The Nasdaq Stock Market Inc. reported a third quarter profit of US$17.8 million, compared with a net loss of US$5.5 million for the third quarter 2004.

Net income for the quarter is also up 27.1% compared with the second quarter of 2005. This represents the fourth straight quarter of profit growth for the firm.

Nasdaq has also revised its expectations of results upward for the full-year 2005. It now expects net income in the range of US$57.0 million to US$60.0 million for the year. Total expenses are projected to decline to a range of US$406.0 million to US$411.0 million.

Total expenses for the third quarter 2005 include pre-tax charges of US$4.5 million as part of continuing efforts to reduce operating expenses and improve the efficiency of operations.

Nasdaq’s CFO, David Warren, commented in a release, “Nasdaq continues to benchmark well against our stated cost reduction plan, leading to another upward revision in our 2005 outlook. These expectations include, as we have previously discussed, lower fourth quarter revenues associated with the retirement of a legacy access services product and seasonally higher marketing spending.”

“Looking out to next year, we intend to move forward with our expense reduction plan while simultaneously developing the revenue growth opportunities inherent in Nasdaq’s diverse revenue streams,” he added. “We plan to provide a more specific 2006 outlook when the acquisition of INET is consummated.”

“This quarter we continued to demonstrate our ability to innovate through the introduction of new products and services, and remain committed to product enhancements that differentiate Nasdaq from the competition,” said Nasdaq’s CEO, Robert Greifeld.

“With the organization focused, offering an array of innovative products, and continuing to improve our operating leverage, we believe that Nasdaq is well-positioned to succeed in a changing competitive landscape.”