Editor's note: An earlier version of this story indicated Novell spent $400,000 on stock repurchases. The number should have been $4 million. We regret the error.
On Dec. 5, software company Novell
- Much of this report should be taken with a grain of salt, pending the completion of an internal review of stock options-granting practices. Novell needs to restate results several years back, and the impact on current results and balances isn't known now.
- Linux platform revenues increased 32% year over year, while NetWare-related sales decreased 25%. I've said it before and I'll say it again: It's not too late to sell that aging product line to someone better equipped to support outdated technology, like IBM
(NYSE:IBM) , Electronic Data Systems(NYSE:EDS) , or even Robert Half International(NYSE:RHI) , and focus the company's assets on success in the booming Linux market.
(Figures in millions, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$244.9 |
$287.6 |
(14.9%) |
Net Profit |
$22.4 |
-$5.0 |
N/A |
EPS |
$0.06 |
($0.01) |
N/A |
Diluted Shares |
395.5 |
382.3 |
3.4% |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
68.57% |
69.04% |
(0.47) |
Operating Margin |
1.00% |
(4.32%) |
5.32 |
Net Margin |
9.13% |
(1.72%) |
10.85 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$1,467.3 |
$1,654.9 |
(11.3%) |
Accounts Rec. |
$234.0 |
$293.6 |
(20.3%) |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$44.4 |
$45.4 |
(2.3%) |
Long-Term Debt |
$600.0 |
$600.0 |
0.0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$62.3 |
$58.3 |
6.9% |
Capital Expenditures |
$7.1 |
$10.6 |
(32.8%) |
Free Cash Flow |
$55.1 |
$47.7 |
15.7% |
$44.0 |
$48.6 |
(9.5%) |
Find out why Fools always follow the money.
Cash Management Checkup
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Days in Receivables |
86.4 |
85.9 |
0.5 |
Days Payables Outstanding |
49.5 |
51.2 |
(1.7) |
Read up on cash conversion metrics.
Related Companies:
-
Red Hat
(NASDAQ:RHAT) -
Oracle
(NASDAQ:ORCL) -
Microsoft
(NASDAQ:MSFT)
Related Foolishness:
Microsoft is an Inside Value recommendation. Get afree 30-day trialtoday and see what other giants are on sale.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned, though Robert Half once failed to find him a job. It all worked out, guys -- no hard feelings. Fool rules are here.