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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2003

Commission File Number 0-26225

SOUNDVIEW TECHNOLOGY GROUP, INC.
(Exact Name of Registrant as Specified in Its Charter)

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months, and (2) has been subject to such filing requirements for the past ninety days: Yes ý No o

        Indicate by check mark whether registrant is an accelerated filer (as defined in Rule 12-b-2 of the Exchange Act) Yes o No o

        As of May 8, 2003, there were 107,291,339 shares of the Registrant's common stock outstanding.

SOUNDVIEW TECHNOLOGY GROUP, INC.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS

PART I—Financial Information

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PART I

Item 1—Consolidated Financial Statements

SOUNDVIEW TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
MARCH 31, 2003 AND DECEMBER 31, 2002

The accompanying notes are an integral part of these consolidated statements.

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SOUNDVIEW TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002

The accompanying notes are an integral part of these consolidated statements.

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SOUNDVIEW TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002

The accompanying notes are an integral part of these consolidated statements.

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SOUNDVIEW TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2003 AND 2002

1.     ORGANIZATION AND BASIS OF PRESENTATION

        SoundView Technology Group, Inc. (the "Company") was incorporated on March 27, 1996 and commenced operations in September 1997. The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries, SoundView Technology Corporation ("STC"), Wit Capital Corporation ("WCC"), SoundView Technology Group PLC ("STGE") and SoundView Ventures Corp. ("SoundView Ventures").

        The Company is a research driven technology-focused securities firm that provides services to an institutional and issuer client base. The Company produces comprehensive sell-side research on over 160 technology companies. The Company's brokerage operations provide a variety of sales and trading services to institutional investors. Through the Company's venture capital operations, it has established and currently manages a number of venture capital funds that provide investors with the opportunity to participate in technology and internet related investments.

        STC has an agreement with Bear Stearns & Co. ("Bear Stearns" or the "clearing broker"), pursuant to which Bear Stearns clears securities transactions, carries customers' accounts on a fully disclosed basis, and performs record keeping functions for STC.

        These financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and, in the opinion of management, reflect all adjustments necessary for a fair presentation of the results for the periods presented in conformity with accounting principles generally accepted in the United States. These financial statements should be read in conjunction with the Company's audited financial statements included in the Company's Annual Report on Form 10-K filed with the SEC on March 21, 2003. Results of the interim periods are not necessarily indicative of results to be obtained for a full fiscal year.

2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

        The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Management believes that the estimates utilized in preparing its financial statements are reasonable. Actual results could differ from these estimates.

Reclassifications

        Certain prior year balances have been reclassified to conform with the current year's presentation.

Principles of Consolidation

        The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries STC, WCC, and SoundView Ventures, as well as its majority-owned subsidiary STGE. Material intercompany balances and transactions have been eliminated in consolidation.

Cash and Cash Equivalents

        The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents are comprised primarily of deposits with financial

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institutions which are invested in non-interest bearing accounts ($6.1 million), money market instruments ($34.1 million) and short-term commercial paper ($12.5 million).

Other Short Term Investments

        This balance is comprised of funds deposited in a short term bond fund that invests primarily in high quality diversified fixed income securities where the target duration is nine months.

Investments

        The Company holds investments in publicly traded and privately held entities that are accounted for at market or fair value, with the accompanying gains and losses reflected in the Company's results of operations. The determination of fair value requires management to make estimates based on available information, including the entities' earnings, sales, operating developments and recent transactions in the entities' securities. The determination of fair value may not necessarily represent the amounts that might ultimately be realized, since such amounts depend on future circumstances and cannot be determined until the investments are actually liquidated.

Goodwill and Other Intangible Assets

        Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that also lack physical substance but can be distinguished from goodwill. On January 1, 2002, the Company adopted Statement of Financial Accounting Standards ("SFAS") No. 142, "Goodwill and Other Intangible Assets." Under the provisions of SFAS No. 142, goodwill is no longer amortized into the income statement over an estimated life, but rather is tested at least annually for impairment. Other intangible assets, which have finite lives, continue to be amortized over their estimated useful lives and are subject to impairment testing under the provisions of SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets."

Furniture, Equipment and Leasehold Improvements

        Furniture, equipment and leasehold improvements are carried at cost less accumulated depreciation and amortization. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives of the related assets, ranging from two to three years for furniture and computer hardware. Leasehold improvements are amortized on a straight-line basis over the lesser of the life of the lease or the remaining useful lives of the improvements, which range from three to eight years.

Computer Software

        Costs capitalized related to the purchase of computer software are being amortized over a period of three years. Costs capitalized related to the development of software for internal use are amortized over the estimated useful lives of the software, generally over periods of between one and three years.

Fair Value of Financial Instruments

        Substantially all of the Company's financial instruments are carried at fair value or amounts approximating fair value. Assets, including cash and cash equivalents, other short term investments, receivable from clearing broker, securities owned, and investments are carried at fair value or contracted amounts, which approximate fair value. Similarly, liabilities including securities sold, not yet purchased and certain payables are carried at fair value or contracted amounts, which approximate fair value due to their relatively short-term nature.

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Revenue Recognition

        Securities owned and securities sold but not yet purchased in the Company's proprietary trading accounts consist of securities in corporate stocks, and are stated at quoted market values. Transactions involving such securities are recorded on a trade date basis with any related net gain or loss included in brokerage revenue in the statements of operations.

