On Oct. 26, security software maker McAfee (NYSE:MFE) released preliminary third-quarter earnings for the period ending Sept. 30, 2006.

  • The earnings are "preliminary" because the firm is restating some past results related to the options backdating scandal.
  • Despite a bump in its price, McAfee remains just a one-star stock in Motley Fool CAPS.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$276

$288

$253

13.8%

Net Profit

--

$58

$63

(7.3%)

EPS

$0.30

$0.36

$0.37

(2.7%)

Diluted Shares

--

162

171

(5.4%)



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

82.88%

86.89%

(4.01)

Operating Margin

23.35%

30.30%

(6.95)

Net Margin

20.23%

24.85%

(4.62)

*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.

$1,234

$440

180.3%

Accounts Rec.

$135

$106

26.9%

Inventory

--

--

--



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$37

$28

32.5%

Long-Term Debt

--

--

--



Learn the ways of the balance sheet.

Cash Flow Highlights
Not much in the press release related to cash flow.

Find out why Fools always follow the money.

Related Companies:

  • CA (NYSE:CA)
  • Symantec (NASDAQ:SYMC)
  • VeriSign (NASDAQ:VRSN)

Related Foolishness:

Symantec is an Inside Value recommendation. McAfee is a former Stock Advisor pick.

To find out what more than 11,500 investors think about McAfee -- and add your voice to the mix -- check out CAPS, the Fool's new community-intelligence stock-rating tool.

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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.