On Wednesday, Rule Breakers selection Secure Computing (NASDAQ:SCUR) released earnings for the fiscal year 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 $0.39 a share on $193.2 million in revenue, easily besting expectations.
  • Fools rating the stock in our Motley Fool CAPS investor intelligence database give Secure Computing four out of five stars.

(Figures in thousands, except per-share data)

Income Statement Highlights

FY 2006

FY 2005

Change

Sales

$176,697

$109,157

61.9%

Net Profit

($27,398)

$21,374

N/A

EPS

($0.76)

$0.57

N/A

Diluted Shares

57,010

37,709

51.2%



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

Margin Checkup

FY 2006

FY 2005

Change*

Gross Margin

72.18%

79.80%

(7.62)

Operating Margin

(10.06%)

18.64%

(28.70)

Net Margin

(15.51%)

19.58%

(35.09)

*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.

$8,706

$81,179

(89.3%)

Accounts Rec.

$63,637

$29,795

113.6%

Inventory

$4,078

$2,174

87.6%



Liabilities

FY 2006

FY 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

FY 2006

FY 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:

  • Check Point Software (NASDAQ:CHKP)
  • Cisco (NASDAQ:CSCO)
  • EMC (NYSE:EMC)
  • McAfee (NYSE:MFE)
  • Symantec (NASDAQ:SYMC)
  • Websense (NASDAQ:WBSN)

Related Foolishness:

Secure Computing is a Motley Fool Rule Breakers pick. David Gardner and his team of analysts have unearthed six stocks that have more than doubled in the first two years of this market-beating service. Want to find out what they are? Click here to test-drive Rule Breakers for 30 days. There's no obligation to subscribe.

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 21,000 in Motley Fool CAPS, didn't own shares in any of the companies mentioned in this article at the time of publication. Get the skinny on all the stocks he owns by checking Tim's Fool profile. Symantec and McAfee are Inside Value picks.The Motley Fool's disclosure policy always adds up.