Cambridge Display Dims: Fool by Numbers

On Nov. 10, Cambridge Display Technology (Nasdaq: OLED  ) released third-quarter earnings for the period ended Sept. 30.

• The designer of organic light-emitting diodes saw revenue decrease by 85.9%. The year-ago comparison included the sale of five development contracts.
  
  
• Accounts receivable spiked an uncomfortable 115%.
  
  
• The stock price dipped more than 15% after the earnings release.
  
  
• Our Motley Fool CAPS players rate the stock two stars out of five. Add your own thoughts.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q3 2006	Q3 2005	Change
Sales	$925	$6,565	(85.9%)
Net Profit	($9,637)	($8,591)	N/A
EPS	($0.45)	($0.44)	N/A
Diluted Shares	21,483	19,485	10.3%

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

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	44.0%	44.0%	(0.0)
Operating Margin	(900.1%)	(113.2%)	(786.9)
Net Margin	(1,041.8%)	(130.9%)	(911.0)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$15,583	$6,285	147.9%
Accounts Rec.	$4,656	$2,164	115.2%
Inventory	$253	--	--

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	$5,858	$6,140	(4.6%)
Long-Term Debt	--	--	--

Learn the ways of the balance sheet.

Cash Flow Highlights

	YTD 2006	YTD 2005	Change
Cash From Ops.	($9,684)	($15,496)	N/A
Capital Expenditures	$1,215	$2,905	(58.2%)
Free Cash Flow	($10,899)	($18,401)	N/A

Find out why Fools always follow the money.

Related Companies:

• Universal Display (Nasdaq: PANL  )
• ANTS Software
• Odyssey Marine Exploration (Nasdaq: OMR  )
• National Research (Nasdaq: NRCI  )

Related Foolishness:

• Cambridge Display Lighting the Way
• Foolish Forecast: Cambridge Displays Little

Universal Display is a Motley Fool Rule Breakers recommendation. See what other disruptive companies and emerging technologies make up the picks at Rule Breakers; take the newsletter service for afree, 30-day spin.

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.