On Feb. 8, McAfee (NYSE:MFE) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenues grew 20.5% with both the corporate and retail divisions growing at roughly the same pace.
  • On the flip side, GAAP operating income decreased 24% to $37.1 million, largely due to increased spending in marketing and sales and "SEC and compliance costs."
  • Management estimates 2007 GAAP EPS of $0.97 to $1.17, the average of which would be a 27% jump over full-year 2006.
  • Motley Fool CAPS players are split on whether MFE will under- or outperform the S&P 500.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$305.2

$253.3

20.5%

Net Profit

$35.0

$38.6

(9.3%)

EPS

$0.21

$0.23

(8.7%)

Diluted Shares

162.9

171.4

(5.0%)



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

87.8%

80.9%

7.0

Operating Margin

12.2%

19.2%

(7.0)

Net Margin

11.5%

15.2%

(3.8)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$1,240.2

$1,257.0

(1.3%)

Accounts Rec.

$170.7

$158.7

7.5%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$35.6

$34.7

2.6%

Long-Term Debt*

$137.5

$142.6

(3.6%)

*Includes accrued taxes.

Learn the ways of the balance sheet.

Related Companies:

  • Check Point Software Technology (NASDAQ:CHKP)
  • Trend Micro (NASDAQ:TMIC)
  • Novell (NASDAQ:NOVL)
  • VASCO Data Security International (NASDAQ:VDSI)

Related Foolishness:

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