On July 27, Audible (NASDAQ:ADBL) released Q2 2006 earnings for the period ended June 30.

  • Including stock-based compensation, the company missed expectations, though not by a large margin. Without such compensation included, it actually beat estimates with a $0.03-per-share loss.
  • Free cash flow jumped more than 300% from last year, going from -$7.4 million to $1.7 million, sequentially.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$21,500

$19,141

$15,298

25.1%

Net Profit

--

($2,182)

$823

N/A

EPS

($0.05)

($0.09)

$0.03

N/A

Diluted Shares

24,502

25,987

(5.7%)



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

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin

56.78%

59.98%

(3.20)

Operating Margin

(15.11%)

2.84%

N/A

Net Margin

(11.40%)

5.38%

N/A

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$60,541

$66,548

(9%)

Accounts Rec.

$2,537

$1,523

66.6%

Inventory

$801

$151

430.5%


Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

$2,698

$1,474

83%

Long-Term Debt

$0

$0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

Q2 2006

Q2 2005

Change

Cash From Ops.

$1,995

$1,674

19.2%

Capital Expenditures

$257

$1,254

(79.5%)

Free Cash Flow

$1,738

$420

313.8%



Find out why Fools always follow the money.

Related Companies:

  • Amazon.com (NASDAQ:AMZN)
  • Apple (NASDAQ:AAPL)
  • Barnes & Noble (NYSE:BKS)
  • Borders Group (NYSE:BGP)
  • MediaBay (NASDAQ:MBAY)

Related Foolishness:

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At the time of publication, Fool contributor Jim Mueller owned shares in Audible. Fool rules are here.