Nasdaq OMX Group Inc. (NDAQ) has reported third-quarter results. 

The company swung to a GAAP net income of $60 million or 28 cents per share compared to $69 million or 33 cents in the prior quarter and $58 million or 27 cents in the year-ago period. Results included one-time charges counting $25 million in debt conversion expense, $16 million in pre-tax expenses associated with asset retirements, workforce reductions and other non-recurring items, and $5 million in pre-tax merger expenses. 

Excluding these charges, pro forma earnings per share came in at 42 cents, in line with the Zacks Consensus forecast. Results were aided by growth in the company’s core businesses and significant progress from new initiatives. 

Net revenue (net of liquidity rebates, brokerage, clearance and exchange fees) slipped 4.9% sequentially and 12.5% year over year to $349 million. The decline was primarily attributable to foreign currency fluctuations. The company continued to expand its Market Technology business following its selection as the strategic technology provider to the Osaka Securities Exchange (OSE) and the Kuwait Stock Exchange (KSE). 

Total operating expenses decreased 11.3% year over year to $197 million primarily due to lower compensation expense, marketing and advertising expense, reduced expenses for computer operations and data transmission, besides lower general, administrative and other expense. 

Nasdaq has updated its 2009 guidance for total operating expenses to a range of $840 million to $850 million, including approximately $50 million in non-recurring costs. 

The company reduced total principal amount of debt obligations by $232 million to $452 million at the end of the quarter. The reduction was attributable to the repayment of $113 million on $2.0 billion term loan and the conversion of $119 million of 3.75% convertible notes held by Silver Lake and another holder into common equity. 

The world’s largest exchange, which operates across 70 bourses in more than 50 countries, offers trading, clearing and settlement in equities, futures, options, fixed-income and exchange-traded products.
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