This excerpt taken from the EBAY 8-K filed Oct 18, 2006.
eBAY INC. ANNOUNCES THIRD QUARTER 2006 FINANCIAL RESULTS
Company Reports Record Q3 Net Revenues of $1.449 Billion
Delivers Q3 GAAP Diluted EPS of $0.20 and Non-GAAP Diluted EPS of $0.26
Company Repurchases $667 Million of Common Stock
San Jose, CA, October 18, 2006 eBay Inc. (Nasdaq: EBAY; www.ebay.com) reported financial results for its third quarter ended September 30, 2006.
eBay reported record consolidated Q3-06 net revenues of $1.449 billion, representing a growth rate of 31% year over year. GAAP operating income was $339 million, a decrease of 5% year over year, and represented 23% of net revenues. Excluding stock-based compensation of $74 million, operating income would have increased 16% year over year to $413 million, or 28% of net revenues. Non-GAAP operating income in Q3-06 was $464 million, representing a 32% operating margin and an 18% year-over-year increase.
GAAP net income in Q3-06 was $281 million, or $0.20 earnings per diluted share, an increase of 10% year over year. Excluding stock-based compensation of $51 million (net of tax effects), net income increased 30% year over year to $332 million, or $0.23 earnings per diluted share. Non-GAAP net income in Q3-06 was $367 million, or $0.26 earnings per diluted share, a 31% year-over-year increase.
The company repurchased approximately 24 million shares of its common stock at a total cost of $667 million during the quarter, completing one-third of its previously announced stock repurchase program.
Q3 was a very good quarter for the company and a continuation of the strong earnings growth we delivered throughout the first half of the year, said Meg Whitman, President and CEO of eBay Inc. As our results demonstrate, we are executing on our strategy to grow our Marketplaces, PayPal and Skype businesses individually and collectively to deliver greater value to our community of users and to our shareholders.