MENLO PARK, Calif. -- E*Trade Group, Inc. (NYSE: ET - News) closed its New York Center and 43 E*Trade Financial Target Zones in 2003's second quarter, part of the company's restructuring and cost control efforts that cost it $76 million in the second quarter.
The company intends to take an additional charge of approximately $45 million next quarter.
R. Jarrett Lilien, president and chief operating officer of E*Trade Group, said in a news release that the company is ahead of schedule on its restructuring efforts. "Moving forward, we will remain diligent in our efforts to reduce operating costs and are confident that these actions will provide long-term benefits to shareholders," he said.
E*Trade rolled out the Target Zones in late 2001 and early 2002 as part of its effort to establish a physical presence. The 400-square-foot financial centers featured ATMs and kiosks that allowed customers to open E*Trade accounts, get market updates and make stock trades.
Though no Target Zones remain, E*Trade Centers are still open in San Francisco, Denver, Boston and Los Angeles.
E*Trade posted net income of $12.7 million, or three cents a share in 2003's second quarter, compared with $32.8 million, or nine cents a share, in 2002's second quarter.
Revenue grew 21 percent to $381.1 million from $316.1 million.
Excluding the restructuring charges, $22.3 million in investment gains and a variety of small one-time items, E*Trade said earnings from continuing operations were $50.8 million, or 14 cents a share, matching analysts' estimates. Year-earlier earnings from continuing operations, excluding items, were $39 million, or 11 cents a share.
E*Trade said it now expects 2003 earnings excluding items of 52 cents to 57 cents a share. The company in April had projected full-year earnings of 45 cents to 55 cents a share.
