On Nov. 2, Integra LifeSciences (NASDAQ:IART) released third-quarter earnings for the period ended Sept. 30.

  • Revenues skyrocketed this past quarter, up nearly 70% over the year-ago period.
  • An in-process R&D charge of $5.6 million related to the KMI acquisition -- along with expensing stock options -- contributed to a significant decline in operating margin.
  • The company's board of directors authorized the repurchase of an additional $75 million worth of stock by December 2007.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$111

$116.6

$69.3

68.2%

Net Profit

--

$2.6

$10.5

(75.3%)

EPS

$0.34

$0.09

$0.33

(72.7%)

Diluted Shares

--

29.9

34.3

(12.9%)



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

59.23%

61.93%

(2.70)

Operating Margin

10.13%

23.21%

(13.08)

Net Margin

2.22%

15.12%

(12.90)

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest. *

$24.3

$135.8

(82.1%)

Accounts Rec.

$76.7

$46.8

64%

Inventory

$93.8

$69.0

35.9%

*Cash and cash equivalents in 2006 includes non-current portion.

Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

No Data

$9.1

No Data

Long-Term Debt*

$375.6

$149.7

150.9%

*includes current liabilities

Learn the ways of the balance sheet.

Cash Flow Highlights

Unfortunately, Integra LifeSciences did not provide a statement of cash flows in its earnings press release.

Find out why Fools always follow the money.

Related Companies:

  • Intermagnetics General (NASDAQ:IMGC)
  • Intuitive Surgical (NASDAQ:ISRG)
  • West Pharmaceutical Services (NYSE:WST)

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