Flash memory company Saifun (NYSE:SFUN) -- which made an IPO in November -- reported Q4 2005 numbers after hours, with revenue of $16.7M, gross profit of $12.9M, and operating earnings of $7.3M. Those give gross margin (gross profit/revenue) of 77%, OP margin (operating earnings/revenue) of 44%, and OOP margin (operating earnings/gross profit) of 57%.
All of those are contractions from Q3 2005 values of 83%, 58%, and 70%, respectively. Top line contraction in a growth company is never a good thing (it's about 7% Q/Q in this case - $16.7M/$17.9M). With that contraction we're not going to pay a premium for them, but might pick them up if they get discounted.
SFUN 6-month chart:
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