eTrade 1999 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 1999 eTrade annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 74

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74

September 30,
---------------------------------------------
1999 1998 1997 1996 1995
--------- --------- --------- -------
-------
(in thousands)
Consolidated Balance Sheet
Data*:
Cash and equivalents............ $ 85,734 $ 47,776 $ 47,141 $40,138
$30,397
Investment securities........... 189,145 502,534 191,958 35,563
560
Brokerage receivables--net...... 2,912,581 1,365,247 838,646 253,274
61,988
Total assets.................... 3,926,980 2,066,286 1,148,114 397,169
107,212
Mandatorily redeemable preferred
securities..................... -- 3,000 3,000 3,000 --
Shareowners' equity............. 913,667 734,410 303,694 89,785
27,908
* All prior year amounts presented have been restated to reflect the acquisitions of ClearStation and TIR during fiscal 1999, which
were accounted for as poolings-of-interests (see Note 16 of the Consolidated Financial Statements).
32
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Forward-Looking Statements
The following discussion of the financial condition and results of operations of E*TRADE Group, Inc. ("E*TRADE" or the
"Company") should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere herein.
This discussion contains forward-looking statements, including statements regarding the Company's strategy, financial performance
and revenue sources which involve risks and uncertainties. The Company's actual results may differ materially from those anticipated
in these forward-looking statements as a result of certain factors, including, but not limited to, those set forth elsewhere herein.
Overview
A leading branded provider of online investing services, E*TRADE has established a popular destination Web site for self-directed
investors. Founded in 1982, the Company operated initially as a service bureau, providing automated online securities transaction
services to various brokerage firms. In 1992, the Company formed E*TRADE Securities and began to offer retail investing services
and account information 24 hours a day, seven days a week. The Company offers independent investors the convenience and control of
automated stock, option, fixed income and mutual fund order placement at lower commission rates than traditional brokerage firms. In
addition, E*TRADE has a suite of value-added products and services that can be customized and personalized, including portfolio
tracking, Java-based charting and quote applications, real-time stock quotes, Smart Alerts, market commentary and analysis, news,
investor community areas and other information services.
Free resources available to the public on E*TRADE's Web site include breaking financial news, real-time stock and option price
quotes, company financial information and news announcements, live market commentary, personalized investment portfolios,
investor community areas, and search and filtering tools for mutual fund and fixed income products. E*TRADE's Web site services
three levels of investors--visitors, members, and customers, with each successive group gaining access to additional value-added
products and services. Visitors can view market information, headline news, stock quotes and charts, mutual fund information, and
much more. By registering but not opening an account, a visitor becomes a member and receives free access to many advanced,
customizable investment research tools, including free real- time quotes and secure email. Customers, those investors with E*TRADE
accounts, have complete access to E*TRADE's trading engine and to all the investment research and management features, including
Smart Alerts, and many sophisticated analytical and record keeping tools. Customers may also subscribe to E*TRADE's Professional
Edge service and apply for IPOs, as well as receive access to institutional quality research reports and other premium services.
2002. EDGAR Online, Inc.