        Investment banking revenue is generated as a result of the Company managing, co-managing and participating in various underwritings, private placements, mergers and acquisitions and from advisory or other services provided to clients. Fees from investment banking activities are recognized when the offering or services are complete and the income is reasonably determinable.

        Asset management fees are computed as a percentage of capital commitments of the funds under management and are recognized as earned.

        Securities owned for investment purposes consist of publicly traded and privately held securities and are stated at market or fair value, with accompanying gains or losses included in loss on investments in the statements of operations.

Lease Loss

        The Company records a loss reserve for the impairment of its obligations under certain of its operating leases for unoccupied office space when estimated expected future cash flows are not sufficient to cover the lease obligation for the remainder of the lease term because its lease commitment exceeds the expected sublease payments from the leased property or because of the time frame the Company estimates for sublease.

Stock Based Compensation

        In December 2002, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 148, Accounting for Stock-Based Compensation—Transition and Disclosure, an amendment of FASB Statement No. 123. SFAS No. 148 provides alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation. In addition, SFAS No. 148 amends the disclosure requirements of SFAS No. 123 to require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results. The disclosure requirements of SFAS No. 148 are effective for fiscal years ending after December 15, 2002 and for interim periods beginning after December 15, 2002.

        As permitted by SFAS No. 123, Accounting for Stock-Based Compensation, the Company has accounted for options granted to employees using the intrinsic value method prescribed by Accounting Practice Bulletin ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees." The Company has granted options with exercise prices that are equal to or greater than the market price of such common stock at the date of grant, and accordingly, the Company has recorded no related compensation expense. For restricted stock issued with future service requirements, compensation expense is recognized over the relevant vesting period.

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        If the Company had recorded compensation expense for its stock options granted for the three months ended March 31, 2003 and 2002, in accordance with SFAS No. 123, the Company's pro forma net loss and pro forma net loss per share would be as follows:

Reportable Operating Segment

        The Company considers its present operations to be one reportable segment for purposes of presenting financial information and for evaluating its performance. The financial statement information presented in the accompanying consolidated financial statements is consistent with the preparation of financial information for the purpose of internal use.

Income Taxes

        The Company accounts for income taxes in accordance with the provisions of SFAS No. 109, "Accounting for Income Taxes," which requires the recognition of deferred tax assets and liabilities at tax rates expected to be in effect when these balances reverse. Future tax benefits attributable to temporary differences are recognized to the extent that realization of such benefits is more likely than not.

New Accounting Pronouncements

        In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated with Exit or Disposal Activities. This statement addresses financial accounting and reporting for costs associated with exit or disposal activities. The provisions of SFAS 146 are effective for exit or disposal activities that are initiated after December 31, 2002, with early application encouraged. The Company does not believe that the implementation of SFAS 146 will have a material impact on its consolidated financial statements.

        In November 2002, the FASB issued Interpretation No. 45, Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others ("FIN 45"). Guarantees meeting the characteristics described in FIN 45 are required to be initially recorded at fair value, which is different from the general current practice of recording a liability only when a loss is probable and reasonably estimable, as those terms are defined in FASB Statement No. 5, Accounting for Contingencies. FIN 45 also requires a guarantor to make significant new disclosures for virtually all guarantees even when the likelihood of the guarantor's having to make payments under the guarantee is remote. FIN 45's disclosure requirements are effective for financial statements of interim or annual periods ending after December 15, 2002. FIN 45's initial recognition and initial measurement provisions

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are applicable on a prospective basis to guarantees issued or modified after December 31, 2002, irrespective of the guarantor's fiscal year-end.

        In January 2003, the FASB issued Interpretation No. 46, Consolidation of Variable Interest Entities ("FIN 46"). The objective of FIN 46 is to improve financial reporting by companies involved with variable interest entities. A variable interest entity is a corporation, partnership, trust, or any other legal structure used for business purposes that either (a) does not have equity investors with voting rights or (b) has equity investors that do not provide sufficient financial resources for the entity to support its activities. FIN 46 requires a variable interest entity to be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity's activities or is entitled to receive a majority of the entity's residual returns or both. FIN 46 also requires disclosures about variable interest entities that the company is not required to consolidate but in which it has a significant variable interest. The consolidation requirements of Interpretation 46 apply immediately to variable interest entities created after January 31, 2003. The consolidation requirements apply to older entities in the first fiscal year or interim period beginning after June 15, 2003. Certain of the disclosure requirements apply in all financial statements issued after January 31, 2003, regardless of when the variable interest entity was established. As of March 31, 2003, the Company has not yet determined what effect, if any, FIN 46 will have on its consolidated financial statements.

3.     SECURITIES OWNED

        As of March 31, 2003 and December 31, 2002, certificates of deposit are pledged as collateral for certain of the Company's lease commitments.

