On Dec. 14, longtime software wrangler Novell
- If you back out restructuring expenses, stock-based compensation, and one-time charges the way most analysts do, you'd get non-GAAP earnings of $20 million or $0.06 per diluted share.
- Novell has amassed enough cash that you start to wonder what it plans to do with the riches. But don't expect it to pay back debt any time soon; Novell made $23 million off its investments this quarter, and those senior debentures with a low, low 0.5% coupon rate don't mature for another 17 years.
- Though GAAP-style earnings are in short supply, cash flows look healthy.
(Figures in millions, except per-share data; GAAP results from continuing operations)
Income Statement Highlights
Q4 2007 |
Q4 2006 |
Change |
|
---|---|---|---|
Sales |
$244.9 |
$233.8 |
4.8% |
Net Profit |
($17.9) |
$19.9 |
N/A |
EPS |
($0.05) |
$0.05 |
N/A |
Diluted Shares |
350.0 |
395.5 |
(11.5%) |
Get back to basics with the income statement.
Margin Checkup
Q4 2007 |
Q4 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
73.6% |
71.3% |
2.3 |
Net Margin |
(7.3%) |
8.5% |
(15.8) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q4 2007 |
Q4 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$1,857.6 |
$1,466.3 |
26.7% |
Accounts Rec. |
$208.3 |
$234.0 |
(11%) |
Liabilities |
Q4 2007 |
Q4 2006 |
Change |
---|---|---|---|
Accounts Payable |
$45.1 |
$44.4 |
1.6% |
Long-Term Debt |
$600 |
$600 |
0% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q4 2007 |
Q4 2006 |
Change |
|
---|---|---|---|
Cash From Ops. |
$76.9 |
$62.3 |
23.5% |
Capital Expenditures |
$7.8 |
$7.1 |
8.8% |
Free Cash Flow |
$69.1 |
$55.1 |
25.4% |
($10.0) |
$4.4 |
N/A |
Free cash flow is a Fool's best friend.
Competitive Context
Market Cap |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Microsoft |
$333,330 |
23.3 |
*** |
International Business Machines |
$144,730 |
15.5 |
*** |
Oracle |
$109,290 |
25.2 |
**** |
Red Hat |
$3,720 |
57.9 |
** |
Novell |
$2,460 |
N/A |
** |
Keep your partners close and the competition in your vest pocket.
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