On March 1, image sensor supplier OmniVision Technologies (NASDAQ:OVTI) released Q3 2007 earnings for the period ended Jan. 31.
- Net profit dropped by 86% from a year ago, but it isn't quite a fair comparison, since the year-ago results don't include the effects of stock compensation. Non-GAAP net income for this quarter, excluding stock compensation expense, was $11.1 million. Still, that's well below the $29.6 million recorded in Q3 2006.
- Because of pressure from much larger competitors like Micron (NYSE:MU), gross margins plummeted from over 40% a year ago to below 25%.
- One positive remains the cash on the balance sheet. Cash and short-term investments have risen to $341 million, which represents nearly half the market capitalization.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change | |
|---|---|---|---|
|
Sales |
$134 |
$137 |
(2.1%) |
|
Net Profit |
$4.1 |
$29.6 |
(86.1%) |
|
EPS |
$0.07 |
$0.53 |
(86.8%) |
|
Diluted Shares |
55.9 |
55.5 |
0.7% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* | |
|---|---|---|---|
|
Gross margin |
24.9% |
40.3% |
(15.4) |
|
Operating margin |
0.3% |
25.9% |
(25.7) |
|
Net margin |
3.1% |
21.6% |
(18.5) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest |
$341 |
$317 |
7.5% |
|
Accounts Rec. |
$73.2 |
$76.5 |
(4.3%) |
|
Inventory |
$106 |
$62.5 |
69.6% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$51.8 |
$53.7 |
(3.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
Management must have been too distracted trying to fix a struggling business to provide a cash flow statement in the earnings release.
Find out why Fools always follow the money.
Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Enterprise Value
- Foolish Fundamentals: Free Cash Flow
- Foolish Fundamentals: Valuation
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, Dan Bloom had no financial interest in any company mentioned in this column. Fool rules are here.
