On June 6, Nortel (NYSE:NT) released Q1 2006 earnings for the period ended March 31. The short story:
- Revenues flat.
- Margins in the dumper.
- Free cash burn less bad than last year, but how exciting is that?
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2006 |
Q1 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$2,540 |
$2,382 |
$2,389 |
(0.3%) |
|
Net Profit |
-- |
($167) |
($104) |
N/A |
|
EPS |
($0.01) |
($0.04) |
($0.02) |
N/A |
|
Diluted Shares |
4,339 |
4,338 |
0.0% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2006 |
Q1 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
38.12% |
42.36% |
(4.24) |
|
Operating Margin |
(6.68%) |
(3.26%) |
(3.42) |
|
Net Margin |
(7.01%) |
(4.35%) |
(2.66) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q1 2006 |
Q1 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,695 |
$3,430 |
(21.4%) |
|
Accounts Rec. |
$2,620 |
$2,624 |
(0.2%) |
|
Inventory |
$1,984 |
$1,974 |
0.5% |
|
Liabilities |
Q1 2006 |
Q1 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,069 |
$974 |
9.8% |
|
Long-Term Debt |
$2,445 |
$2,566 |
(4.7%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q1 2006 |
Q1 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
($174) |
($263) |
N/A |
|
Capital Expenditures |
$99 |
$54 |
83.3% |
|
Free Cash Flow |
($273) |
($317) |
N/A |
Find out why Fools always follow the money.
Related companies:
- Juniper Networks (NASDAQ:JNPR)
- Avaya (NYSE:AV)
- Cisco (NASDAQ:CSCO)
Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Enterprise Value
- Foolish Fundamentals: Free Cash Flow
- Foolish Fundamentals: Valuation
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, Seth Jayson had no positions in any company mentioned here. Fool rules are here.
