On Tuesday, Aug. 15, Photronics (NASDAQ:PLAB) released Q3 2006 earnings for the period ended July 31, 2006.
- While all margins came down from last year, the drop gets steeper as we walk down the income statement toward the bottom line. That's often a sign of issues with cost control.
- The lower cash on hand is partly due to a $65.5 million investment in a joint venture with Micron Technology (NYSE:MU) this quarter.
- In all the doom and gloom, it's encouraging to see free cash flow turning positive.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$108 |
$108 |
$115 |
(5.8%) |
|
Net Profit |
-- |
$5 |
$15 |
(68.9%) |
|
EPS |
$0.12 |
$0.11 |
$0.35 |
(68.6%) |
|
Diluted Shares |
42 |
45 |
(7.9%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
30.41% |
34.46% |
(4.05) |
|
Operating Margin |
8.13% |
15.58% |
(7.45) |
|
Net Margin |
4.25% |
12.88% |
(8.63) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$164 |
$316 |
(48.1%) |
|
Accounts Rec. |
$80 |
$111 |
(27.3%) |
|
Inventory |
$23 |
$17 |
36.9% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$47 |
$80 |
(41.7%) |
|
Long-Term Debt |
$252 |
$262 |
(4%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$30 |
$46 |
(36%) |
|
Capital Expenditures |
$27 |
$57 |
(53.1%) |
|
Free Cash Flow |
$3 |
($11) |
N/A |
Find out why Fools always follow the money.
Related Companies:
- Micron
- Entegris (NASDAQ:ENTG)
- Taiwan Semiconductor (NYSE:TSM)
- NEC (NASDAQ:NIPNY)
- Rockwood Holdings (NYSE:ROC)
- IBM (NYSE:IBM)
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At the time of publication, Anders Bylund had no position in any of the companies mentioned. Fool rules are here .
