On Sept. 25, Linux developer and distributor Red Hat
- Red Hat's top 25 customers all renewed their software and support contracts this quarter, and they increased their average order size by 22%. That list of major customers includes IBM
(NYSE:IBM) ,Stock Advisor pick Priceline.com(NASDAQ:PCLN) , and Nokia(NYSE:NOK) . - The Board of Directors just authorized management to repurchase as much as $250 million of common stock, and to buy back $75 million of the Convertible Senior Debentures that make up its long-term debt balance. The company hasn't paid back any debt in two years, and it bought back shares for $67 million in the same time period.
- The Linux market is heating up, and you can follow the action at Red Hat, Novell
(NASDAQ:NOVL) , and Oracle(NASDAQ:ORCL) over in our Motley Fool CAPS investor community. It's now, it's wow, and how!
(Figures in thousands, except per-share data)
Income Statement Highlights
Q2 2008 |
Q2 2007 |
Change |
|
---|---|---|---|
Sales |
$127,270 |
$99,673 |
27.7% |
Net Profit |
$18,157 |
$11,047 |
64.4% |
EPS |
$0.08 |
$0.05 |
60% |
Diluted Shares |
221,688 |
219,940 |
0.8% |
Get back to basics with the income statement.
Margin Checkup
Q2 2008 |
Q2 2007 |
Change* |
|
---|---|---|---|
Gross Margin |
84.2% |
83.5% |
0.7 |
Operating Margin |
14% |
9.5% |
4.5 |
Net Margin |
14.3% |
11.1% |
3.2 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q2 2008 |
Q2 2007 |
Change |
---|---|---|---|
Cash + ST Invest. |
$878,383 |
$837,956 |
4.8% |
Accounts Rec. |
$89,125 |
$70,346 |
26.7% |
Liabilities |
Q2 2008 |
Q2 2007 |
Change |
---|---|---|---|
Accounts Payable |
$10,085 |
$7,642 |
32% |
Long-Term Debt |
$570,000 |
$570,000 |
0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q2 2008 |
Q2 2007 |
Change |
|
---|---|---|---|
Cash From Ops. |
$49,201 |
$43,884 |
12.1% |
Capital Expenditures |
$8,375 |
$5,107 |
64% |
Free Cash Flow |
$40,826 |
$38,777 |
5.3% |
$18,001 |
$12,694 |
41.8% |
Free cash flow is a Fool's best friend.
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