On March 28, computer subsystem designer SMART Modular Technologies
- There's that slight outperformance of management's earnings guidance, just as expected. You sly, underpromising dogs, you!
- The cash balance may be shrinking, but not as fast as the long-term debt. Management seems to have decided on a less leveraged financial model going forward.
- SMART is still trailing the top-to-bottom margins of other memory specialists like Micron
(NYSE:MU) and SanDisk(NASDAQ:SNDK) , but margins are headed in the right direction. The exception is the gross take, where lower average selling prices are taking their toll.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$239.1 |
$163.7 |
46.1% |
|
Net Profit |
$14.0 |
$0.8 |
1684.2% |
|
EPS |
$0.22 |
$0.01 |
2100% |
|
Diluted Shares |
63.8 |
56.3 |
13.3% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
17.2% |
18.2% |
(1.0) |
|
Operating Margin |
8.4% |
7.9% |
0.4 |
|
Net Margin |
5.8% |
0.5% |
5.4 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$107.4 |
$137.2 |
(21.7%) |
|
Accounts Rec. |
$218.8 |
$158.4 |
38.2% |
|
Inventory |
$87.0 |
$55.2 |
57.5% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$182.8 |
$131.9 |
38.6% |
|
Long-Term Debt |
$81.3 |
$125.0 |
(35%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
The company didn't see fit to provide this vital information sheet today. Free cash flow is a Fool's best friend.
Related Foolishness:
SMART isn't an official Motley Fool Rule Breakers selection, but it behaves like one in many ways. Grab a free 30-day trial pass to our ultra-growth investment service, and put the pieces together for yourself.
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.
At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.
