The Nasdaq Stock Market, Inc. reported first quarter net income of US$18.3 million, an increase of US$0.3 million from US$18 million in the first quarter of 2006.

First quarter 2007 results include: a US$24.9 million charge for merger and acquisition related costs associated with Nasdaq’s failed offer for the London Stock Exchange; a US$10.6 million charge included in general, administrative and other expense related to a cancelled clearing contract; a US$7.8 million loss on foreign currency option contracts purchased to hedge the foreign exchange exposure on the acquisition bid for the LSE; and, a US$6.5 million gain associated with Nasdaq freezing its employee pension plan and Supplemental Executive Retirement Plan.

Operating income was US$81.4 million for the first quarter of 2007, an increase of US$39.6 million, or 94.7%, when compared to US$41.8 million for the first quarter of 2006.

Nasdaq’s chief executive officer, Robert Greifeld commented, “Our first quarter results demonstrate our ability to improve profitability by focusing on the execution of our business plan. Gross margin increased for the 10th consecutive quarter and operating income reached the highest level ever recorded at Nasdaq. Share volume matched in our systems reached record highs and Nasdaq had its strongest performance in IPO listings since the height of the market in 2000. We are extremely confident in our ability to continue to grow our business and remain excited about the future.”

For the full-year 2007, Nasdaq expects net income in the range of US$165 million to US$175 million for the year, including the impact of all charges noted above; gross margin in the range of US$755 million to US$775 million; and, total operating expenses in the range of US$390 million to US$410 million.

“We’re extremely proud of our first quarter operating results,” commented Nasdaq’s chief financial officer, David Warren. “By migrating trading to a single platform we’ve effectively completed the INET integration and have demonstrated our disciplined approach to integrating acquisitions. I’m pleased to say that all revenue and cost objectives identified at the time of the INET acquisition have been achieved. This success is clearly illustrated in the strong growth in operating income.”