A Lock on Growth for Secure Computing: Fool by Numbers

On Wednesday, Rule Breakers selection Secure Computing (Nasdaq: SCUR  ) released earnings for the fourth quarter ended Dec. 31.

  • On a non-GAAP basis, which includes the benefits of the CipherTrust acquisition and excludes stock-based compensation and amortization of intangibles, Secure Computing booked $0.07 a share on $63.2 million in revenue, easily besting expectations.
  • Billings equaled $77.5 million, well above internal guidance of $66 million to $69 million. Consequently, total deferred revenue rose to $122 million.
  • For the seasonally light first quarter, management says to expect $59 million to $61 million in non-GAAP sales, $0.03 to $0.04 in non-GAAP net income, and $68 million to $70 million in billings.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$51,586

$30,234

70.6%

Net Profit

($27,423)

$6,574

N/A

EPS

($0.44)

$0.17

N/A

Diluted Shares

64,594

38,728

66.8%

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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

69.92%

75.20%

(5.28)

Operating Margin

(18.39%)

20.11%

(38.50)

Net Margin

(53.16%)

21.74%

(74.90)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$8,706

$81,179

(89.3%)

Accounts Rec.

$63,637

$29,795

113.6%

Inventory

$4,078

$2,174

87.6%

Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$12,442

$2,997

315.1%

Long-Term Debt

$85,023

$0

N/A

Learn the ways of the balance sheet.

Cash Flow Checkup

Q4 2006

Q4 2005

Change

Cash From Ops.

$36,123

$27,554

31.1%

Capital Expenditures

$11,841

$2,496

374.4%

Free Cash Flow

$24,282

$25,058

(3.1%)

Find out why Fools always follow the money.

Related Companies:

Related Foolishness:

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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 Tim Beyers, ranked 955 out of more than 21,300 in Motley Fool CAPS, owns shares of Secure Computing. Get the skinny on all the stocks he owns by checking Tim's Fool profile. McAfee and Websense are former Stock Advisor selections. Symantec is an Inside Value pick. The Motley Fool's disclosure policy always adds up.


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