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Jersey City, N.J. - DLJdirect
(NYSE: DIR), the online brokerage service of Donaldson, Lufkin & Jenrette, Inc. (NYSE: DLJ),
today reported record revenues of $114.7 million for the first quarter of 2000, a 142 percent
increase over the $47.4 million in revenues reported for the comparable period a year ago, and 50
percent over the $76.7 million for the fourth quarter of 1999. DLJdirect also reported net income
of $13.6 million, or $0.13 per share (diluted), for the first quarter of 2000. This represented a
$6.4 million or 90 percent increase over the $7.2 million or $0.07 per share (pro forma diluted) for
the first quarter of 1999, and a $15.6 million increase over the net loss of $2.0 million or $0.02
per share (diluted), for the fourth quarter of 1999.
"First quarter 2000 results set records of significant new proportions for DLJdirect," said Blake Darcy,
Chief Executive Officer. "Quarterly revenues came in just shy of full year 1998 revenues and our first
quarter pre-tax profit of $25.5 million was 42 percent higher than pre-tax profits in any full year of our
twelve-year history. Global customer assets reached a record $29.4 billion, with average assets per active
account increasing to $69,000, up from $63,000 at year-end 1999. We added over 82,000 new active accounts
worldwide this quarter, twice as many as last quarter, at an average global acquisition cost of $245 per
account." As of March 31, 2000, DLJdirect had 429,000 total active accounts.
Commissions reached $74.5 million in the first quarter, up 133 percent over the comparable period one year
ago and 68 percent over the fourth quarter of 1999. Fee income more than doubled over the first quarter
of 1999 to $18.7 million. iNautix Technologies Inc., DLJdirect's technology subsidiary, continued to
increase its contribution to fee income by posting record quarterly fees of $8.4 million, up 100 percent
from one year ago and 13 percent over the fourth quarter of 1999. iNautix designs, develops, and hosts
global e-commerce solutions, and its products are now being used by more than 80 financial services firms.
Net interest increased three-fold year-over-year and 33 percent sequentially as DLJdirect's strategy to
focus on high-net-worth individuals resulted in increased margin activity. Underwriting revenues declined
slightly from the record set in the fourth quarter of 1999 to $3.1 million. DLJdirect served as co-manager
for $1.5 billion of IPO offerings during the quarter, and was the number two on-line distributor of IPOs
for the first quarter, according to Securities Data Corporation. The Street.com ranked DLJdirect number
one for IPO availability.
Record Trading Volumes
DLJdirect executed a record 2.8 million trades domestically during the first quarter, one million more
than in the prior quarter. On a worldwide basis, average daily trades were 50,300, a 65 percent increase
over the previous record volume set in the fourth quarter of 1999. "With record setting volume and market
volatility this quarter, our systems were certainly pressure tested," said Glenn Tongue, President of
DLJdirect. "Even with these extraordinary activity levels, I am proud to report that we continue to
receive the highest rankings awarded by independent third parties for the quality of our systems and
services in each of our local markets."
Blake Darcy added, "We realize that our continued success is
based on the reliability of our systems and our ability to provide superior service to our clients. To
that end, we recently completed the installation of a new, fully redundant data center and are opening a
new Investor Service Center in Sandy City, Utah - our fourth in the U.S. Hiring and training have already
begun for this facility, which will open later this year and ultimately accommodate 1,000 additional
Investor Service Representatives."
Record International Results
The international component of DLJdirect's business experienced significant growth milestones during the
first quarter as well, with international activities representing 12 percent of total trades, 9 percent of
active accounts, and 8 percent of client assets. DLJdirect SFG Securities Inc., which began operations in
Japan in June 1999, added 13,000 active accounts during the first quarter of 2000, a 44 percent increase
over the 9,000 accounts added last quarter, nearly doubling the total number of active accounts in Japan
to 27,000. DLJdirect SFG continued to add to its product and service offerings with PC voice-recognition
capabilities, allowing investors to trade securities by speaking into their computers. In addition,
DLJdirect Village, the first Internet brokerage branch office in Japan, opened on February 29th. Japanese
investors have access to local as well as U.S. stock markets through DLJdirect SFG.
