On Feb. 13, FoxHollow Technologies (NASDAQ:FOXH) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenues increased by 6.3%, primarily because of the contribution from recently launched MiniHawk and a research collaboration with Merck (NYSE:MRK).
  • The company reported a net loss of $4.9 million as a result of the inclusion of amortization and an increase in R&D and SG&A expenses.
  • FoxHollow's balance sheet is in good shape, with $167 million cash and no debt.
  • For fiscal 2007, the company expects high-single-digit revenue growth, with the top line in the range of $205 million-$215 million. Management expects the company to show a small profit on a GAAP basis.
  • FoxHollow is a four-star stock in CAPS, the Fool's community-based stock-rating service.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$44,519

$41,878

6.3%

Net Profit

($4,851)

($160)

N/A

EPS

($0.18)

($0.01)

N/A

Diluted Shares

27,571

23,642

16.6%



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

76.2%

70.9%

5.3

Operating Margin

(12.7%)

(1.7%)

(11.0)

Net Margin

(10.9%)

(0.4%)

(10.5)

*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.

$166,915

$59,915

178.6%

Accounts Rec.

$19,450

$21,831

(10.9%)

Inventory

$14,346

$15,607

(8.1%)



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$9,385

$7,072

32.7%

Long-Term Debt

$0

$0

0%



Learn the ways of the balance sheet.

Cash Flow Highlights

A statement of cash flows was not provided.

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Related Foolishness:

Merck is a Motley Fool Income Investor pick.

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