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Sycamore Networks Inc (OTCPK:SCMR)
Gross Profit
$22.23 Mil (TTM As of Oct. 2014)

Sycamore Networks Inc's gross profit for the three months ended in Oct. 2014 was $0.00 Mil. Sycamore Networks Inc's gross profit for the trailing twelve months (TTM) ended in Oct. 2014 was $22.23 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Sycamore Networks Inc's gross profit for the three months ended in Oct. 2014 was $0.00 Mil. Sycamore Networks Inc's revenue for the three months ended in Oct. 2014 was $0.00 Mil. Therefore, Sycamore Networks Inc's Gross Margin for the quarter that ended in Oct. 2014 was %.

Sycamore Networks Inc had a gross margin of % for the quarter that ended in Oct. 2014 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin of Sycamore Networks Inc was 57.53%. The lowest was -134.30%. And the median was 44.65%.


Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Sycamore Networks Inc's Gross Profit for the fiscal year that ended in Jul. 2012 is calculated as

Gross Profit (A: Jul. 2012 )=Revenue - Cost of Goods Sold
=57.285 - 24.331
=32.95

Sycamore Networks Inc's Gross Profit for the quarter that ended in Oct. 2014 is calculated as

Gross Profit (Q: Oct. 2014 )=Revenue - Cost of Goods Sold
=0 - 0
=0.00

Sycamore Networks Inc Gross Profit for the trailing twelve months (TTM) ended in Oct. 2014 was 9.62 (Jul. 2012 ) + 7.161 (Oct. 2012 ) + 5.449 (Jan. 2013 ) + 0 (Oct. 2014 ) = $22.23 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Sycamore Networks Inc's Gross Margin for the quarter that ended in Oct. 2014 is calculated as

Gross Margin (Q: Oct. 2014 )=Gross Profit (Q: Oct. 2014 ) / Revenue (Q: Oct. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=0.00 / 0
= %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Sycamore Networks Inc had a gross margin of % for the quarter that ended in Oct. 2014 => No sustainable competitive advantage


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Sycamore Networks Inc Annual Data

Jul03Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12
Gross_Profit 3.0413.4031.0143.4567.8452.9328.8937.6626.1832.95

Sycamore Networks Inc Quarterly Data

Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12Jan13Oct14
Gross_Profit 7.046.987.339.127.756.479.627.165.450.00
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