On March 22, network solutions provider 3Com (NASDAQ:COMS) released third-quarter earnings for the period ended March 2.
- The government of the People's Republic of China has granted approval for 3Com to complete the acquisition of Huawei Technologies' 49% stake in Huawei-3Com (H3C) for $882 million.
- The 82% revenue increase was due primarily to consolidation of H3C revenue in the current period.
- 113 Motley Fool CAPS intelligence database players have rated 3Com as an outperform versus the S&P 500, but that's only enough for a two-star ranking.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change | |
|---|---|---|---|
|
Sales |
$323.4 |
$177.6 |
82.2% |
|
Net Profit |
($4.8) |
($32.8) |
N/A |
|
EPS |
($0.01) |
($0.08) |
N/A |
|
Diluted Shares |
394.4 |
387.8 |
1.7% |
Get back to basics with the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
47.4% |
40.8% |
6.7 |
|
Operating Margin |
(2.8%) |
(26.6%) |
23.9 |
|
Net Margin |
(1.5%) |
(18.5%) |
17.0 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$956.1 |
$706.0 |
35.4% |
|
Accounts Rec. |
$144.3 |
$89.9 |
60.6% |
|
Inventory |
$124.5 |
$31.1 |
300.6% |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$128.9 |
$92.3 |
39.7% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Management stiffed investors on the cash flow statement.
Free cash flow is a Fool's best friend.
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.
