On Feb. 7, medical device maker Aspect Medical Systems (NASDAQ:ASPM) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenues increased 11%, led by strong unit volume growth in sensor equipment.
  • Gross margins declined by 150 basis points as a result of an increase in manufacturing overhead costs related to a new facility and the addition of a new sensor line.
  • EPS increased by a whopping 915%, principally due to income-tax benefits of $28.2 million gained during the quarter.
  • Interest income was boosted by significant investments in cash equivalents and marketable securities.
  • For the first quarter of 2007, the management expects total revenue to be in the range of $22.6 million to $23.6 million and product revenue growth of 5% to 10%, while it predicts EPS will decline by $0.02 to $0.04.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$23,961

$21,577

11.0%

Net Profit

$30,610

$3,091

890.3%

EPS

$1.32

$0.13

915.4%

Diluted Shares

23,136

24,476

(5.5%)



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

74.6%

76.0%

(1.5)

Operating Margin

6.2%

11.3%

(5.1)

Net Margin

127.8%

14.3%

113.4

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$56,028

$43,773

28.0%

Accounts Rec.

$12,486

$11,717

6.6%

Inventory

$6,501

$5,117

27.0%

Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$10,353

$12,589

(17.8%)

Long-Term Debt

$0

$0

0%



Learn the ways of the balance sheet.

Cash Flow Highlights
No data was provided. Boo!

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Related Companies:

  • Medis Technologies (NASDAQ:MDTL)
  • Stereotaxis (NASDAQ:STXS)
  • Micrus Endovascular (NASDAQ:MEND)
  • Hansen Medical (NASDAQ:HNSN)
  • Spectranetics (NASDAQ:SPNC)

Related Foolishness:

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