4.     LOSS FROM CONSOLIDATION OF OFFICE SPACE

        The Company recorded a loss from consolidation of office space of approximately $8.5 million for the three months ended March 31, 2002. This charge included an adjustment to the estimated reserve for the Company's lease commitment through March 2011 for an unused portion of its office space in San Francisco, California that is being held for sublease at a lower rate than the lease rate. The following table summarizes the reserve activity for unoccupied office space during the quarter ended March 31, 2003:

5.     GOODWILL AND OTHER INTANGIBLE ASSETS

        The Company adopted SFAS No. 142 on January 1, 2002. SFAS No. 142 requires that the Company's goodwill be evaluated for impairment upon adoption and at least annually thereafter which the Company has determined will occur in its fiscal fourth quarter in the absence of circumstances suggesting an evaluation in an earlier quarter. In connection with the initial adoption of SFAS No. 142, on January 1, 2002, the Company determined that no adjustment was necessary to the carrying value of its goodwill. Subsequent to the adoption of SFAS No. 142, the continued economic slowdown and

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weakened business environment as well as other factors negatively impacted the Company's business. During the fourth quarter of 2002, the Company performed its annual evaluation of its enterprise value to make a determination as to whether the recorded amounts of goodwill were potentially impaired. In estimating the fair value of the enterprise, the Company used valuation techniques based on market capitalization and market multiples for comparable businesses. Based on this evaluation, the Company determined that the carrying value of its goodwill was impaired and recorded an impairment charge of $163.3 million in 2002.

        Additionally, the Company adopted SFAS No. 144 on January 1, 2002. Under the provisions of SFAS No. 144, an impairment loss is recognized when the estimate of undiscounted future cash flows generated by an asset is less than its carrying amount. Measurement of the impairment loss is based on the present value of the expected future cash flows. During the three months ended March 31, 2002, the Company wrote-off the carrying value of its investment advisory intangible asset as the fund from which it earned incentive royalties under an agreement with the manager ceased operations. In addition, the Company determined that the carrying value of its intangible asset related to employee non-compete agreements was impaired. Accordingly, in 2002, the Company recorded an impairment charge of $2.5 million related to these assets.

        In accordance with the provisions of SFAS No. 142, the Company's goodwill and trade name intangible asset are not being amortized. There was no change in the carrying amount of goodwill and the trade name intangible asset during the three months ended March 31, 2003 and 2002.

        Intangible assets subject to amortization under SFAS No. 142 at March 31, 2003 include the institutional client relationship intangible asset which is currently being amortized over its remaining useful life of 13 years. The estimated annual amortization expense related to the institutional client relationship intangible asset is approximately $4.1 million. The following table sets forth the gross carrying value, accumulated amortization and net carrying amount of intangible assets subject to amortization at March 31, 2003 and December 31, 2002:

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6.     INCOME TAXES

        The Company files consolidated Federal and combined state and local income tax returns with certain of its wholly-owned subsidiaries. The components of the Company's income tax benefit for the three-month periods ended March 31, 2003 and 2002 are as follows:

        The effective income tax rate differs from the amount computed by applying the federal statutory income tax rate because of the effect of state and local taxes and certain nondeductible expenses, including amortization of intangible assets. For the three months ended March 31, 2003, the difference is additionally attributable to the establishment of a valuation allowance against the net deferred tax asset balance.

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        For the three months ended March 31, 2003, the Company recorded a valuation allowance of $0.6 million against the income tax benefit generated from the Company's operating losses during the period. The valuation allowance was calculated in accordance with the provisions of SFAS No. 109, Accounting for Income Taxes, which places primary importance on the Company's historical results of operations. Although the Company's results in prior years were significantly affected by restructuring and other charges, the Company's historical losses combined with the losses incurred in the current fiscal year represent negative evidence sufficient to require a full valuation allowance under the provisions of SFAS 109. If the Company is able to realize part or all the deferred tax assets in future periods, it will reduce its provision for income taxes with a release of the valuation allowance in an amount which is more likely than not expected to be realized. The majority of the Company's net operating loss carryforwards totaling $37.2 million expire in 2018 through 2022.

7.     EMPLOYEE BENEFIT PLANS AND OTHER COMPENSATION

Stock Incentive Plan

        The Company has adopted a stock incentive plan (the "Plan") that permits the granting of stock options, restricted stock and other awards to employees, directors and certain consultants of the Company. The exercise price of any share covered by an option granted to a person owning more than 10% of the voting power of all classes of stock of the Company cannot be less than 110% of the fair market value on the day of the grant. The exercise price of any share covered by an option granted to any person cannot be less than 85% of the fair value on the day of the grant. Options expire five or ten years from the date of grant, with the majority of the options expiring in the year 2012.

        As of March 31, 2003, the Company had 14,463,822 outstanding options with a range of exercise prices between $0.60 and $34.88 per share and a weighted average exercise price of $2.44.

8.     WARRANTS OUTSTANDING

        As of March 31, 2003 and December 31, 2002, the Company had 5,744,255 outstanding warrants with a range of exercise prices between $1.43 and $5.57. These warrants are exercisable for 106,960 shares of common stock and 5,637,295 shares of Class B Common Stock. The majority of these warrants expire in 2004.

9.     COMMITMENTS AND CONTINGENCIES

        The Company has operating leases covering office space in Old Greenwich, Connecticut, San Francisco, California, Boston, Massachusetts and London. These leases include scheduled rent increases and have various expirations ranging from 2006 to 2011.

