On Jan. 24, EMC (NYSE:EMC) released Q4 and FY 2005 earnings for the period ending Dec. 31, 2005.

  • Per-share earnings of $0.06 included more than $260 million in special charges relating to tax matters and workforce changes. Without them, EMC booked $0.17 per stub in 2005, equal to Street expectations.
  • Neither figure, however, included options expensing, which dragged down earnings by an additional $0.03 per stub in Q4.
  • Kudos to Foolish colleague Rich Smith for forecasting that inventory would be a huge issue for EMC in Q4. It was. In fact, it marks the second consecutive quarter that the company grew its stockpile twice as fast as sales year over year. Uh-oh.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q4 2005

Q4 2004

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Net Profit










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

Margin Checkup

Q4 2005

Q4 2004


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Op. Margin




Net Margin




Margins are the earnings engine. See how they work.

Balance Sheet Highlights


FY 2005

FY 2004

% Change

Cash+ ST Invest.








Accounts Rec.





Long-Term Debt




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Cash Flow Highlights

FY 2005

FY 2004

% Change

Cash From Ops




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*Adjusted to reflect the effect of cash acquisitions.

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Related companies:

  • Dell (NASDAQ:DELL)
  • Hewlett-Packard (NYSE:HPQ)
  • Hitachi (NYSE:HIT)
  • Network Appliance (NASDAQ:NTAP)
  • Sun Microsystems (NASDAQ:SUNW)

For related Foolishness:

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Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Fool profile . The Motley Fool has an ironclad disclosure policy .