Cowen Group, Inc. Announces 2008 First Quart...( NEW YORK May 8 /- Cowen Group Inc...),Health

NEW YORK, May 8 /PRNewswire-FirstCall/ -- Cowen Group, Inc. (Nasdaq: COWN) today announced its operating results for the quarter ended March 31, 2008.

Total revenue for the quarter ended March 31, 2008 was $55.0 million, representing a decrease of 25% from $73.5 million in the prior year period. For the quarter ended March 31, 2008, the Company reported net income of $0.7 million, or $0.05 per fully diluted share, compared to net income of $2.5 million in the prior year period, or $0.18 per fully diluted share. The Company's results for the first quarter of 2008 included a reversal of $5.1 million in compensation expense related to amounts previously expensed in 2006 and 2007 associated with the equity award that was forfeited by Kim S. Fennebresque in connection with his resignation as President and Chief Executive Officer. Excluding compensation expense related to employee stock awards in connection with our initial public offering, the Company's adjusted net operating loss for the first quarter of 2008 was $0.6 million compared to its adjusted net operating income of $2.9 million in the prior year period (see "Financial Measures" below for a discussion of adjusted operating income).

"Capital markets conditions, particularly with respect to the new issue market, remained very challenging in the first quarter of 2008," said David M. Malcolm, Chief Executive Officer. "Though our overall results were negatively impacted by lack of new issue market activity, Cowen continued to perform well in other areas including our strategic advisory practice where revenue increased 39% year-over-year and our sales and trading group where core brokerage revenue increased 8% sequentially and was relatively flat year-over-year. I am also pleased with our recent accomplishments in growing the business through continued progress in our alternative asset management area and our proposed geographic expansion into Asia. Our backlog remains strong and I am confident th
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