        The Company is obligated under four leases for office space that it does not occupy. Included in the table below are commitments for one of those leases in San Francisco, California totaling $7.2 million, however sublease payments for the life of the lease totaling $7.6 million are not included as an offset to the future minimum payments. Also included in the table below are future commitments of $23.5 million related to another lease in San Francisco, California for unoccupied office space. Additionally, due to the discontinuance of the Company's European operations in the first quarter of 2002, the Company is no longer occupying its office space in London. Two floors of the space included in that lease have been assigned to another tenant under the same terms as the original lease. However, the Company has guaranteed that assignment, and therefore remains liable for the lease payments in the event the assignee does not pay. The total lease commitment of $3.9 million covered under the assignment is not included in the table below. The third floor included in the London lease, for a total commitment of $2.2 million through 2010, is included in the table below; however, sublease payments for that space totaling $490,000 through 2006 are not included as an offset to the future

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minimum payments. As of March 31, 2003, the Company has recorded $17.9 million in reserves for the decline in market value of the leases mentioned above.

        Future lease commitments for the remainder of 2003, the succeeding four years and thereafter are as follows:

        The Company is currently subject to claims and legal proceedings arising in the normal course of its business. In the opinion of management, the resolution of such claims and legal proceedings should not have a material adverse effect on the financial position, results of operations or liquidity of the Company.

        The Company has committed $10 million as a limited partner in Dawntreader Fund II LP, which is managed by the Company's Venture Capital Fund Group. As of March 31, 2003, there is approximately $3.9 million of the Company's commitment remaining to be drawn down by the fund. The fund's term ends on December 31, 2010, but may be extended for up to two additional one-year periods.

        The Company is committed under contract with certain key employees to pay guaranteed compensation of approximately $10.4 million for the year ended December 31, 2003.

10.   DISCONTINUANCE OF EUROPEAN OPERATIONS

        For the three months ended March 31, 2002, the Company reported a $6.3 million charge for severance and other costs associated with closing STGE's operations. This charge was offset by an $8.1 million gain from the elimination, in March 2002, of the minority interest liability in STGE due to a third party for a nominal amount.

11.   NET CAPITAL REQUIREMENTS

        As a registered broker-dealer, STC is subject to the SEC's Uniform Net Capital Rule 15c3-1 (the "Rule"). STC has elected to use the alternative method permitted by the Rule. Under the alternative method, STC is required to maintain minimum net capital, as defined, equal to the greater of $250,000 or an amount determinable based on the market prices and number of securities in which STC acts as a market maker. Net capital and aggregate minimum requirements change from day to day. As of March 31, 2003 and December 31, 2002, STC had net capital of $99.1 million and $99.3 million, respectively, which was $98.2 million and $98.4 million in excess of the minimum net capital requirements, respectively. The capital rules of the SEC and NASD also provide that equity capital may not be withdrawn or cash dividends paid if resulting net capital would be less than the minimum requirements. Capital withdrawals are also subject to certain notification and other provisions of the SEC. Under the clearing arrangement with the clearing broker, the Company is required to maintain certain minimum levels of net capital (equal to the greater of $150,000 or minimum net capital under the Rule) and comply with other financial ratio requirements. As of March 31, 2003, the Company was in compliance with all such requirements. Proprietary accounts held at the clearing broker ("PAIB Assets") are considered allowable assets in the computation of net capital pursuant to a clearing agreement between STC and the clearing broker which requires, among other things, for the clearing

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broker to perform a computation of PAIB Assets similar to the customer reserve computation under SEC Rule 15c3-3.

12.   NET LOSS PER SHARE

        The following table sets forth the calculation of shares used in the computation of basic and diluted net loss per share:

        Because the Company reported a net loss for these periods, the calculations of diluted earnings per share in those periods do not include options, warrants and common stock collateralizing the notes receivable from stockholders, as they are anti-dilutive and would result in a reduction of net loss per share. If the Company had reported net income, there would have been an additional 324,856 shares and 7,019,855 shares for the three month periods ended March 31, 2003 and 2002, respectively, included in the calculation of diluted earnings per share.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

        The following discussion should be read with the consolidated financial statements of SoundView Technology Group, Inc. and subsidiaries and related notes thereto.

Critical Accounting Policies

        For a description of critical accounting policies, including those which involve varying degrees of judgment, see Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2002.

Overview and Business

        SoundView Technology Group, Inc. was incorporated on March 27, 1996 and commenced operations in September 1997. The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, SoundView Technology Corporation ("STC"), Wit Capital Corporation ("WCC"), SoundView Technology Group PLC ("STGE") and SoundView Ventures Corp.

        SoundView is a research driven, technology-focused securities firm. SoundView produces comprehensive sell-side research on over 160 technology companies. Our brokerage operations provide a variety of sales and trading services to institutional investors. We leverage our technology expertise through a sales force which has a comprehensive understanding of the complex and diverse technologies involved in technology-focused investing. Our investment banking services include public underwriting, mergers and acquisitions and strategic services and private equity. Our venture capital operation has established and currently manages a number of venture capital funds that provide investors with the opportunity to participate in technology related investments.

        On January 31, 2000, Wit Capital Group, Inc. completed a merger with SoundView Technology Group, Inc. ("STG"). From June 2000 to August 2001, the combined company operated as Wit SoundView Group, Inc. and in August 2001, the combined company changed its name to SoundView Technology Group, Inc. All references to "SoundView," the "Company," "us," "our," and "we" refer to the combined company and its subsidiaries subsequent to January 31, 2000. All references to "STG" refer to operations of STG prior to its merger with Wit Capital Group, Inc.

