On Aug. 30, optical-networking specialist JDS Uniphase (NASDAQ:JDSU) released earnings for fiscal 2006, which ended June 30. (And, of course, it released fourth-quarter earnings, too. But that's another story.)

  • If you back out its acquisition of network-testing specialist Acterna from last fall, including the extra sales, general, and administrative costs of supporting a larger staff, revenues would become flat or marginally worse compared with fiscal 2005. The bottom line would improve considerably, though.

  • The high-margin sales that Acterna brought in gave margins a real shot in the arm on top of internal operational efficiency improvements. We might see an honest-to-goodness GAAP-profitable quarter out of JDSU before too long.

  • Does management have other large purchases in mind? The last one turned out to be a good deal, and the company has taken on additional debt despite a balance sheet that already looked healthy.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2006

FY 2005

Change

Sales

$1,200

$1,204

$712

69.1%

Net Profit

--

($151)

($261)

57.9%

EPS

($0.01)

($0.09)

($0.18)

50%

Diluted Shares

1,650

1,445

14.1%



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

Balance Sheet Highlights

FY 2006

FY 2005

Change*

Gross Margin

31.30%

17.64%

13.66

Operating Margin

(20.59%)

(35.07%)

14.48

Net Margin

(12.56%)

(36.69%)

24.13

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

FY 2006

FY 2005

Change

Cash + ST Invest.

$1,239

$1,305

(5.1%)

Accounts Rec.

$232

$102

127.1%

Inventory

$202

$97

107.6%



Liabilities

FY 2006

FY 2005

Change

Accounts Payable

$127

$75

68.6%

Long-Term Debt

$900

$475

89.3%



Learn the ways of the balance sheet.

Cash Flow Highlights

Alas, poor cash flow statement! I knew it, Horatio: A table of infinite jest, of most excellent utility.

Find out why Fools always follow the money.

Related Companies:

  • Agilent (NYSE:A)
  • Cisco (NASDAQ:CSCO)
  • Tektronix (NYSE:TEK)
  • Catapult Communications (NASDAQ:CATT)
  • Lucent (NYSE:LU)
  • Verizon (NYSE:VZ)

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 checkFool.comfor more of our in-depth discussion of what the numbers mean.

Keep tabs on high-tech companies poised for explosive growth with a free 30-day trial to David Gardner'sMotley Fool Rule Breakers.

At the time of publication,Anders Bylundhad positions in none of these companies. Fool rules arehere.