On Oct. 26, enterprise computing specialist Sun Microsystems
- The cash balance has certainly improved, but not by positive cash flows from operations. Over the past year, Sun has converted $4.2 billion of its long-term investments to cash, leaving only $700 million on that line. At least the company hasn't resorted to large secondary offerings.
- $427 million of new revenue only resulted in a $67 million improvement on the bottom line. Not much blood dripping from this stone.
- On the bright side, Sun is converting its inventories into cash faster than last year, thanks to small improvements in all three components of the cash conversion metric. Pinch a penny, save a pound.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$3,200 |
$3,189.0 |
$2,726.0 |
17% |
|
Net Profit |
-- |
-$56.0 |
-$123.0 |
54.5% |
|
EPS |
($0.04) |
($0.02) |
($0.04) |
50% |
|
Diluted Shares |
3497.0 |
3407.0 |
2.6% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
43.52% |
44.09% |
(0.57) |
|
Operating Margin |
(2.01%) |
(5.03%) |
3.02 |
|
Net Margin |
(1.76%) |
(4.51%) |
2.75 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$3,971.0 |
$2,501.0 |
58.8% |
|
Accounts Rec. |
$2,036.0 |
$2,087.0 |
(2.4%) |
|
Inventory |
$584.0 |
$551.0 |
6% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,292.0 |
$1,091.0 |
18.4% |
|
Long-Term Debt |
$582.0 |
$603.0 |
(3.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$157.0 |
$224.0 |
(29.9%) |
|
Capital Expenditures |
($160.0) |
$48.0 |
N/A |
|
Free Cash Flow |
$317.0 |
$176.0 |
80.1% |
Find out why Fools always follow the money.
Cash Conversion Checkup
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Days in Inventory |
28.1 |
29.0 |
(0.9) |
|
Days in Receivables |
69.8 |
71.3 |
(1.5) |
|
Days Payables Outstanding |
68.4 |
66.7 |
1.7 |
|
Cash Conversion Cycle |
29.5 |
33.6 |
(4.1) |
Read up on cash conversion metrics.
Related Companies:
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Microsoft
(NASDAQ:MSFT) -
Cray
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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.
Microsoft is a Motley Fool Inside Value selection. Pick up a free 30-day trial to our bargain-hunting service and join Philip Durell and his merry Fool in their hunt for outstanding sales on great stocks.
At the time of publication, Fool contributor Anders Bylund had positions in none of these stocks. Fool rules are here .
