ITGI revenue news released
Recurring revenues of $17.2 million were driven primarily by the acquisitions of Macgregor and Plexus and include subscription based revenues generated principally from our network connectivity services, order management systems, and our analytical products. Excluding the Macgregor and Plexus acquisitions recurring revenues increased 6% to $2.6 million.
Other revenues, which included $7.8 million related to the NYSE Transaction (as discussed in “Executive Summary” above), increased $9.7 million in First Quarter 2006.
Total expenses increased $27.8 million or 56% compared to First Quarter 2005. Excluding the expenses of Macgregor and Plexus ($17.2 million), expenses from U.S Operations grew 21%.
U.S. compensation and employee benefits expense increased by $16.6 million, or 68% primarily reflecting higher headcount associated with the Macgregor and Plexus acquisitions ($8.7 million) and higher performance based compensation and employee benefits including bonuses, profit sharing and stock-based compensation. Also contributing to these costs was additional headcount related to new product development, sales and support.
Interest expense reflects the cost of our borrowings to finance the acquisitions of Macgregor and Plexus, as discussed in Note 10 to the condensed consolidated financial statements and in “Liquidity and Capital Resources”.
Other expenses increased $6.8 million or 41%, of which $5.4 million relates to the First Quarter 2006 Macgregor and Plexus acquisitions, which were not included in First Quarter 2005 results. Also contributing to the growth in other expenses were (i) higher overall business activity, (ii) higher marketing costs related to our marketing/branding efforts, and (iii) higher consulting fees, primarily related to systems and new business development activities. During First Quarter 2006, we changed our estimate of the useful life of our capitalized software from two years to three years resulting in lower software amortization expense of $0.9 million (see Note 1, “Organization and Basis of Presentation”, to the condensed consolidated financial statements and “Critical Accounting Policies and Estimates”), which partially offset these increases
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