On July 18, networking specialist Juniper Networks
- The year-ago quarter wasn't as bad as the GAAP numbers might indicate. Juniper took a $1.28 billion charge for goodwill lost, based on rocky results from its service layer technologies division. Since then, the share price has bounced back by 130%, and that troubled segment is growing in lockstep with the mainstay infrastructure operations.
- Excluding that huge item, net of tax effects, last year's operating margin would have been 17.2%, and the net take 11.7%.
- The entire long-term debt balance just became current, so the company will need to either spend some cash there or find a new credit facility before too long.
- But, considering that Juniper spent $1.3 billion on share buybacks in this quarter alone, this should not be a problem. The current $2 billion repurchase authorization is nearly depleted after $1.6 billion of buybacks.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$664.9 |
$567.5 |
17.2% |
|
Net Profit |
$86.2 |
($1,206.5) |
N/A |
|
EPS |
$0.15 |
($2.13) |
N/A |
|
Diluted Shares |
580.7 |
566.1 |
2.6% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
66.8% |
66.7% |
0.1 |
|
Operating Margin |
13.0% |
(208.9%) |
221.9 |
|
Net Margin |
13.0% |
(212.6%) |
225.6 |
*Expressed in percentage points
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,203.0 |
$1,636.0 |
(26.5%) |
|
Accounts Rec. |
$258.8 |
$250.8 |
3.2% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$176.7 |
$136.6 |
29.3% |
|
Long-Term Debt |
$399.9 |
$399.9 |
0.0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$290.2 |
$273.5 |
6.1% |
|
Capital Expenditures |
$42.7 |
$25.2 |
69.3% |
|
Free Cash Flow |
$247.5 |
$248.3 |
(0.3%) |
|
$93.7 |
$97.5 |
(3.8%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: Climbing Juniper Hill
- Juniper Takes a Deep Breath
- Juniper Looking Ahead: Fool by Numbers
- Foolish Fundamentals: GAAP
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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, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here.
