PDL Biopharma's Fair Q4: Fool by Numbers

On Feb. 21, PDL BioPharma (Nasdaq: PDLI) released fourth-quarter earnings for the period ended Dec. 31.

• Revenues rose 29%, backed by a 31% growth in royalties and a 23% growth in sales of products.
• Net loss has widened, primarily due to asset impairment charges to the tune of $72.1 million related to the company's Retavase product.
• Cash flow generated from operating activities for fiscal 2006 was $78.8 million, compared with $31.6 million for the full year 2005.
• The company anticipates total revenues for fiscal 2007 to be around $450 million-$500 million and non-GAAP EPS of $0.38 to $0.54.
• PDL Biopharma is highly regarded in Motley Fool CAPS, sporting a four-star rating.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$107,842	$83,653	28.9%
Net Profit	($89,708)	($34,096)	N/A
EPS	($0.78)	($0.31)	N/A
Diluted Shares	114,403	111,571	2.5%

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

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	77.4%	80.0%	(2.6)
Operating Margin	(84.4%)	(42.0%)	(42.4)
Net Margin	(83.2%)	(40.8%)	(42.4)

*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.	$426,285	$333,922	27.7%
Accounts Rec.	No Data	No Data	No Data
Inventory	No Data	No Data	No Data

Data for liabilities not available.

Learn the ways of the balance sheet.

Cash Flow Highlights

	2006	2005	Change
Cash From Ops.	$78,770	$31,550	149.7%
Capital Expenditures	No Data	No Data	N/A
Free Cash Flow	No Data	No Data	N/A

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Related Companies:

• Genentech (NYSE: DNA)
• Medicines Co. (Nasdaq: MDCO)
• Medarex (Nasdaq: MEDX)
• Elan (NYSE: ELN)
• Millennium Pharmaceuticals (Nasdaq: MLNM)

Related Foolishness:

• Roche Says Goodbye to PDL
• Mixed Feelings About PDL
• A Biotech Frankenstock

PDL Biopharma and Millennium Pharmaceuticals are Rule Breakers recommendations. Keep tabs on big events in tiny technology with a free 30-day trial subscription to David Gardner's Motley Fool Rule Breakers.

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.