On June 28, BlackBerry maker Research In Motion
- Yowza! That's one spicy quarter. RIM managed to beat its own estimates by a very comfortable margin on both the top and bottom lines, despite a significant slip in gross margin.
- Cost controls and aggressive share buybacks neutralized that threat before it reached the net income line. Fiscal discipline is always good practice.
- Conservative accounting is another Foolish plus. In this case, that meant cash flow figures zooming past the GAAP income numbers, on the back of massive improvements in working capital balances.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2008 |
Q1 2007 |
Change |
|
|---|---|---|---|
|
Sales |
$1,081.9 |
$613.1 |
76.5% |
|
Net Profit |
$223.2 |
$128.8 |
73.2% |
|
EPS |
$1.17 |
$0.67 |
74.6% |
|
Diluted Shares |
190.4 |
192.1 |
(0.9%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2008 |
Q1 2007 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
51.8% |
55.1% |
(3.3) |
|
Operating Margin |
26.2% |
26.4% |
(0.2) |
|
Net Margin |
20.6% |
21.0% |
(0.4) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,168.6 |
$723.1 |
61.6% |
|
Accounts Rec. |
$718.4 |
$393.7 |
82.5% |
|
Inventory |
$258.7 |
$134.4 |
92.4% |
|
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Accounts Payable |
$189.9 |
$76.0 |
149.8% |
|
Long-Term Debt |
$6.9 |
$7.0 |
(1.1%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2008 |
Q1 2007 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$225.3 |
$99.0 |
127.5% |
|
Capital Expenditures |
$66.8 |
$44.1 |
51.5% |
|
Free Cash Flow |
$158.5 |
$55.0 |
188.5% |
|
$194.2 |
$111.6 |
74.0% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: Research In Motion, in Motion
- Quick Take: Who's Afraid of the iPhone?
- Cuts Like a Razr
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.
At the time of publication, Anders Bylund had no position in any company mentioned; nor did he own a cell phone of any kind. Fool rules are here.
