Consolidated EarningsFirst Quarter Highlights
In the face of the continuing difficult and challenging credit and liquidity conditions in all global capital markets, especially in the U.S. capital markets, the Company generated first quarter total revenue of $32.2 million compared to $55.5 million in the first quarter of 2007, a decrease of $23.4 million or 42.1%.
This decrease in operating income is attributable to the decrease in production volumes and related revenue from the prior year in several of the Company's capital markets services platforms. Offsetting this decrease in revenue of approximately $23.4 million is a reduction in total operating expenses of approximately $14.1 million in the first quarter 2008 compared to the same period of the prior year.
This reduction in operating expenses is a result of a decrease in cost of services of approximately $11.0 million which is primarily due to the decrease in commissions and other incentive compensation directly related to the lower capital markets services revenues and a decrease in operating, administrative and other expenses (including depreciation and amortization) of $3.1 million, which is primarily related to a reduction in other performance based accruals and depreciation and amortization.