On June 29, 2006, Motley Fool Stock Advisor selection Palm (NASDAQ:PALM) released full fiscal 2006 earnings for the period ending May 31, 2006.

  • Per-share earnings met Street expectations but sales disappointed.
  • Nevertheless, there's room for some optimism: Treo sales reached $1.1 billion during 2005, up 85%.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

FY
2006

FY
2005

% Change

Sales

$1,580,000

$1,578,509

$1,270,410

+24.3

Net Profit*

--

$88,543

$78,926

+12.2

EPS*

$0.85

$0.85

$0.77

+10.4

*Adjusted for restructuring expenses, stock-based compensation, and other charges

Get back to basics with a look at the income statement.

Margin Checkup

FY 2006

FY 2005

Change

Gross Margin

32.99%

30.78%

+2.22%

Op. Margin

6.67%

6.1%

+0.57%

Net Margin

5.61%

6.21%

-0.6%



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

FY 2006

FY 2005

% Change

Cash+ ST Invest.

$518,894

$362,699

+43.1

Inventory

$58,010

$35,544

+63.2

Accounts Rec.

$204,337

$140,162

+45.8



Liabilities

FY 2006

FY 2005

% Change

Total Debt

$35,000

$35,000

+0.0

Accounts Pay.

$184,501

$135,720

+35.9



Learn the ways of the balance sheet.

Cash Flow Checkup

Full-year cash flow statement not provided. (Whatever.)

Find out why Fools always follow the money.

Related Companies:

  • Intel (NASDAQ:INTC)
  • Marvell Technology (NASDAQ:MRVL)
  • Microsoft (NASDAQ:MSFT)
  • Motorola (NYSE:MOT)
  • Nokia (NYSE:NOK)
  • Research In Motion (NASDAQ:RIMM)

Related Foolishness:

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.

Intel and Microsoft are Motley Fool Inside Value recommendations. Try the service free by clicking here.

Fool contributor Tim Beyers owns shares of Nokia. You can find out what else is in his portfolio by checking Tim's Fool profile. The Motley Fool has an ironclad disclosure policy.