On Nov. 8, networking giant Cisco Systems
- Analysts always look at pro forma numbers, and excluding items such as stock-based compensation and amortization of purchased intangible assets, Cisco's net earnings hit $0.31 per diluted share to beat projections soundly.
- The acquisition of set-top box maker Scientific-Atlanta contributed $584 million of revenues this quarter, up from $490 million in the closest comparable year-ago quarter as an independent company. It's unclear how much of that translated to operating profits, but last year that line item was $82.3 million.
- To pay for Scientific-Atlanta, Cisco took on a hefty debt load. Note, however, that the company's generous cash account has also increased by almost the amount of debt assumed. Does Cisco have other big moves in mind?
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$7,900 |
$8,184 |
$6,550 |
24.9% |
|
Net Profit |
-- |
$1,608 |
$1,261 |
27.5% |
|
EPS |
$0.29 |
$0.26 |
$0.20 |
30% |
|
Diluted Shares |
-- |
6199 |
6340 |
(2.2%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
63.94% |
67.33% |
(3.39) |
|
Operating Margin |
24.33% |
24.76% |
(0.43) |
|
Net Margin |
19.65% |
19.25% |
0.40 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash and ST Invest. |
$19,520 |
$13,490 |
44.7% |
|
Accounts Rec. |
$3,091 |
$2,342 |
32% |
|
Inventory |
$1,477 |
$1,318 |
12.1% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$869 |
$721 |
20.5% |
|
Long-Term Debt |
$6,455 |
$0.0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$2,271 |
$1,402 |
62% |
|
Capital Expenditures |
$214 |
$215 |
(0.5%) |
|
Free Cash Flow |
$2,057 |
$1,187 |
73.3% |
Find out why Fools always follow the money.
Cash Management Checkup
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Days in Inventory |
43.4 |
55.0 |
(11.6) |
|
Days in Receivables |
36.9 |
33.0 |
3.8 |
|
Days Payables Outstanding |
26.7 |
30.6 |
(3.9) |
|
Cash Conversion Cycle |
53.6 |
57.4 |
(3.8) |
Read up on cash conversion metrics.
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At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here .