Current Market Environment

        As a research driven technology-focused securities firm, our business and operations are affected by the U.S. and global economic environment and financial market conditions. The performance of the equity capital markets, and in particular the market for technology companies, significantly influences the strength of our business operations. We continue to operate under unfavorable market conditions that prevailed throughout 2002 and extended into 2003 as a result of uncertainty regarding the extent of the global economic slowdown and weakness in the technology sector. Additionally, during 2002, confidence in the markets was affected by concerns surrounding the financial reporting and accounting practices of certain public companies. Our institutional brokerage operations may be negatively affected by overall market volatility, and more specifically, by periods of declining prices or trading volumes in technology stocks. Market uncertainty continues and it is not clear that the equity markets will become active again for initial public offerings on terms acceptable to prospective technology issuers and when or whether we will experience a related increase in revenue from public investment banking activity. We continue to advise on private equity financings as well as merger and acquisition activity but we continue to experience a slowdown in these areas.

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Effects of inflation

        Because the Company's assets are, to a large extent, liquid in nature, they are not significantly affected by inflation. However, the rate of inflation affects the Company's expenses, such as employee compensation, office space leasing costs and communications charges, which may not be readily recoverable in the price of services offered by the Company. To the extent inflation results in rising interest rates or has other adverse effects upon the securities markets, it may adversely affect the Company's financial position and results of operations in certain businesses.

Results of Operations for the Three Months Ended March 31, 2003 as Compared to the Three Months Ended March 31, 2002

Revenues

        Total revenues for the three months ended March 31, 2003 decreased 18.7% to $23.6 million from $29.0 million for the three months ended March 31, 2002. The decrease was primarily attributable to decreases in brokerage revenue and investment-banking revenue, partially offset by a slight increase in interest and investment income and a decrease in loss from investments.

        Brokerage revenue for the three months ended March 31, 2003 was $20.0 million, compared to $25.2 million for the three months ended March 31, 2002, representing a decrease of 20.7%. The decrease was the result of decreased market activity resulting from weakness in the equity markets. The move to decimal trading in the Nasdaq Stock Market, which began in April 2001, resulted in narrowed bid-ask spreads and smaller price increments and, as a result, an overall decrease in trading revenue earned from our market making operations. To compensate for the narrowing of bid ask spreads, in April 2001, we began charging commissions on certain Nasdaq trades. The increased willingness of our clients to pay commissions for Nasdaq trades has helped stabilize our brokerage revenue. However, the level of commissions is a matter of negotiation and is subject to downward pressure.

        Investment banking revenue for the three months ended March 31, 2003 was $1.7 million, compared to $4.0 million for the three months ended March 31, 2002, representing a decrease of 57.8%. Investment banking revenue is primarily derived from the public offering of equity securities, mergers and acquisitions, strategic advisory services and private equity offerings. The decrease in investment banking revenue in 2003 as compared to 2002 was attributable to unfavorable issuing conditions for technology companies, which includes lower market valuations and general market and economic uncertainty. So long as the stability of the public equity markets remains uncertain and mergers and acquisitions activity remains slow, we do not expect that investment banking revenue will increase significantly and could decrease if the environment for capital markets and merger and acquisitions does not improve.

        Interest and investment income for the three months ended March 31, 2003 was $1.2 million, compared to $0.9 million for the three months ended March 31, 2002, representing an increase of 32.7%. We earn interest income from the investment of cash balances raised through financing activities until the funds are used in our business. During the first three months of 2003 and 2002, our average monthly cash balance (includes other short term investments) was $130.0 million and $154.1 million, respectively. Our interest and investment income increased in the first quarter of 2003 compared to the same period in 2002 as a result of interest earned on the repayment of a note receivable from a former officer, offset by decreased interest income earned on our cash balance.

        Asset management fees for the three months ended March 31, 2003 were $1.43 million compared to $1.40 million for the three months ended March 31, 2002, representing an increase of 2.4%. This revenue is calculated as a percentage of capital commitments of the funds under our management. Asset management fees earned in the first three months of 2003 and 2002 were relatively consistent as there have been no significant changes in the capital commitments under each fund.

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        Loss on investments for the three months ended March 31, 2003 was $0.7 million, compared to a loss of $2.5 million for the three months ended March 31, 2002, representing a decrease of 70.8%. The decrease in this loss primarily consisted of lesser decreases in the fair value of private equity investments. As of March 31, 2003, we held approximately $15.9 million in private equity investments and in investment funds in which the underlying investments are in privately held companies. We carry our investments at fair value, which requires management to make estimates based on available information, which do not necessarily represent the amounts that might ultimately be realized, since such amounts depend on future circumstances and cannot be determined until the investments are actually liquidated. Actual results could differ from those estimates and the differences could be material. We may recognize additional future losses related to our investment portfolio based on specific circumstances surrounding an individual investment or if market conditions decline further in certain sectors.

Expenses

        Total expenses for the three months ended March 31, 2003 were $27.0 million, compared to $62.0 million for the three months ended March 31, 2002. This represents a 56.4% decrease that was attributable to decreases in all expense categories, primarily compensation and benefits expense, loss on consolidation of office space and the charge for discontinuance of European operations and to a lesser extent, communications and technology expense, the charge for impairment of intangible asset and brokerage and clearance expense.

