Secure Computing's Secure Quarter: Fool by Numbers

On Wednesday, Motley Fool Rule Breakers pick Secure Computing (Nasdaq: SCUR  ) released Q3 2006 earnings for the period ended Sept. 30, 2006.

  • At first blush, earnings looked awful. And yet the opposite is true. After one-time items and after backing out the effects of the CipherTrust acquisition, which occurred during the quarter, Secure Computing earned $0.10 a share on $42.5 million in sales, both of which beat expectations.
  • What's more, Secure's balance sheet inherited only $89 million in debt. That's an impressive discount from the $115 million management had expected to take on to finance the CipherTrust deal, and suggests high confidence in the firm's ability to produce excellent cash flow.

  • Guidance according to generally accepted accounting principles suggests further losses during Q4, but it's likely the next quarter will also see more one-time charges due to the CipherTrust deal. Keep a closer eye on cash flow, Fool.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005






Net Profit








Diluted Shares




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

Margin Checkup

Q3 2006

Q3 2005


Gross Margin




Operating Margin




Net Margin




*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights


Q3 2006

Q3 2005


Cash + ST Invest.




Accounts Rec.









Q3 2006

Q3 2005


Accounts Payable




Total Debt




Learn the ways of the balance sheet.

Cash Flow Checkup

Q3 2006

Q3 2005


Cash From Ops.




Capital Expenditures




Free Cash Flow




*Trailing 12 month total

Find out why Fools always follow the money.

Related Companies:

Related Foolishness:

Secure Computing is one of dozens in a Rule Breakers portfolio that features five stocks that have more than doubled in price. Want to find out who they are? Click here to get 30 days of free access to the service.

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.

Fool contributor Tim Beyers owns shares of Secure Computing. You can find out which other stocks he owns by checking Tim's Fool profile. Symantec is a Motley Fool Inside Value selection. The Motley Fool's disclosure policy always adds up.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 516963, ~/Articles/ArticleHandler.aspx, 10/26/2016 11:15:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,220.19 50.92 0.28%
S&P 500 2,144.61 1.45 0.07%
NASD 5,272.15 -11.25 -0.21%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/18/2008 4:00 PM
SCUR.DL $5.75 Down +0.00 +0.00%
Secure Computing CAPS Rating: *****
EMC $0.00 Down +0.00 +0.00%
EMC CAPS Rating: ****
MFE.DL $0.00 Down +0.00 +0.00%
McAfee CAPS Rating: **
SYMC $25.14 Up +0.15 +0.60%
Symantec CAPS Rating: ***
WBSN.DL $0.00 Down +0.00 +0.00%
Websense CAPS Rating: No stars