On Feb. 23, FARO Technologies (NASDAQ:FARO) released 2005 earnings for the period ended Dec. 31.
- 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:
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.
At the time of publication, Fool analyst Andy Cross did not own shares in any company mentioned. Fool rules are here.
