On Tuesday, March 20, creative software firm Adobe Systems
- Total sales fell slightly, coming in at the low end of the company's guidance.
- Reported diluted earnings grew 41%, at the high end of the company's guidance. Excluding a number of charges related primarily to the acquisition of Macromedia, non-GAAP results were $0.30 per share, according to the company press release.
- The company is projecting second-quarter sales of $700 million-$740 million, and earnings of $0.23-$0.26 per share. For the year, Adobe is targeting 15% sales growth.
- Adobe carries a four-star rating in the Motley Fool CAPS intelligence database, as does rival Autodesk
(NASDAQ:ADSK) . Oracle(NASDAQ:ORCL) carries a three-star rating, while software giant Microsoft(NASDAQ:MSFT) and Symantec(NASDAQ:SYMC) only carry two-star ratings. Feel free to head to CAPS and tell us what you think about these companies and more.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$655,600 |
$649,407 |
$655,478 |
(0.9%) |
|
Net Profit |
-- |
$143,851 |
$105,072 |
36.9% |
|
EPS |
$0.29 |
$0.24 |
$0.17 |
41.2% |
|
Diluted Shares |
-- |
604,249 |
621,839 |
(2.8%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
88.87% |
88.14% |
0.73 |
|
Operating Margin |
22.53% |
19.83% |
2.70 |
|
Net Margin |
22.15% |
16.03% |
6.12 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,282,400 |
$2,104,605 |
8.4% |
|
Accounts Rec. |
$304,748 |
$281,530 |
8.2% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$46,867 |
$51,218 |
(8.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$270,518 |
$196,561 |
37.6% |
|
Capital Expenditures |
$57,215 |
$16,856 |
239.4% |
|
Free Cash Flow |
$213,303 |
$179,705 |
18.7% |
Cash flow statements help Fools follow the money.
Related Foolishness:
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.
Fool contributor Ryan Fuhrmann is long shares of Microsoft and Symantec -- both Inside Value selections -- but has no financial interest in any other company mentioned. Feel free to email Ryan with feedback or to further discuss any companies mentioned. The Fool has an ironclad disclosure policy.
