On Oct. 23, integrated circuits maker Silicon Laboratories (NASDAQ:SLAB) released third-quarter earnings for the period ending Sept. 30, 2006.

  • Revenues were up by 11% to $116 million, driven mostly by growth in broad-based mixed-signal product sales.
  • Free cash flow dropped 58% due to a large increase in capital expenditures, mostly related to the acquisition of other companies.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$114

$116

$104

11.2%

Net Profit*

--

$5

($1)

N/A

EPS

$0.23

$0.08

($0.01)

N/A

Diluted Shares

--

57

54

6.3%

*Net profit does not include income from discontinued operations.

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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

54.87%

54.51%

0.36

Operating Margin

3.66%

2.46%

1.20

Net Margin

4.10%

(0.72%)

4.82

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$392

$335

16.9%

Accounts Rec.

$49

$61

(18.6%)

Inventory

$45

$27

67.7%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$46

$33

40.2%

Long-Term Debt

$18

$5

260.8%

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$73

$74

(2.5%)

Capital Expenditures

$46

$12

283.6%

Free Cash Flow

$27

$62

(57.5%)

*Capital expenditures include acquisitions.

Find out why Fools always follow the money.

Related Companies:

  • LSI Logic (NYSE:LSI)
  • Himax Technologies (NASDAQ:HIMX)
  • Trident Microsystems (NASDAQ:TRID)
  • Xilinx (NASDAQ:XLNX)

Related Foolishness:

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