On Nov. 7, education software provider Blackboard (NASDAQ:BBBB) released third-quarter earnings for the period ended Sept. 30.

  • Revenues increased 40% to $50.4 million, driven by annual license fees.
  • The acquisition of WebCT and stock-options expensing were part of the $0.17-per-share loss. However, even the pro-forma gain of $0.02 per share doesn't compare well to the same period last year, which saw a $0.25-per-share profit.
  • Year-to-date free cash flow also dropped, down 86% to $2.4 million.
  • Management raised Q4 and full-year guidance by a modest amount.
  • This Hidden Gems recommendation receives four out of five stars from our Motley Fool CAPS players.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$50,354.0

$35,927.0

40.2%

Net Profit

($4,775.0)

$7,269.0

N/A

EPS

($0.17)

$0.25

N/A

Diluted Shares

27,922.9

28,829.8

(3.1%)



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

68.2%

97.2%

(29.0)

Operating Margin

(10.1%)

18.4%

(28.5)

Net Margin

(9.5%)

20.2%

(29.7)

*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.

$37,045

$122,617

(69.8%)

Accounts Rec.

$61,360

$33,200

84.8%

Inventory

$2,443

$2,053

19.0%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$153

$1,225

(87.5%)

Long-Term Debt

$42,411

$0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$10,584

$23,366

(54.7%)

Capital Expenditures

$8,188

$6,696

22.3%

Free Cash Flow

$2,396

$16,670

(85.6%)



Find out why Fools always follow the money.

Related Companies:

  • eCollege.com (NASDAQ:ECLG)

Related Foolishness:

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