On Jan. 29, CNET (NASDAQ:CNET) released fourth-quarter earnings for the period ended Dec. 31.
- Take a peek at this article for the full analysis on CNET's quarter.
- While revenues increased 14.2%, the bottom line steeply dropped by 70% year over year. Excluding a stock option investigation cost of $6.5 million, stock compensation expense, and other one-time charges, adjusted net income would still have been 5.3% lower year over year at $19.6 million.
- During the quarter CNET Networks added two more companies to their portfolio: EA3W, a consumer electronics buying guide based in Beijing; and GameKult, a French provider of interactive content for video game enthusiasts.
- CNET has a two-star rating in CAPS, our new interactive stock database.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$118.4 |
$103.7 |
14.2% |
|
Net Profit |
$6.3 |
$20.7 |
(70.0%) |
|
EPS |
$0.04 |
$0.13 |
(69.2%) |
|
Diluted Shares |
152.6 |
155.6 |
(2.0%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
61.4% |
61.9% |
(0.5) |
|
Operating Margin |
8.2% |
22.1% |
(13.9) |
|
Net Margin |
5.3% |
20.0% |
(14.7) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest.* |
$61.7 |
$97.5 |
(36.7%) |
|
Accounts Rec. |
$90.4 |
$85.3 |
6.0% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$10.1 |
$8.3 |
20.7% |
|
Long-Term Debt** |
$18.3 |
$141.8 |
(87.1%) |
**Includes current portion of long-term debt
Learn the ways of the balance sheet.
Cash Flow Highlights
|
FY 2006 |
FY 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$61.8 |
$43.2 |
43.1% |
|
Capital Expenditures |
$32.8 |
$23.4 |
40.6% |
|
Free Cash Flow |
$29.0 |
$19.9 |
46.0% |
Find out why Fools always follow the money.
Related Companies:
- Yahoo! (NASDAQ:YHOO)
- Amazon.com (NASDAQ:AMZN)
- News Corp. (NYSE:NWS)
Related Foolishness:
- The Best E-Commerce Stock for 2007: CNET Networks
- More Changes at CNET
- CNET Version 2.0
- CNET Takes Tech to the Next Level
CNET is a Rule Breakers pick. Both Yahoo! and Amazon.com are Stock Advisor recommendations. Whatever your investing style, the Motley Fool has a newsletter for you.
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