On Feb. 28, medical-device specialist Integra Lifesciences Holdings (NASDAQ:IART) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenues rose by 71.8%, primarily because of growth in sales of extremity-reconstruction implants, bone-growth products, acquired products, surgical instruments, and ultrasonic surgical systems.
  • Gross margin declined by 180 basis points as a result of adjustments of $0.6 million in inventory using fair value purchase accounting.
  • For the first quarter, the company expects earnings per share to be around $0.32-$0.34. For 2007, it's forecasting $1.70-$1.80, and it expects $2.05-$2.25 for 2008.
  • Integra has a three-star rating in Motley Fool CAPS, the Fool's community-intelligence service.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$125.4

$73.0

71.8%

Net Profit

$10.1

$11.2

(9.7%)

EPS

$0.34

$0.33

3.0%

Diluted Shares

30.1

34.1

(11.7%)

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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

59.0%

60.8%

(1.8)

Operating Margin

16.1%

20.4%

(4.4)

Net Margin

8.1%

15.4%

(7.3)

*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.*

$22.7

$143.4

(84.2%)

Accounts Rec.

$85.0

$49.0

73.5%

Inventory

$94.4

$67.5

39.9%

*Cash and short-term investments include non-current portions.

Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

No Data

No Data

No Data

Long-Term Debt

$220.1

$118.4

(85.9)

Learn the ways of the balance sheet.

Cash Flow Highlights
A statement of cash flows was not provided. Boooo!

Find out why Fools always follow the money.

Related Foolishness:

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.