On May 30, computing platform veteran Novell (NASDAQ:NOVL) released second-quarter earnings for the period ended April 30, 2007.
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Linux sales amounted to $29 million, 110% more than in the year-ago period; 25% of those sales came from the Microsoft (NASDAQ:MSFT) cross-promotion deal.
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On the other hand, revenue from good old NetWare and its sequel, Open Enterprise Server, declined 14% year over year.
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The just-completed review of 10 years' worth of options accounting practices showed up as a $5.9 million expense against net income. Excluding that decidedly one-time cost, Novell made, rather than lost, a penny per share.
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It's hard to complain about a 10% share buyback in just one year, and the company has plenty of cash left to buy back more of its own stock.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Sales |
$239.2 |
$233.1 |
2.6% |
|
Net Profit |
($2.2) |
$3.3 |
N/A |
|
EPS |
($0.01) |
$0.01 |
N/A |
|
Diluted Shares |
346.5 |
385.3 |
(10.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
70.7% |
66.8% |
3.9 |
|
Operating Margin |
(4.6%) |
(2.3%) |
(2.3) |
|
Net Margin |
(0.9%) |
1.4% |
(2.4) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,791.7 |
$1,339.0 |
33.8% |
|
Accounts Rec. |
$178.3 |
$219.2 |
(18.7%) |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$43.4 |
$46.7 |
(7.1%) |
|
Long-Term Debt |
$600.0 |
$600.0 |
0.0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
($28.6) |
($23.9) |
(19.4%) |
|
Capital Expenditures |
$7.6 |
($0.3) |
N/A |
|
Free Cash Flow |
($36.1) |
($23.6) |
(52.9%) |
|
$5.1 |
$15.4 |
(67.0%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
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At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.
