On Aug. 9, Motley Fool Rule Breaker and next-generation display technology expert Universal Display
- Sales and profits can be lumpy for a company as small as Universal Display, and the timing of just a couple of orders changes the picture completely on this close-up, quarterly scale.
- The company is still burning cash, and it resorted to raising $37 million from investors by selling more stock this quarter. Hello, Mr. Dilution!
- Out of the three companies that have the highest hopes for OLED display and lighting technology, Universal Display receives a high four-star honor from our Motley Fool CAPS community. Competitor Cree
(NASDAQ:CREE) also has four, and Cambridge Display(NASDAQ:OLED) carries a middling three-star rating.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|
Sales |
$2,315 |
$3,009 |
(23.1%) |
Net Profit |
($5,175) |
($4,313) |
(20.0%) |
EPS |
($0.16) |
($0.14) |
(14.3%) |
Diluted Shares |
33,143.3 |
30,982.0 |
7.0% |
Get back to basics with the income statement.
Margin Checkup
Q2 2007 |
Q2 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
91.3% |
92.1% |
(0.8) |
Operating Margin |
(259.1%) |
(161.3%) |
(97.8) |
Net Margin |
(223.5%) |
(143.3%) |
(80.2) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$84,243 |
$46,274 |
82.1% |
Accounts Rec. |
$1,838 |
$2,534 |
(27.5%) |
Inventory |
$2 |
$98 |
(97.7%) |
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Accounts Payable |
$1,801 |
$1,146 |
57.1% |
Long-Term Debt |
$0 |
$0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
($3,580) |
($2,300) |
(55.6%) |
Capital Expenditures |
$144 |
$1,140 |
(87.3%) |
Free Cash Flow |
($3,724) |
($3,440) |
(8.2%) |
($4,442) |
($4,579) |
3.0% |
Free cash flow is a Fool's best friend.
Related Foolishness:
Universal Display is a Motley Fool Rule Breakers recommendation. See the other stars of tomorrow singled out by David Gardner and his crack analyst team with a free 30-day trial.
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 was a Universal Display shareholder, but had no other position in any company mentioned. Fool rules are here.