On Tuesday, Aug. 29, networking software company Novell (NASDAQ:NOVL) released preliminary Q3 2006 earnings for the period ended July 31.
- Earnings and free cash flow jumped sky-high, despite lower revenues than last year. However, a large portion of that gain came from discontinued operations, and Novell reported a net loss of $0.01 per diluted share on continuing operations.
- The company reported 30% revenue growth year over year in the Linux segment, and 46% in Identity and Access Management. NetWare-related revenues declined 19% year over year.
- The results are "preliminary" because Novell is currently conducting a voluntary review of its stock-option granting practices, and might need to restate previously filed financial statements.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$242 |
$241 |
$252 |
(4.4%) |
|
Net Profit |
-- |
$12 |
$2 |
452.4% |
|
EPS |
$0.03 |
$0.03 |
$0.00 |
N/A |
|
Diluted Shares | -- |
340 |
385 |
(11.8%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
66.57% |
66.44% |
0.13 |
|
Operating Margin |
(6.34%) |
(0.36%) |
(5.98) |
|
Net Margin |
4.81% |
0.83% |
3.98 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,299 |
$1,604 |
(19%) |
|
Accounts Rec. |
$236 |
$255 |
(7.6%) |
|
Inventory |
N/A |
N/A |
N/A |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$40 |
$49 |
(17.2%) |
|
Long-Term Debt |
$600 |
$600 |
0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$33 |
$16 |
111.6% |
|
Capital Expenditures |
$2 |
$9 |
(73.8%) |
|
Free Cash Flow |
$31 |
$7 |
336.7% |
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Related Companies:
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- Sun Microsystems (NASDAQ:SUNW)
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- Entrust (NASDAQ:ENTU)
- Computer Sciences (NYSE:CSC)
- SCO Group (NASDAQ:SCOX)
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At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here .