DLJdirect UK more than tripled its account base during the first quarter of 2000, adding 9,000 active new
accounts, for a total active account base of 13,000 after only six months of operation. DLJdirect UK,
which offers access to local and U.S. stock markets, continues to add new products to its offerings and
recently introduced ISA accounts to UK investors. ISAs, which are similar to U.S. Individual Retirement
Accounts, offer investors an opportunity to shelter their investment profits from capital gains taxes.
During the first quarter, DLJdirect announced an agreement with Hong Kong-based Hutchison Whampoa Limited
of Hong Kong to form a new company to distribute DLJdirect's online brokerage services to countries
throughout Asia. The new company, DLJ Hutchison direct Limited, will service investors in Hong Kong,
mainland China, Thailand, Singapore, Malaysia, the Philippines, Taiwan, and Indonesia. A second joint
venture was announced during the first quarter with Capital Union E.C. and Webtrade eVentures Ltd. The
company formed as a result of that initiative, DLJdirect-eUnion, commenced operations on April 15th,
providing online discount brokerage services to investors in 14 countries in the Middle East and North
Africa.
Awards and Accolades
DLJdirect received four stars, the highest rating awarded, in Barron's fifth annual review of online
brokers. Measurements included execution, ease of use, reliability, commissions, and range of offerings.
DLJdirect was again named "Best of the Web" in the Spring 2000 special Internet issue of Forbes magazine,
and in TheStreet.com Readers' Online Brokers Survey 2000, DLJdirect received number one rankings for
reliability, real-time market and company news, IPO availability, bond and options trading, and e-mail
alerts.
DLJdirect's proprietary investment management and online trading software, DLJdirect MarketSpeedTM 3.0,
was awarded "E-Commerce Software - Best Product" and "Online Brokerage Service - Best Product" by the
Software & Information Industry Association at the 2000 Codie Awards ceremony honoring excellence for
software and information products and services. The DLJdirect Web site continued to earn top rankings in
the Keynote Web Broker Trading Index for average response time and success rate for standard stock-order
transactions.
In addition to its U.S. awards, DLJdirect has also achieved accolades for its international platforms.
Kabuko, a Japanese Web site that ranks online brokerages and other service providers, rated DLJdirect
SFG the best online broker in Japan. DLJdirect UK received top-rated online broker and Web site awards
from Find.co.uk, the leading directory for UK financial services, Investors Chronicle, and the Moneywise
2000 Guide to Online Broking.
About DLJdirect
DLJdirect is one of the world's premier online brokerage firms. Established in 1988, DLJdirect offers a
diversified range of investment products and services to sophisticated, self-directed investors. As of
March 31, 2000, DLJdirect had more than 930,000 worldwide customer accounts representing $29.4 billion in
assets. Headquartered in Jersey City, N.J., with offices in Parsippany, N.J., Charlotte, N.C., London,
Tokyo, Hong Kong, and Dubai, DLJdirect employs more than 1,000 people. DLJdirect common stock trades on
the New York Stock Exchange under the ticker symbol "DIR." For more information on DLJdirect, visit the
company's Web site at www.DLJdirect.com.
About Donaldson, Lufkin & Jenrette
Donaldson, Lufkin & Jenrette (DLJ) is a leading integrated investment and merchant bank serving
institutional, corporate, government and individual clients. DLJ's businesses include securities
underwriting; sales and trading; investment and merchant banking; financial advisory services; investment
research; venture capital; correspondent brokerage services; online, interactive brokerage services; and
asset management. Founded in 1959 and headquartered in New York City, DLJ employs approximately 10,600
people worldwide and maintains offices in 13 cities in the United States and 16 cities in Europe, Latin
America and Asia. The company has two classes of common stock trading on the New York Stock Exchange.
Shares trading under the ticker symbol "DLJ" represent Donaldson, Lufkin & Jenrette, Inc. Shares trading
under the ticker symbol "DIR" track the performance of DLJdirect, its online brokerage business. For more
information on Donaldson, Lufkin & Jenrette, refer to the company's Web site at http://www.DLJ.com. The firm's
world headquarters are located at 277 Park Avenue, New York, NY 10172.
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