On Feb. 1, information-technology software maker CA (NYSE:CA) released third-quarter earnings for the period ended Dec. 31.

  • Investors liked what they saw from the company formerly known as Computer Associates, sending the shares up about 7% in afternoon trading.
  • Sales were up 4%, but cash from operations surged 39%.
  • Our Motley Fool CAPS community ominously rates the stock one star (out of five).

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$1,002.0

$965.0

3.8%

Net Profit

$52.0

$56.0

(7.1%)

EPS

$0.10

$0.09

11.1%

Diluted Shares

549.0

606.0

(9.4%)



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

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

91.9%

93.2%

(1.2)

Operating Margin

9.5%

5.7%

3.8

Net Margin

5.2%

5.8%

(0.6)

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$1,842.0

$1,833.0

0.5%

Accounts Rec.

$290.0

$409.0

(29.1%)



Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable

--

--

--

Long-Term Debt

$2,575.0

$1,810.0

42.3%



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$587.0

$422.0

39.1%

Capital Expenditures

$37.0

$56.0

(33.9%)

Free Cash Flow

$550.0

$366.0

50.3%



Find out why Fools always follow the money.

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Related Foolishness:

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