On Sept. 26, health and security imaging expert Analogic (NASDAQ:ALOG) released full-year earnings for the fiscal 2006 period ended July 31.

  • Net profits seem stable enough, but rest on selling off parts of the business. In 2005, the company sold a stake in Cedara Software worth $43.8 million to produce its tidy income, and this year $20.2 million of net gain were derived from the sale of the Camtronics business unit to Emageon.
  • The original investment in Cedara back in 2001 was a mere $7.5 million -- not a bad return on that investment.
  • Given that Analogic keeps simplifying its operations, you might expect margin improvements as operations tighten up a bit. That has not happened here, and the core business is operating at a net loss today.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2006

FY 2005

Change

Sales

$346,230

$351,445.0

$326,479.0

7.6%

Net Profit

--

$25,066.0

$28,862.0

(13.2%)

EPS

$1.06

$1.81

$2.12

(14.6%)

Diluted Shares

13853.0

13619.0

1.7%


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

Margin Checkup

FY 2006

FY 2005

Change*

Gross Margin

34.47%

37.79%

(3.32)

Operating Margin

(1.49%)

0.37%

(1.86)

Net Margin

7.13%

8.84%

(1.71)
*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

FY 2006

FY 2005

Change

Cash + ST Invest.

$258,237.0

$220,454.0

17.1%

Accounts Rec.

$52,112.0

$50,978.0

2.2%

Inventory

$58,943.0

$64,290.0

(8.3%)

Liabilities

FY 2006

FY 2005

Change

Accounts Payable

$16,898.0

$20,359.0

(17%)

Long-Term Debt

$0.0

$0.0

N/A


Learn the ways of the balance sheet.

Cash Flow Highlights

No cash flow statement provided. Boo! Hiss!

Find out why Fools always follow the money.

Competitors:

  • Hologic (NASDAQ:HOLX)
  • CSP Inc. (NASDAQ:CSPI)
  • Merge Technologies (NASDAQ:MRGE)
  • Curtiss-Wright (NYSE:CW)
  • Emageon (NASDAQ:EMAG)
  • TransTechnology (AMEX:BZC)

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 contributor Anders Bylund had positions in none of these companies. Fool rules are here .