Measuring the Years by Sun Dial: Fool by Numbers

On July 30, computing powerhouse Sun Microsystems (Nasdaq: SUNW ) released earnings for the 2007 fiscal year ending June 30.

It looks like the turnaround plans are working for Sun. This is the first GAAP-profitable fiscal year since 2001.
Sales growth has slowed down, but profits are up -- a combination that often shows a company that isn't interested in chasing sales at any price when it can pursue higher-quality revenue instead.
Expect that share dilution to turn around soon. There's a freshly board-approved $3 billion authorization for share repurchases on the table.

(Figures in millions, except per-share data)

Income Statement Highlights

	FY 2007	FY 2006	Change
Sales	$13,873	$13,068	6.2%
Net Profit	$473	($864)	N/A
EPS	$0.13	($0.25)	N/A
Diluted Shares	3,606	3,437	4.9%

Get back to basics with the income statement.

Margin Checkup

FY 2007	FY 2006	Change*
45.2%	43.1%	2.1
2.2%	(6.7%)	8.9
3.4%	(6.6%)	10.0

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	FY 2007	FY 2006	Change
Cash + ST Invest.	$4,582	$4,065	12.7%
Accounts Rec.	$2,964	$2,702	9.7%
Inventory	$524	$540	(3%)

Liabilities	FY 2007	FY 2006	Change
Accounts Payable	$1,428	$1,446	(1.2%)
Long-Term Debt	$1,265	$1,078	17.3%

The balance sheet reflects the company's health.

Cash Flow Highlights

	FY 2007	FY 2006	Change
Cash From Ops.	$958	$640	49.7%
Capital Expenditures	$488	$388	25.8%
Free Cash Flow	$470	$252	86.5%
Owner Earnings	$912	$67	1,261.2%

Free cash flow is a Fool's best friend.

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.

At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.

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