Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Richard Repetto - Sandler O'Neill & Partners.
Richard Repetto - Sandler O'Neill & Partners
The first question is an update on the bad debt. Any new developments there in working off the position or the collection efforts with the IB?
Paul G. Anderson
We are basically in the same position as we were a week ago. We continue to work out of the position and settle it off and that is still where we are.
Richard Repetto - Sandler O'Neill & Partners
Solid results on the revenue line, and we are 80% through the current quarter. Could you give us some color? Volumes are down and the outlook you were painting was positive but there was a little bit of mix when you talked about the tight credit. So if you can give us any color how the business is running through 80% of the quarter here.
Paul G. Anderson
As I said, we saw a decline in open interest through the fourth quarter and we continue to see that through the first quarter this fiscal year. And I think as far as earnings and revenue, over this quarter, really even the first two quarters of this fiscal year, are going to be in line with probably a year ago as far as volumes and expectations. And a lot of that due to a tightness in credit, not only here domestically but really around the world.
And then once we see liquidity come back into the credit markets and more stability, then we believe over the last two quarters of our fiscal year we will see volumes really ramp up again.
Richard Repetto - Sandler O'Neill & Partners
Just trying to get a feel for the tangible book bill. And you said something about $2.8 million of clearing fees that weren’t previously recognized. I’m not sure whether I heard that properly.
William J. Dunaway
We’ve got roughly $7.0 million worth of intangible and good will on the balance sheet, if that gets to the question you are asking about.
Richard Repetto - Sandler O'Neill & Partners
That helps. And this other $2.8 million?
William J. Dunaway
It was a $2.8 million correction of an accounting error related to setting up pre-paid clearing fees for our clients that spanned the last couple of years. It relates to clients we charge on a round-turn basis so they’re not charged until they close out their position. So when the clearing fees come in from the exchange you set up a pre-paid because you are not collecting from the client until you realize the close out and it was just an error in the calculation we ended up catching here in the fourth quarter and wrote that down to $2.8 million.
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