On Dec. 7, semiconductor manufacturer National Semiconductor
- Inventory buildup over the past year made the cash conversion metrics look a lot worse this time around. Inventory levels actually decreased 9.1% sequentially, though, so recent trends are pointing the right way.
- Lower revenues put a squeeze on profit margins, as SG&A expenses increased by 13.5%.
- OK, so earnings were down. How about free cash flow? Down. Operational cash flow? Also down. Owner earnings? Sorry, bud. No matter how you slice it, this was a pretty disappointing earnings performance.
(Figures in millions, except per-share data)
Income Statement Highlights
Avg. Est. |
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|---|
Sales |
$501 |
$501.6 |
$544.0 |
(7.8%) |
Net Profit |
-- |
$91.4 |
$114.7 |
(20.3%) |
EPS |
$0.27 |
$0.27 |
$0.32 |
(15.6%) |
Diluted Shares |
-- |
335.6 |
356.7 |
(5.9%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q2 2007 |
Q2 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
58.89% |
57.22% |
1.67 |
Operating Margin |
24.80% |
29.54% |
(4.74) |
Net Margin |
18.22% |
21.08% |
(2.86) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$780.6 |
$970.0 |
(19.5%) |
Accounts Rec. |
$184.7 |
$168.7 |
9.5% |
Inventory |
$177.8 |
$160.7 |
10.6% |
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Accounts Payable |
$64.1 |
$91.3 |
(29.8%) |
Long-Term Debt |
$21.1 |
$21.1 |
0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
Six-Month Totals |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Cash From Ops. |
$278.2 |
$366.2 |
(24%) |
Capital Expenditures |
$70.6 |
$46.4 |
52.2% |
Free Cash Flow |
$207.6 |
$319.8 |
(35.1%) |
$170.0 |
$203.9 |
(16.6%) |
Find out why Fools always follow the money.
Cash Management Checkup
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|
Days in Inventory |
81.5 |
61.5 |
20.1 |
Days in Receivables |
34.1 |
26.7 |
7.4 |
Days Payables Outstanding |
32.0 |
30.2 |
1.8 |
Cash Conversion Cycle |
83.7 |
58.0 |
25.7 |
Read up on cash conversion metrics.
Related Companies:
-
Texas
Instruments
(NYSE:TXN) -
Marvell Technology
(NASDAQ:MRVL) -
On Semiconductor
(NASDAQ:ONNN) -
Omnivision Technologies
(NASDAQ:OVTI) -
Silicon Image
(NASDAQ:SIMG) -
Microsemi
(NASDAQ:MSCC)
Related Foolishness:
- Have a look at National Semi, the 5-star CAPS stock.
- Foolish Forecast: National Semi Taking It Slow
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Inventory
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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 no position in any company mentioned. Fool rules are here.