On July 31, InterNAP Network (NASDAQ:INAP), which helps companies with all things Internet, released second-quarter earnings for the period ended June 30.

  • Sales climbed 33%, reflecting strong performance across all business units.
  • For the full year, management expects revenues to improve 30%-35% over 2006.
  • The stock carries a three-star rating (out of five) in Motley Fool CAPS.

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

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$58,494

$43,905

33.2%

Net Profit

($1,683)

$713

N/A

EPS

($0.03)

$0.02

N/A

Diluted Shares

48,515

35,787

35.6%

 Get back to basics with the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

40.2%

39.6%

0.6

Operating Margin

(3.5%)

0.8%

(4.3)

Net Margin

(2.9%)

1.6%

(4.5)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$60,221

$47,752

26.1%

Accounts Rec.

$26,641

$19,622

35.8%

Inventory

$375

$580

(35.3%)

Liabilities

Q2 2007

Q2 2006

Change

Accounts Payable

$13,388

$7,697

73.9%

Long-Term Debt

$1,962

$5,578

(64.8%)

The balance sheet reflects the company's health.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$12,260.0

$12,783.0

(4.1%)

Capital Expenditures

$17,024.0

$5,543.0

207.1%

Free Cash Flow

($4,764.0)

$7,240.0

N/A

Free cash flow is a Fool's best friend.

Related Foolishness:

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