        Compensation and benefits expense for the three months ended March 31, 2003 was $15.4 million, compared to $27.2 million for the three months ended March 31, 2002, representing a decrease of 43.4%. Compensation and benefits expense consists of salaries, bonuses, amortization of restricted stock awards and other benefits paid or provided to the Company's employees. The decrease in compensation and benefits expense from the first quarter of 2003 compared to 2002 primarily related to lower incentive compensation accrued due to the expiration of certain guaranteed contracts as well as lower revenues and a decrease in severance and other charges recorded in the first three months of 2002 related to the decrease in personnel from 305 as of December 31, 2001 to 240 as of March 31, 2002. The decrease in our headcount during the first three months of 2002 resulted primarily from staff reductions due to market conditions and the consolidation of our New York and Stamford offices into one office location in Old Greenwich, Connecticut as well as the downsizing of our San Francisco office and the closing of our European office. Headcount as of March 31, 2003 was 224.

        Brokerage and clearance expense for the three months ended March 31, 2003 was $3.3 million, compared to $4.3 million for the three months ended March 31, 2002, representing a decrease of 24.2%. This expense primarily consists of fees paid to independent floor brokers on the New York Stock Exchange for the execution of institutional customer agency trades, as well as amounts paid to our clearing broker for processing and clearing customers' trades. The decrease in brokerage and clearance expense for the quarter ended March 31, 2003 compared to March 31, 2002 resulted from decreased brokerage revenue and lower clearing fees achieved through negotiations with our clearing broker. We expect our brokerage and clearance expense to fluctuate to the extent we experience an increase or decrease in related commission revenue.

        Amortization of intangible assets and goodwill decreased to $1.0 million for the three months ended March 31, 2003 from $1.5 million for the three months ended March 31, 2002, representing a decrease of 31.5%. The decrease was attributable to the amortization expense that had been recorded on intangible assets related to investment advisory and non-compete agreements during the three months ended March 31, 2002. These intangible assets were written off by the Company as of March 31, 2002 and in the fourth quarter of 2002 as a result of our annual evaluation of our goodwill and intangible assets in accordance with the provisions of SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.

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        For the three month period ended March 31, 2003, we recorded no charge for impairment of intangible and other assets compared to a charge of $1.1 million for the three months ended March 31, 2002. Under the provisions of SFAS No. 144, an impairment loss is recognized when the estimate of undiscounted future cash flows generated by an asset is less than its carrying amount. Measurement of the impairment loss is based on the present value of the expected future cash flows. The charge recorded in 2002 resulted from the write-off of the carrying value of the investment advisory intangible asset acquired in the merger with STG. The fund STG formerly managed, from which it earned incentive royalties under an agreement with the manager, ceased operations in the first quarter of 2002.

        Communications and technology expense for the three months ended March 31, 2003 was $1.8 million, compared to $4.2 million for the three months ended March 31, 2002, representing a decrease of 56.1%. Communications and technology expense includes costs related to market data services, transaction processing, telephone and other communication charges as well as costs related to our technology infrastructure. Comparing the three months ended March 31, 2002 to 2003, the decrease in these expenses resulted from the consolidation of various market data service contracts as part of an ongoing cost reduction effort, a decrease in communication expense resulting from the decrease in headcount, and the absence in 2003 of a $1.2 million charge during the first three months of 2002 to terminate a contract.

        Marketing and business development expense for the three months ended March 31, 2003 was $1.0 million, compared to $1.8 million for the three months ended March 31, 2002, representing a decrease of 47.1%. Marketing and business development expense consists primarily of travel, entertainment and costs associated with hosting our technology-focused conferences. The decrease from 2002 to 2003 was attributable primarily to decreased advertising costs and a decrease in travel and entertainment expenses resulting from the market slowdown. In the future, we would expect these expenses to fluctuate to the extent we modify our marketing efforts in response to the changing business environment and market conditions.

        Occupancy expense for the three months ended March 31, 2003 was $1.6 million, compared to $2.2 million for the three months ended March 31, 2002, representing a decrease of 28.1%. Occupancy expense includes costs related to leasing office space in Old Greenwich, San Francisco and Boston. The decrease from 2002 to 2003 was attributable to the reduction in headcount, the steps we took to consolidate our east and west coast operations, as well as the discontinuance of our European operations in 2002.

        Depreciation and amortization expense for the three months ended March 31, 2003 was $1.1 million, compared to $2.0 million for the three months ended March 31, 2002, representing a decrease of 43.6%. Depreciation and amortization consists primarily of depreciation and amortization of furniture, equipment, leasehold improvements and computer software. The decrease in depreciation and amortization expense was primarily the result of the write-off of leasehold improvements related to the consolidation of office space in the first quarter of 2002 and the completion of depreciation of assets acquired in the merger with E*OFFERING in the first quarter of 2002.

        Professional services expense for the three months ended March 31, 2003 was $1.1 million, compared to $1.6 million for the three months ended March 31, 2002, a decrease of 30.1%. Professional services expense includes legal, consulting, accounting, recruiting fees and costs related to our strategic relationships with the Gartner Group and Giga Group, which allow us access to their products and services. The decrease from 2002 to 2003 was primarily attributable to reductions in Gartner Inc. and Giga Information Group fees as well as a decrease in recruiting fees.

