On Monday, Dec. 18, software mammoth Oracle (NASDAQ:ORCL) released Q2 earnings for the period ended Nov. 30.
- Sales and profits continue their rapid growth rates, mainly thanks to Oracle's acquisition spree. Last January, it closed the Siebel deal, and that company had $469 million of revenue and $89 million of net income in the closest comparable 2005 quarter. Back that out, and you have about 11% more-or-less-organic revenue growth, and 10% earnings growth.
- With the fresh revenues, Oracle also absorbed Siebel's lower margins.
- And of course, that hefty debt load matches the $5.8 billion price tag of Siebel nearly dollar for dollar, though the company certainly had other financing options at the time. After the acquisition, Oracle had $4.36 billion of new cash on its balance sheet.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Sales |
$4,163.0 |
$3,292.0 |
26.5% |
|
Net Profit |
$967.0 |
$798.0 |
21.2% |
|
EPS |
$0.18 |
$0.15 |
20% |
|
Diluted Shares |
5,287.0 |
5,238.0 |
0.9% |
|
ROE |
25.4% |
27.2% |
(6.6%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
75.38% |
77.00% |
(1.62) |
|
Operating Margin |
32.60% |
33.90% |
(1.30) |
|
Net Margin |
23.23% |
24.24% |
(1.01) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$7,825.0 |
$3,403.0 |
129.9% |
|
Accounts Rec. |
$2,543.0 |
$1,976.0 |
28.7% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$284.0 |
$240.0 |
18.3% |
|
Long-Term Debt |
$5,735.0 |
$156.0 |
3576.3% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$1,866.0 |
$298.0 |
526.2% |
|
Capital Expenditures |
$106.0 |
$34.0 |
211.8% |
|
Free Cash Flow |
$1,760.0 |
$264.0 |
566.7% |
|
$1,129.0 |
$871.0 |
29.6% |
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At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here .
