On Oct. 25, security software maker Symantec (NASDAQ:SYMC) released second-quarter earnings for the period ended Sept. 30.

  • CEO John W. Thompson noted that the quarter "met the low end of our expectations," but he saw no problem in achieving full-year targets.
  • The consumer side of Symantec picked up with a 12% increase year over year.
  • During Q2 Symantec added 280 more contracts worldwide under its belt, with 76% of those being multiple product deals.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$1,293

$1,262

$1,056

19.5%

Net Profit*

--

$123

($251)

N/A

EPS

$0.27

$0.12

($0.21)

N/A

Diluted Shares

--

988

1,172

(15.7%)

*Net Profit does not include income from discontinued operations

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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

75.89%

70.31%

5.58

Operating Margin

10.80%

(24.47%)

35.27

Net Margin

9.78%

(23.80%)

33.58

*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.

$2,954

$4,433

(33.4%)

Accounts Rec.

$562

$444

26.5%

Inventory

$40

$14

188.4%


Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$167

$163

2.6%

Long-Term Debt

$2,100

$0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

Symantec must have caught a computer virus, because it forgot to include a cash flow statement.

Find out why Fools always follow the money.

Related Companies:

  • Computer Associates
  • McAfee (NYSE:MFE)
  • Microsoft (NASDAQ:MSFT)

Related Foolishness:

Symantec and Microsoft are Motley Fool Inside Value recommendations. To find out why, and to see other companies trading at great prices, check out the Inside Value newsletterfree for 30 days.

McAfee was a former Stock Advisor selection.

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