Nasdaq feels effects of failed LSE bid

Nasdaq Stock Market Inc. posted a disappointing 1.7% increase in first quarter net income due to charges related to its failed bid to acquire the London Stock Exchange. Net income inched up to $18.3 million, or 14 cents per share, compared to $18 million, or 16 cents per share in the year-ago period. Excluding a $24.9 million charge for costs related to its offer for the LSE and other items, the exchange posted adjusted earnings of $41.8 million, or 29 cents per share, for the first quarter of 2006. Nasdaq reported $26.2 million, or 22 cents per share, during the year-ago quarter. Revenues for the quarter increased 18.6% to $192.1 million, up from $162 million during the year ago-period. Analysts surveyed by Thomson Financial had forecast profit of 21 cents per share. Furthermore, the Exchange a $10.6 million charge related to a clearing contract and a $7.8 million loss on foreign currency option contracts. Average daily share volume increased to 1.4% to 2.15 billion, compared to $2.12 billion during the year-ago period. The number of companies that made their initial public offerings on Nasdaq also increased, rising from to 37 from 30 during the year-ago period.