On Feb. 23, FARO Technologies
- Diluted EPS dropped 46% and missed analyst estimates.
- Sales increased 29%, but operating and net margins fell.
- Inventories increased 75%, contributing to negative operating cash flow.
(Figures in thousands, except per-share data)
Income Statement Highlights
Avg. Est. |
FY 2005 |
FY 2004 |
% Change |
|
---|---|---|---|---|
Sales |
$125,730 |
$125,590 |
$97,020 |
+29.4% |
Net Profit |
-- |
$8,179 |
$14,931 |
-45.2% |
EPS |
$0.62 |
$0.57 |
$1.06 |
-46.2% |
Get back to basics with a look at the income statement.
Margin Checkup
FY 2005 |
FY 2004 |
Change |
|
---|---|---|---|
Gross Margin |
58.07% |
61.84% |
-3.77% |
Op. Margin |
8.14% |
15.03% |
-6.89% |
Net Margin |
6.51% |
15.39% |
-8.88% |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
FY 2005 |
FY 2004 |
% Change |
---|---|---|---|
Cash+ ST Invest. |
$25,768 |
$38,842 |
-33.7% |
Inventory |
$28,650 |
$16,378 |
+74.9% |
Accounts Rec. |
$28,654 |
$22,484 |
+27.4% |
Liabilities |
FY 2005 |
FY 2004 |
% Change |
---|---|---|---|
Long-Term Debt |
$177 |
$146 |
+21.2% |
Accounts Pay. |
$12,301 |
$4,736 |
+159.7% |
Inventories at work.
Cash Flow Highlights
FY 2005 |
FY 2004 |
% Change |
|
---|---|---|---|
Cash From Ops |
$(3,404) |
$7,295 |
N/A |
Capital Expend. |
$3,937 |
$2,451 |
+60.6% |
Free Cash Flow |
$(7,341) |
$4,844 |
N/A |
Related Foolishness:
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At the time of publication, Fool analyst Andy Cross did not own shares in any company mentioned. Fool rules are here.