Harris & Harris' Heftier Holdings: Fool by Numbers

On March 15, venture capital investment firm Harris & Harris (Nasdaq: TINY  ) released fourth-quarter earnings for the period ended Dec. 31.

  • The Motley Fool Rule Breakers recommendation recorded six new investments in "tiny technology" (mostly nanotech) companies in 2006, with 14 additional follow-on investment rounds.
  • The firm now has a stake in 31 different companies.
  • Because Harris & Harris' purpose is "to achieve long-term capital appreciation, rather than current income, by making venture capital investments in early-stage companies" some of the traditional numbers below aren't a lot of help in describing the state of the company. The "Net asset value per outstanding share" row is a better measure.
  • The stock carries a solid four-star rating in Motley Fool CAPS.

(Figures in thousands, except per-share data.)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$719.0

$801.7

(10.3%)

Net Profit

($6,248.0)

($5,389.0)

N/A

EPS

($0.30)

($0.29)

N/A

Diluted Shares

20,759.5

18,471.8

12.4%

Net asset value per outstanding share

$5.42

$5.68

(4.6%)



Get back to basics with the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Operating Margin

(439.8%)

230.9%

(670.8)

Net Margin

(869.0%)

(672.2%)

(196.8)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$2,071.8

$1,213.3

70.8%

Accounts Rec.

$1,445.3

$323.6

346.6%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$4,115.3

$3,174.2

29.6%



The balance sheet reflects the company's health.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

($14,955.3)

($2,914.3)

N/A

Capital Expenditures

$15.1

$45.7

(67.0%)

Free Cash Flow

($14,970.4)

($2,960.0)

N/A



Free cash flow is a Fool's best friend.

Related Foolishness:

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.


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