Ameritrade Holding Corp - Bear Market Dampened Revenue Outlook, 2000-2001

BEAR MARKET DAMPENED REVENUE OUTLOOK (2000-2001)

A slumping stock market and lower trading volume by its customers caused Ameritrade to report a $23 million loss for the quarter ending December 31,2000. Unfavorable market conditions held through the next quarter, causing Ameritrade to cut its revenue outlook for fiscal 2001 to between $470 million and $600 million, down from earlier projections of $570 million to $650 million. Trading volume for Ameritrade's customers averaged 131,000 a day in January and 114,000 in February. In March 2001 the company hired Joseph Moglia as its new CEO. Moglia was formerly a senior vice president at Merrill Lynch & Co. Ricketts would remain as Ameritrade's chairman. With the company projecting a fiscal 2001 loss of $43.7 million, Ameritrade was taking steps to cut costs and remain financially healthy. In January the company laid off 9 percent of its workforce, and a debt-repurchase program was expected to cut interest expenses.