On Nov. 2, Keynote Systems
- Net income and EPS benefited from a $2.7 million tax credit from the partial recognition of a deferred tax asset. Without it, EPS would have been $0.23 per stub, in line with Wall Street estimates. Revenue, however, came up short of expectations.
- Margins took a beating all the way down the line. That includes net margin, which dropped to 8.8% after excluding the tax gain provided by the deferred tax asset. Ouch.
- No doubt, the squeeze on margins also hurt cash flow. Free cash flow declined a breathtaking 34% from 2004 to 2005.
Figures in thousands, except per-share data
Income Statement Highlights (What's this?)
|
Avg. Est. |
FY 2005 |
FY 2004 |
% Change |
|
|---|---|---|---|---|
|
Sales |
$53,850 |
$53,692 |
$42,403 |
+26.6% |
|
Net Profit |
-- |
$7,365 |
$4,647 |
+58.5% |
|
EPS |
$0.23 |
$0.35 |
$0.22 |
+59.1% |
Margin Checkup (What's this?)
|
FY 2005 |
FY 2004 |
Change |
|
|---|---|---|---|
|
Gross Margin |
72.97% |
77.65% |
-4.67% |
|
Op. Margin |
3.22% |
4.75% |
-1.54% |
|
Net Margin |
13.72% |
10.96% |
+2.76% |
Balance Sheet Highlights (What's this?)
|
Assets |
FY 2005 |
FY 2004 |
% Change |
|---|---|---|---|
|
Cash + ST Invest. |
$133,803 |
$148,117 |
-9.7% |
|
Inventory |
$ -- |
$ -- |
N/A |
|
Accounts Rec. |
$6,387 |
$6,138 |
+4.1% |
|
Liabilities |
FY 2005 |
FY 2004 |
% Change |
|---|---|---|---|
|
Capital Leases |
$67 |
$115 |
-41.7% |
|
Accounts Pay. |
$538 |
$1,692 |
-68.2% |
Cash Flow Highlights* (What's this?)
|
FY 2005 |
FY 2004 |
% Change |
|
|---|---|---|---|
|
Cash From Ops |
$10,961 |
$15,163 |
-27.7% |
|
Capital Expend. |
$3,634 |
$4,015 |
-9.5% |
|
Free Cash Flow |
$7,327 |
$11,148 |
-34.3% |
Related Companies:
-
Akamai
(NASDAQ:AKAM) -
Loudeye
(NASDAQ:LOUD) -
Mercury Interactive
(NASDAQ:MERQE) -
Microsoft
(NASDAQ:MSFT) -
NetIQ
(NASDAQ:NTIQ) - VitalStream
Related Foolishness:
- The Keynote just won't turn.
- Keynote's fourth quarter was a little off-key.
- Were you there when Amazon
(NASDAQ:AMZN) , a Stock Advisor recommendation, blacked out? Keynote was. - Keynote's web performance data says travel agents are flying high on the Web.
- The company has been cash-rich for more than two years now.
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