On Oct. 18, computer memory maker NVE (NASDAQ:NVEC) released second-quarter earnings for the period ended Sept. 30.
- Fool contributor Stephen Ellis is less than thrilled with the story behind these numbers, even though the stock closed 20% higher Thursday.
- Revenues and EPS did quite a bit better than Wall Street had expected.
- Revenues increased by 44% due to an 87% increase in product sales, which was partially offset by a 40% decrease in contract research and development revenue.
- Higher operating margins helped push net income up.
- Free cash flow decreased slightly in year-to-date numbers because of higher capital spending.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|---|
|
Sales |
$3.7 |
$4.40 |
$3.05 |
44% |
|
Net Profit |
-- |
$1.28 |
$0.36 |
253% |
|
EPS |
$0.20 |
$0.27 |
$0.08 |
238% |
|
Diluted Shares |
-- |
4.79 |
4.68 |
2.4% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
67.28% |
46.67% |
20.61 |
|
Operating Margin |
42.24% |
16.75% |
25.49 |
|
Net Margin |
29.18% |
11.93% |
17.25 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$0.61 |
$2.70 |
(77.3%) |
|
Accounts Rec. |
$2.14 |
$1.97 |
8.5% |
|
Inventory |
$2.25 |
$1.68 |
33.7% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$0.27 |
$0.39 |
(29.5%) |
|
Long-Term Debt |
$0.00 |
$0.00 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$1.88 |
$1.69 |
11.3% |
|
Capital Expenditures |
$0.23 |
$0.00 |
N/A |
|
Free Cash Flow |
$1.65 |
$1.69 |
(2.4%) |
Find out why Fools always follow the money.
Related companies:
- On Track Innovations (NASDAQ:OTIV)
- CEVA (NASDAQ:CEVA)
- Bookham (NASDAQ:BKHM)
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.
Rex Moore reviewed this story. He owns no companies mentioned.