        Loss from consolidation of office space was $8.5 million for the three months ended March 31, 2002. This loss consisted primarily of adjustments to a reserve established in 2001 related to our lease commitment for an unused portion of our office space in San Francisco, California. In March 2002, we decided to further consolidate our office space in San Francisco as a result of the reduction in

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headcount, which we believed would increase the likelihood of sublease for the unoccupied portion. Accordingly, we recorded an additional loss reserve of $7.8 million consisting of our lease commitment for the estimated time frame for sublease and the market loss on the additional unused office space over the life of the lease. In addition, we recorded a reserve of $0.7 million that related to the lease for unoccupied office space in Stamford, CT, which expired in March 2003.

        The discontinuance of our European operations in the first quarter of 2002 resulted in a $6.3 million charge for severance and other costs associated with closing STGE's operations, including a $2.8 million loss on foreign exchange translation, which had been reported as a separate component of stockholders' equity.

        Other expenses for the three months ended March 31, 2003 were $0.7 million, compared to $1.3 million for the three months ended March 31, 2002, representing a decrease of 46.2%. Other expenses include costs for office supplies, insurance, subscriptions, registrations, charitable contributions and other general administrative expenses. The decrease from 2002 to 2003 was attributable primarily to an ongoing expense reduction effort and the elimination of a joint venture for which costs were incurred in 2002.

Other

        Minority interest in net loss of subsidiary was a net gain of $8.1 million for the three months ended March 31, 2002. The discontinuance of our European operations in the first quarter of 2002 generated an $8.1 million reduction of minority interest in STGE. All charges related to the discontinuance of the European operations are discussed above.

        For the three months ended March 31, 2003 and 2002, we recorded a net income tax benefit of $0.0 million and $5.7 million, respectively. We record a provision or benefit for income taxes based on our estimated taxable income and periodically assess the need for valuation allowances based on our estimation of future taxable earnings. Our effective tax rate differs from the Federal statutory rate as a result of state and local income taxes and the recording of a valuation allowance. For the three months ended March 31, 2003, we recorded an income tax benefit of $0.6 million and an offsetting valuation allowance of $0.6 million to augment our existing valuation allowance against the net balance of our deferred tax assets, which resulted primarily from net operating loss carryforwards. The valuation allowance at March 31, 2003 was $39.8 million. The valuation allowance was calculated in accordance with the provisions of SFAS No. 109, Accounting for Income Taxes, which places primary importance on our historical results of operations. Although management believes our results in prior years were significantly affected by restructuring and other charges, our historical losses and losses incurred in the current fiscal year represented negative evidence sufficient to require a full valuation allowance under the provisions of SFAS 109. We believe that our future results of operations will generate taxable income sufficient to realize the net deferred tax assets, but our belief does not satisfy the requirement for objective evidence under SFAS No. 109 to support the carrying value of the asset. If we are able to realize part or all the deferred tax assets in future periods, we will reduce our provision for income taxes with a release of the valuation allowance in an amount which is more likely than not expected to be realized.

Liquidity and Capital Resources

        As of March 31, 2003, we had $136.9 million in cash, cash equivalents, short-term investments and unrestricted cash held at our clearing broker. We may use cash to repurchase stock from time to time depending on the market for our common stock and other factors; however, we do not currently anticipate any capital expenditures or investments in 2003 that would bring our cash balance significantly below its current level.

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        Net cash used in operating activities was $20.9 million for the three months ended March 31, 2003, compared to $42.4 million during the same period in the preceding year. Cash used in operating activities for the three months ended March 31, 2003 was primarily from a net loss of $3.4 million, offset by non-cash adjustments of $5.3 million, a net increase in operating assets of $0.4 million and a decrease in operating liabilities of $22.4 million. Cash used in operating activities for the three months ended March 31, 2002 was primarily from a net loss of $19.2 million, offset by non-cash adjustments of $9.8 million, a net increase in operating assets of $12.4 million, and a decrease in operating liabilities of $20.5 million.

        Net cash used in investing activities was $0.0 million for the three months ended March 31, 2003, compared to $0.8 million for the three months ended March 31, 2002. Cash used in investing activities for the three months ended March 31, 2002 was primarily the result of purchases of furniture, equipment and leasehold improvements.

        Net cash provided by financing activities was $0.7 million for the three months ended March 31, 2003, compared to $2.2 million for the three months ended March 31, 2002. Cash provided by financing activities for the three months ended March 31, 2003 resulted from the repayment of a note receivable from stockholder of $2.8 million and proceeds from the issuance of common stock offset by repurchases of common stock of $2.1 million. Cash provided by financing activities for the three months ended March 31, 2002 resulted primarily from proceeds received from the issuance of common stock for exercise of options.

New Accounting Pronouncements

        In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated with Exit or Disposal Activities ("SFAS 146"). This statement addresses financial accounting and reporting for costs associated with exit or disposal activities. The provisions of SFAS 146 are effective for exit or disposal activities that are initiated after December 31, 2002, with early application encouraged. We do not believe that the implementation of SFAS 146 will have a material impact on our consolidated financial statements.

