Exhibit 99
OPTIONABLE INC REPORTS RECORD RESULTS FOR THE 2006 THIRD
QUARTER, FIRST NINE MONTHS
Briarcliff Manor, NY (October 25, 2006) ... Optionable, Inc (OTCBB: OPBL), a
leading provider of natural gas and other energy derivatives brokerage services,
announced today record results from operations for its third quarter and nine
months ended September 30, 2006, posting strong gains in revenue, net income and
EPS. The Company said that revenues increased 166 percent and 123 percent,
respectively, compared to prior year periods, and net income also reached all
time highs, increasing 216 percent and 270 percent, respectively, from the prior
year periods.
Revenues for the third quarter ended September 30, 2006 were $4.5 million, up
from $1.7 million for the third quarter of last year. Net income for the third
quarter increased to $2.2 million, up from $694,218 for the third quarter of
2005. Gross profit increased 153 percent to $2.7 million for this year's third
quarter compared to $1.1 million for the same period last year. Diluted earnings
per common share increased to $0.04 per share, on 51,680,993 diluted shares, for
the third quarter of 2006, versus $0.01 per share, on 51,461,963 diluted shares,
for the third quarter of 2005.
CEO Kevin Cassidy commented, "It is clear from the recent news headlines that
there is increased interest in derivatives trading. And we feel that the best is
yet to come for Optionable. Our record results for the third quarter have
primarily been achieved through traditional means of service of delivery,
voice-brokerage and open outcry. Our electronic platform, OPEX, which we
recently introduced, will gain adherents in the energy commodities markets and,
ultimately, with other commodities markets. The latest addition to our services
offering, OPEX Analytics, enables us to offer a broader variety of solutions to
satisfy our clients needs. We certainly would not be where we are without
providing consistent, timely, and outstanding quality services to our clients."
For the nine months ended September 30, 2006, Optionable reported that revenues
increased to $9.2 million from $4.1 million for the first nine months of last
year. Net income for the 2006 first nine months increased to $3.7 million
compared to $996,795 for the prior year period. Gross profit increased 156
percent to $5.3 million for the first nine months of this year compared to $2.1
million for the same period last year. Diluted earnings per common share
increased to $0.07 per share, on 51,688,736 diluted shares, for this year's
nine-month period, versus $0.02 per share, on 51,449,427 diluted shares, for
comparable period last year. As of September 30, 2006, the Company had cash and
cash equivalents of $4.4 million.
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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.
Contact Information:
Rudy Barrio (investors)
Allen & Caron Inc
Tel: 212 691 8087
Email: r.barrio@allencaron.com
-TABLES FOLLOW-
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OPTIONABLE INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Month Ended Nine Month Ended
September 30, September 30,
----------------------------- ------------------------------
2006 2005 2006 2005
-------------- -------------- --------------- --------------
Net revenues $ 4,526,967 $ 1,700,472 $ 9,237,627 $ 4,137,258
Cost of revenues 1,812,087 628,635 3,848,865 2,031,740
-------------- -------------- --------------- --------------
Gross profit 2,714,880 1,071,837 5,388,762 2,105,518
Total operating expenses 449,315 301,443 1,032,383 899,850
-------------- -------------- --------------- --------------
Operating income 2,265,565 770,394 4,356,379 1,205,668
Other expense, net (50,440) (76,176) (647,798) (208,873)
-------------- -------------- --------------- --------------
Net income before income tax 2,215,125 694,218 3,708,581 996,795
Income tax (24,052) - (24,052) -
-------------- -------------- --------------- --------------
Net income $ 2,191,073 $ 694,218 $ 3,684,529 $ 996,795
============== ============== =============== ==============
Basic earnings per common share $0.04 $0.01 $0.07 $0.02
============== ============== =============== ==============
Diluted earnings per common share $0.04 $0.01 $0.07 $0.02
============== ============== =============== ==============
Basic weighted average common shares outstanding 51,474,115 51,406,431 51,429,567 51,406,431
============== ============== =============== ==============
Diluted weighted average common shares outstanding 51,680,993 51,461,963 51,688,736 51,449,427
============== ============== =============== ==============
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OPTIONABLE INC
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30,
2006
Current Assets:
Cash $ 4,371,620
Accounts receivable, net 1,538,545
Other receivables 1,371,952
Other current assets 74,588
---------------
Total current assets 7,356,705
Other assets 192,895
---------------
Total assets $ 7,549,600
===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 1,703,126
Due to related parties 1,776,207
---------------
Total liabilities 3,479,333
Stockholders' Equity: 4,070,267
---------------
Total liabilities and stockholders' equity $ 7,549,600
===============
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