On Dec. 20, networking equipment maker 3Com (NASDAQ:COMS) released second-quarter earnings for the period ended Dec. 1.

  • The inclusion of H3C, its new wholly owned subsidiary, is the main cause for the 81% rise in revenues.
  • EPS improved marginally, but still couldn't push into positive territory.
  • The stock has a lowly one-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$333.0

$184.3

80.6%

Net Profit

($3.5)

($10.7)

N/A

EPS

($0.01)

($0.03)

N/A

Diluted Shares

393.4

385.4

2.1%



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

45.1%

40.3%

4.8

Operating Margin

(2.8%)

(22.9%)

20.1

Net Margin

(1.1%)

(5.8%)

4.7

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$868.5

$753.9

15.2%

Accounts Rec.

$155.2

$93.0

66.8%

Inventory

$142.7

$31.9

347.5%



Q2 2007

Q2 2006

Change

Accounts Payable

$122.2

$97.5

25.3%

Long-Term Debt *

$2.7

$6.6

(59.6%)

*Includes deferred revenue.

Learn the ways of the balance sheet.

Cash Flow Highlights

Unfortunately, management is still not including a cash flow statement with its earnings release. (Grrr.)

Find out why Fools always follow the money.

Related Companies:

  • Cisco (NASDAQ:CSCO)
  • Juniper Networks (NASDAQ:JNPR)
  • Sycamore Networks (NASDAQ:SCMR)
  • Finisar (NASDAQ:FNSR)
  • Black Box (NASDAQ:BBOX)

Related Foolishness:

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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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.