On Thursday, Motley Fool Rule Breakers pick Secure Computing
- On a Non-GAAP basis, which includes acquired deferred revenue and excludes intangibles, stock-based compensation, and other non-cash charges, Secure Computing earned $0.07 a share from $63.7 million in revenue.
- More than 100 deals worth at least $100,000 were booked during the quarter. Seven deals worth at least $1 million were closed. And that's with increased competitive pressure from the likes of Cisco
(NASDAQ:CSCO) , Websense(NASDAQ:WBSN) , and Google(NASDAQ:GOOG) . - Billings, a measure of Secure's success in multimonth or multiyear service contracts, were up 75% over last year's Q2. (Though a good portion of the gain was a result of the August 2006 acquisition of CipherTrust.)
- So far, Motley Fool CAPS investors like what they see. They give the stock five out of five stars. What's your take? Click here and let us know.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$57,648 |
$38,746 |
48.8% |
|
Net Profit |
($10,948) |
$6,659 |
N/A |
|
EPS |
($0.18) |
$0.11 |
N/A |
|
Diluted Shares |
65,756 |
60,994 |
7.8% |
Get back to basics with a look at the income statement.
Margin Checkup|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
70.42% |
74.39% |
(3.97) |
|
Operating Margin |
(11.48%) |
(6.99%) |
(4.49) |
|
Net Margin |
(18.99%) |
17.19% |
(36.18) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$9,253 |
$102,561 |
(91.0%) |
|
Accounts Rec. |
$55,235 |
$30,527 |
80.9% |
|
Inventory |
$4,567 |
$3,810 |
19.9% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$11,586 |
$4,580 |
153.0% |
|
Long-Term Debt |
$63,275 |
$0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$24,659 |
$19,568 |
26.0% |
|
Capital Expenditures |
$6,059 |
$6,355 |
(4.7%) |
|
Free Cash Flow |
$18,600 |
$13,213 |
40.8% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Panic sellers struck last quarter.
- Perhaps they didn't see the numbers?
- Find out what your peers had to say before the call.
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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.
Fool contributor Tim Beyers owned shares of Secure Computing at the time of publication. Find Tim's portfolio here and his latest blog commentary here. The Motley Fool's disclosure policy always adds up.
