ESPEED INC - 10-Q Quarterly Report

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


eSpeed, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware				13-4063515
(State or Other Jurisdiction of Incorporation or Organization)				(I.R.S. Employer Identification No.)
135 East 57th Street
(Address of Principal Executive Offices)
New York, New York 10022
(City, State, Zip Code)
(212) 938-5000
(Registrant's Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

As of November 10, 2003, the registrant had 30,322,624 shares of Class A common stock, $0.01 par value, and 25,362,809 shares of Class B common stock, $0.01 par value, outstanding.


	Page
ITEM 1. Financial Statements
Condensed Consolidated Statements of Financial Condition:
September 30, 2003 (unaudited) and December 31, 2002		1
Condensed Consolidated Statements of Income (unaudited):
Three Months Ended September 30, 2003 and September 30, 2002		2
Condensed Consolidated Statements of Income (unaudited):
Nine Months Ended September 30, 2003 and September 30, 2002		3
Condensed Consolidated Statements of Cash Flows (unaudited):
Nine Months Ended September 30, 2003 and September 30, 2002		4
Notes to Condensed Consolidated Financial Statements (unaudited)		5
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		13
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk		23
ITEM 4. Controls and Procedures		23
PART II. — OTHER INFORMATION
ITEM 1. Legal Proceedings		23
ITEM 2. Changes in Securities and Use of Proceeds		23
ITEM 4. Submission of Matters to a Vote of Security Holders		24
ITEM 5. Other Information		24
ITEM 6. Exhibits and Reports on Form 8-K		25
Signatures
Exhibit Index

eSpeed, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)


	September 30, 2003			December 31, 2002
	(unaudited)
Assets
Cash and cash equivalents	$	216,985		$	187,999
Fixed assets, net		28,563			26,383
Investments		11,476			11,175
Intangible assets, net		19,288			19,528
Receivable from related parties		2,467			5,266
Other assets		6,776			2,360
Total assets	$	285,555		$	252,711
Liabilities and Stockholders' Equity
Liabilities:
Payable to related parties	$	3,546		$	18,857
Accounts payable and accrued liabilities		26,889			15,399
Total liabilities		30,435			34,256
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, par value $0.01 per share; 50,000,000 shares authorized; 8,000,750 shares issued and outstanding		80			80
Class A common stock, par value $0.01 per share; 200,000,000 shares authorized; 30,276,299 and 29,783,682 shares issued		303			298
Class B common stock, par value $0.01 per share; 100,000,000 shares authorized; 25,362,809 and 25,388,814 shares issued and outstanding		254			254
Additional paid-in capital		280,040			270,656
Unamortized expense of business partner and non-employee securities		(1,643	)		(3,252	)
Treasury stock, at cost; 186,399 and 24,600 shares of Class A common stock		(2,094	)		(222	)
Accumulated deficit		(21,820	)		(49,359	)
Total stockholders' equity		255,120			218,455
Total liabilities and stockholders' equity	$	285,555		$	252,711

eSpeed, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except per share data)


	Three Months Ended September 30,
	2003		2002
Revenues:
Transaction revenues with related parties
Fully electronic transactions	$	32,300	$	22,783
Voice-assisted brokerage transactions		5,153		4,649
Screen-assisted open outcry transactions		128		11
Total transaction revenues with related parties		37,581		27,443
Software Solutions fees from related parties		3,821		3,423
Software Solutions and licensing fees from unrelated parties		2,321		1,333
Interest income		547		780
Total revenues		44,270		32,979
Expenses:
Compensation and employee benefits		9,790		9,113
Occupancy and equipment		8,191		6,338
Professional and consulting fees		953		1,149
Communications and client networks		1,715		1,465
Marketing		373		1,281
Administrative fees to related parties		2,579		2,292
Amortization of business partner and non-employee securities		648		541
Other		3,706		3,012
Total expenses		27,955		25,191
Income before income tax provision		16,315		7,788
Income tax provision		6,353		123
Net income	$	9,962	$	7,665
Earnings per share:
Basic	$	0.18