This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Nasdaq OMX Group Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: NDAQ

We did, however, continue to generate strong cash flow during the quarter. We have free cash flow of $185 million in the second quarter of 2012. We continued to be active in deploying that capital. In the second quarter, we bought back $125 million worth of shares, or 5.3 million shares, at an average price of $23.37. In addition, we paid our first dividend of $0.13 per share in June. So we continued to make good progress with capital deployment.

In the second quarter of 2012, access and broker services revenues were $66 million, up $7 million, or 12%, compared to the prior year. Our out-performance is driven by our unrelenting focus on innovation, which continues to deliver a pipeline of innovative new products, which are helping to reduce our customers' infrastructure costs and meet their performance requirements.

NASDAQ's ongoing investments in infrastructure and technology have resulted in an ecosystem that attracts and retains members, brokers and participants. Recent innovations include 40G connectivity. We have a very successful rollout of this product to our customer base and are experiencing continued solid uptick. 40G client connectivity provides customers at our data center the ability to access our U.S. markets through a single, ultra-low latency connection. Network latency on 40G has been observed by our clients being reduced by an average of 2 to 7 microseconds, round-trip, compared to 10G.

Our Super Cab offering provides customers at our data center with up to 17.3 kilowatts of power to operate in cool trading equipment within a single cabinet. This has many benefits for our customers obviously reduced cost but also reduced connectivity, latency, enhanced cooling capability and obviously has been very successful for us.

In Access Services, our pipeline is as full as it's ever been and you'll see us continue to introduce new products as we move forward. It is this focus that makes our corporate [ph] data center a must for all our customers and allowed us to grow our Access Services technology business at a double-digit rate even in this difficult market environment.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs