On July 24, data storage and management specialist EMC
- That debt load was assumed six months ago, partly to finance the $2.2 billion acquisition of data security expert RSA. Some of the remaining loan balance went into repurchasing EMC shares.
- Of course, RSA helps boost revenues here to the tune of about $125 million, so the growth is not all organic. Still, organic growth concerns never stopped Oracle
(NASDAQ:ORCL) or General Electric(NYSE:GE) from opening their wallets for a promising acquisition, did they? - The margins tell us that any indigestion from that merger was slight indeed. The star performer among divisions was, once again, VMware, with revenues climbing 89% over last year. This is from a segment that gives away server-class products for free.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$3,125 |
$2,575 |
21.4% |
|
Net Profit |
$334 |
$279 |
19.8% |
|
EPS |
$0.16 |
$0.12 |
33.3% |
|
Diluted Shares |
2,121.6 |
2,341.8 |
(9.4%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
54.4% |
53.4% |
1.0 |
|
Operating Margin |
12.5% |
10.3% |
2.3 |
|
Net Margin |
10.7% |
10.8% |
(0.1) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$4,591 |
$2,798 |
64.1% |
|
Accounts Rec. |
$1,669 |
$1,265 |
32.0% |
|
Inventory |
$823 |
$764 |
7.8% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$690 |
$617 |
11.9% |
|
Long-Term Debt |
$3,450 |
$0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$622 |
$392 |
58.5% |
|
Capital Expenditures |
$154 |
$156 |
(1.2%) |
|
Free Cash Flow |
$468 |
$236 |
97.9% |
|
$406 |
$307 |
32.4% |
Free cash flow is a Fool's best friend.
Related Foolishness:
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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, Anders Bylund had no position in any company mentioned. Fool rules are here.
