Everyone's Playing Shanda: Fool by Numbers

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On Feb. 12, online gaming purveyor and Motley Fool Rule Breakers selection Shanda Interactive Entertainment (Nasdaq: SNDA) released fourth-quarter earnings for the period ended Dec. 31.

• Online game revenues for the quarter soared by 44% year over year.
• Massive Multiplayer Online Role Playing Game (MMPORG) revenues increased by 64% year over year, coming in at more than 80% of total revenues.
• Shanda is currently a four-star stock in the Motley Fool CAPS stock-rating service. Want to know what all the fuss is about? Just join the service for free today.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$60,268	$44,672	34.9%
Net Profit	$30,775	($66,775)	N/A
EPS	$0.21	($0.47)	N/A
Diluted Shares	145,194.8	142,349.2	2.0%

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

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	62.9%	59.9%	3.0
Operating Margin	33.0%	(7.7%)	40.6
Net Margin	51.1%	(149.5%)	200.5

*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.	$453,886	$372,935	21.7%
Accounts Rec.	$4,058	$10,053	(59.6%)
Inventory	$1,149	$3,529	(67.4%)

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$11,677	$8,103	44.1%
Long-Term Debt	$0	$275,000	(100.0%)

Learn the ways of the balance sheet.

Cash Flow Highlights
No data available. Lame.

Find out why Fools always follow the money.

Related Companies:

• Sina (Nasdaq: SINA)
• CDC (Nasdaq: CHINA)
• Electronic Arts (Nasdaq: ERTS)

Related Foolishness:

• Shanda Shines in the Shade
• A Chinese Internet Play With a Defensive Twist
• Netflix Is a Movie Star

Shanda is a Motley Fool Rule Breakers selection. To see what other great stocks have been picked for subscribers of the market-beating newsletter, take a free 30-day trial today.

Sina and Electronic Arts are Stock Advisor picks.

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.