For Immediate Release
Optionable Reports Record Results and Strong Growth in Average Daily Trading
Volumes For First Quarter 2006
Briarcliff Manor, NY - May 8, 2006 - Optionable, Inc. (OTCBB: OPBL), a rapidly
growing provider of natural gas and other energy derivatives brokerage services,
today announced record results from operations for the quarter ended March 31,
2006.
"Our record results for the quarter reflected the strong growth in the volume of
options traded along with the growing demand for our brokerage services," said
Kevin Cassidy, chief executive officer of Optionable. "Our ability to execute
trades in a demanding market and provide access to the broadest group of
counterparties provides customers with an advantage in the volatile energy
market. Further we achieved our dramatic growth in profitability while also
accelerating debt repayments and continuing our research and development
investments for OPEX, our new electronic platform for trading energy
derivatives."
Revenues for the quarter ended March 31, 2006 increased 93% to $2,233,996 from
$1,158,802 for the quarter ended March 31, 2005. Net income for the quarter
increased 500% to $824,909 compared to $137,288 for the first quarter of 2005.
Diluted earnings per common share increased to $0.02 per share, on 52,609,414
diluted shares, for the first quarter of 2006, versus $0.00 per share, on
51,406,431 diluted shares, for the first quarter of 2005.
"The much publicized geopolitical events in Iran, Nigeria, Venezuela and
elsewhere, together with the strains imposed on domestic energy supply, continue
to contribute to increased volatility in the energy market. We believe this will
continue to drive increases in the volume of transactions in the energy
derivatives market as a growing number of investors seek to realize the
opportunities. The combination of our OTC brokerage services along with the
introduction of OPEX provides our customers a broad range of opportunities to
participate in the energy derivatives market," concluded Cassidy.
During the first quarter Optionable expanded its brokerage services to include
crude oil options and swaptions trading and a greater array of natural gas
options contracts. At the same time the company also completed NYMEX
certification for OPEX to electronically clear trades through NYMEX ClearPort(R)
and is starting training traders on how to use OPEX.
"Our daily average volume of options brokered grew to 21,176 for the first
quarter of 2006," commented Edward O'Connor, president of the Company. "This is
in addition to a daily average volume of swaps and futures that amounted to
2,887 for the first quarter of 2006. This growth in volume speaks to our ability
to find counterparties for a significant number of transactions, including the
most complex ones, and demonstrates the growing demand in the energy derivatives
market."
Optionable, Inc. - Page 2
About Optionable
Optionable, Inc. is a leading provider of natural gas and other energy
derivatives trading and brokerage services, headquartered in Briarcliff Manor,
NY. The company provides its services to brokerage firms, financial
institutions, energy traders and hedge funds nationwide. In addition to the
traditional voice brokerage business, Optionable is developing an automated
derivatives trading platform. OPEX is a real-time electronic trade matching and
brokerage system designed to improve liquidity and transparency in the energy
derivatives market. For more information about Optionable and OPEX please visit
www.optionable.com.
Safe Harbor Statement
This release contains forward-looking statements which are made pursuant to the
safe harbor provisions of Section 21E of the Securities Exchange Act of 1934.
The forward-looking statements in this release do not constitute guarantees of
future performance. Those statements involve a number of factors that could
cause actual results to differ materially, including risks associated with
market acceptance of OPEX, our ability to retain key employees, reliance of
strategic relationships, intense and increasing competition, concentration of
services revenues related to natural gas derivatives, increased governmental
regulations as well as other risks detailed in the Company's filings with the
Securities and Exchange Commission. Optionable assumes no obligation to update
any forward-looking information contained in this press release or with respect
to the announcements described herein. OPEX is a servicemark of Optionable, Inc.
CONTACTS
Allan Jordan
The Global Consulting Group
Tel: (646) 284-9452
Email: ajordan@hfgcg.com
Optionable, Inc.
Results of Operations
(Unaudited)
For the three-month period ended
March 31,
----------------------------------------------
2006 2005
--------------------- --------------------
Net revenues $ 2,233,996 $ 1,158,802
Cost of revenues 847,768 606,772
--------------------- --------------------
Gross profit 1,386,228 552,030
Total operating expenses 279,207 345,631
Operating income 1,107,021 206,399
Other (expense)/income, net (282,112) (69,111)
--------------------- --------------------
Net income $ 824,909 $ 137,288
===================== ====================
Basic earnings per common share $ 0.02 $ 0.00
===================== ====================
Diluted earnings per common share $ 0.02 $ 0.00
===================== ====================
Basic weighted average common
shares outstanding 51,406,431 51,406,431
===================== ====================
Diluted weighted average common shares outstanding 52,609,414 51,406,431
===================== ====================
Optionable, Inc.
Balance Sheet
March 31, 2006 December 31, 2005
(Unaudited)
Current Assets:
Cash $ 1,989,520 $ 1,811,453
Accounts receivable, net 618,431 352,332
Other receivables 573,982 458,355
------------------- --------------------
Total current assets 3,181,933 2,622,140
Other assets 210,867 240,274
------------------- --------------------
Total assets $ 3,392,800 $ 2,862,414
=================== ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 478,597 $ 465,540
Due to related parties 1,925,104 2,233,771
------------------- --------------------
Total liabilities 2,403,701 2,699,311
Stockholders' Equity: 989,099 163,103
------------------- --------------------
Total liabilities and stockholders' equity $ 3,392,800 $ 2,862,414
=================== ====================