        In November 2002, the FASB issued Interpretation No. 45, Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others ("FIN 45"). Guarantees meeting the characteristics described in the Interpretation are required to be initially recorded at fair value, which is different from the general current practice of recording a liability only when a loss is probable and reasonably estimable, as those terms are defined in FASB Statement No. 5, Accounting for Contingencies. FIN 45 also requires a guarantor to make significant new disclosures for virtually all guarantees even when the likelihood of the guarantor's having to make payments under the guarantee is remote. FIN 45's disclosure requirements are effective for financial statements of interim or annual periods ending after December 15, 2002. The Interpretation's initial recognition and initial measurement provisions are applicable on a prospective basis to guarantees issued or modified after December 31, 2002, irrespective of the guarantor's fiscal year-end. We do not believe that the implementation of FIN 45 will have a material impact on our consolidated financial statements.

        In January 2003, the FASB issued Interpretation No. 46, Consolidation of Variable Interest Entities ("FIN 46"). The objective of FIN 46 is to improve financial reporting by companies involved with variable interest entities. A variable interest entity is a corporation, partnership, trust, or any other legal structure used for business purposes that either (a) does not have equity investors with voting rights or (b) has equity investors that do not provide sufficient financial resources for the entity to support its activities. FIN 46 requires a variable interest entity to be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity's activities or entitled to receive a majority of the entity's residual returns or both. FIN 46 also requires disclosures about variable interest entities that the company is not required to consolidate but in which it has a significant variable interest. The consolidation requirements of Interpretation 46 apply immediately to variable

21

interest entities created after January 31, 2003. The consolidation requirements apply to older entities in the first fiscal year or interim period beginning after June 15, 2003. Certain of the disclosure requirements apply in all financial statements issued after January 31, 2003, regardless of when the variable interest entity was established. As of March 31, 2003, we have not yet determined what effect, if any, FIN 46 will have on our consolidated financial statements.

Item 3—Quantitative and Qualitative Disclosures about Market Risk

        There has been no material change from the Item 305 information included in our Annual Report on Form 10-K for the year ended December 31, 2002.

Item 4—Controls and Procedures

(a)

Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer and Chief Financial and Administrative Officer have evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934 as amended (the "Exchange Act") as of a date 90 days prior to the filing of this quarterly report (the "Evaluation Date"). Based on such evaluation, those officers have concluded that, as of the Evaluation Date, our disclosure controls and procedures are reasonably effective in alerting management of the Company on a timely basis to material information relating to our Company required to be included in our reports filed or submitted under the Exchange Act.

(b)

Changes in Internal Controls

Since the Evaluation Date, there have not been any significant changes in our internal controls or in other factors that could significantly affect such controls.

PART II

Item 1—Legal Proceedings

        Certain claims and legal proceedings are described in the Registrant's Annual Report on Form 10-K for the year ended December 31, 2002. We are currently subject to claims and legal proceedings arising in the normal course of our business. We do not believe that the resolution of such legal proceedings should have a material adverse effect on us.

Item 2—Changes in Securities and Use of Proceeds

        During the quarter ended March 31, 2003, we repurchased 1.5 million shares at an average price of $1.25 pursuant to our stock repurchase program. On April 17, 2003 our board of directors authorized an increase in our buyback program from 4.6 million shares to 10.0 million shares. As of May 8, 2003, we have repurchased 2.7 million shares at an average price of $1.39.

Item 3—Default upon Senior Securities

        None

Item 4—Submission of Matters to a Vote of Security Holders

        None

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Item 5—Other Information

Forward-Looking Statements

        Certain statements in this Form 10-Q that are not historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements preceded by, followed by, or that include the words "expect," "expected," "will," "may," "anticipate," "believe," and "should" involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or those of the industry in which we operate, to be materially different from any expected future results, performance or achievements expressed or implied in these forward-looking statements.

        Additional information regarding these and other important factors that could cause actual results to differ from those in our forward-looking statements is contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2002. We hereby incorporate by reference those risk factors into this Form 10-Q. Other additional information regarding important factors that cause results to differ from those in our forward looking statements are contained in our periodic filings with the Securities & Exchange Commission.

Item 6—Exhibits and Reports on Form 8-K

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SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized, in Old Greenwich, Connecticut on this 15th day of May 2003.

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CERTIFICATION

I, Mark F. Loehr, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of SoundView Technology Group, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.

Based on my knowledge, the financial statements and other financial information included in this quarterly report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.

The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a)

designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)

evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and

c)

presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.

The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a)

all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and

6.

The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

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CERTIFICATION

I, Gerard P. Maus, certify that:

1.

I have reviewed this quarterly report on Form 10-K of SoundView Technology Group, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.

Based on my knowledge, the financial statements and other financial information included in this quarterly report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.

The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a)

designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)

evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and

c)

presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.

The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a)

all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and

6.

The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

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QuickLinks

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3—Quantitative and Qualitative Disclosures about Market Risk
Item 4—Controls and Procedures
PART II
Item 1—Legal Proceedings
Item 2—Changes in Securities and Use of Proceeds
Item 3—Default upon Senior Securities
Item 4—Submission of Matters to a Vote of Security Holders
Item 5—Other Information
Item 6—Exhibits and Reports on Form 8-K