On Feb. 23, FARO Technologies (NASDAQ:FARO) released Q4 2005 earnings for the period ending Dec. 31, 2005.
- FARO's top line grew 21% in the quarter.
- Operating margins took a big tumble down to 2%.
- Earnings per share fell 97% to $0.01, even worse than the company anticipated.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2005 |
Q4 2004 |
% Change | |
|---|---|---|---|---|
|
Sales |
$34,440 |
$34,481 |
$28,542 |
+20.8% |
|
Net Profit |
-- |
$183 |
$4,914 |
(96.3%) |
|
EPS |
$0.07 |
$0.01 |
$0.34 |
(97.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2005 |
Q4 2004 |
Change | |
|---|---|---|---|
|
Gross Margin |
56.59% |
57.97% |
(1.38%) |
|
Op. Margin |
2.14% |
9.80% |
(7.66%) |
|
Net Margin |
0.53% |
17.22% |
(16.69%) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2005 |
Q4 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 |
Q4 2005 |
Q4 2004 |
% Change |
|---|---|---|---|
|
Long-Term Debt |
$177 |
$146 |
+21.2% |
|
Accounts Pay. |
$12,301 |
$4,736 |
+159.7% |
Here's how inventories 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.
