James Cayne Despite Quotations

Operating profits were up, despite a decline in net revenues, largely due to the fact that expense reductions from our margin improvement program have now been realized and incorporated into our earnings,

We achieved solid results this quarter, despite more volatile market conditions and declining trading volumes, predominantly in the fixed-income markets. Furthermore, weakness in the Nasdaq, particularly technology shares, led to a decline in equity new issue activity.

Despite the Asian economic crisis, we continued to find opportunities in the Far East, ... We attribute the record results for the quarter and the fiscal year to strength in all of the firm's core businesses.