy software royalty
business. In connection with Bridge's bankruptcy proceedings,
MoneyLine Network, Inc. has purchased the Bridge assets relating to
the company's royalties, and the company and MoneyLine have entered
into a new royalty agreement.
The company's fourth quarter 2001 Business Outlook reflects a $1.1
million decrease in revenue, and decreased net profit, as a result of
Bridge's bankruptcy. Fourth quarter 2001 would have been the last
quarter of the Bridge agreement. Under the new agreement with
MoneyLine, although there are no guaranteed minimums, the
per-terminal royalty is 33% higher than it was under the agreement
with Bridge. The agreement with MoneyLine expires December 31, 2002.
The company's fourth quarter Business Outlook also reflects the
anticipated continuing decline of the company's legacy software and
subscription businesses. Additionally, due to the recent world events
and adverse market conditions for the brokerage industry, no
significant media advertising of the company's TradeStation 6 trading
platform is expected until the first quarter 2002, reducing both
revenues and operating expenses.
The following statements regarding the fourth quarter of the 2001
fiscal year are based on current expectations and beliefs with
respect to the remainder of the 2001 fiscal year. These statements
with respect to 2001 are forward-looking, and actual results may
differ materially, as suggested by the risk factors for
forward-looking statements set forth below.
Q4 2001
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TOTAL REVENUES $ 9,100,000
Key Components:
Brokerage fees $ 5,700,000
Subscription fees $ 1,700,000
Net licensing fees $ 300,000
Other revenues $ 1,400,000
TOTAL OPERATING EXPENSES $ 12,400,000
NET LOSS $ (3,300,000)
NET LOSS PER SHARE $ (0.07)
EBITDA(1) $ (1,200,000)
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