On April 26, Openwave Systems
- Revenues decreased 37.1% and earnings turned negative, sending the stock down 9%.
- On the bright side, free cash flow increased by about $17 million.
- The stock, which has lost 60% of its value over the past year, rates a below-average two stars in Motley Fool CAPS.
(Figures in millions, except per-share data.)
Income Statement Highlights|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$71.1 |
$113.0 |
(37.1%) |
|
Net Profit |
($32.5) |
$9.6 |
N/A |
|
EPS |
($0.35) |
$0.10 |
N/A |
|
Diluted Shares |
92.1 |
95.0 |
(3.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
52.2% |
69.5% |
(17.3) |
|
Operating Margin |
(48.8%) |
5.4% |
(54.2) |
|
Net Margin |
(45.8%) |
8.5% |
(54.2) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$325.3 |
$409.1 |
(20.5%) |
|
Accounts Rec. |
$95.1 |
$157.5 |
(39.6%) |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts payable |
$11.9 |
$16.6 |
(28.3%) |
|
Long-Term Debt |
$148.8 |
$148.2 |
0.4% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q3 2007 |
Q3 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$17.4 |
($0.4) |
N/A |
|
Capital Expenditures |
$3.5 |
$2.2 |
59.6% |
|
Free Cash Flow |
$14.0 |
($2.6) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
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