On Aug. 10, Worldspace (NASDAQ:WRSP) released Q2 2006 earnings for the period ended June 30.

  • Revenues increase 61.5%.
  • Losses worsen to -$36.7 million and -$0.98 per share.
  • Subscriber count grows 150% year over year to 160,000.
  • Subscriber acquisition costs remain level; costs per gross addition decline slightly; churn stands at 64% year to date.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$3,610

$3,759

$2,328

61.5%

Net Profit

--

($36,661)

($22,020)

N/A

EPS

($0.76)

($0.98)

($0.95)

N/A

Diluted Shares

--

37,240

23,211

60.4%



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin

(139.29%)

(70.62%)

(68.67)

Operating Margin

(1146.48%)

(1185.87%)

39.39

Net Margin

(975.29%)

(945.88%)

(29.41)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$14,586

$83,338

(82.5%)

Accounts Rec.

No Data

$1,600

N/A

Inventory

No Data

$2,809

N/A



Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

No Data

$21,535

N/A

Long-Term Debt

$155,200

$155,000

0.1%



Learn the ways of the balance sheet.

Cash Flow Highlights

Q2 2006*

Q2 2005

Change

Cash From Ops.

($50,134)

($60,214)

N/A

Capital Expenditures

$5,656

$3,650

55%

Free Cash Flow

($55,790)

($63,864)

N/A

*Year-to-date 2006 figures estimated from conference call notes on Q2 cash flow, together with Q1 cash flow figures as reported on form 10Q.

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Related Companies:

  • XM Satellite Radio (NASDAQ:XMSR)
  • Sirius Satellite Radio (NASDAQ:SIRI)

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At the time of publication, Seth Jayson had no positions in any company mentioned. Fool rules are here.