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Applied Micro Circuits (Applied Micro Circuits) Gross Margin % : 66.21% (As of Sep. 2016)


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What is Applied Micro Circuits Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Applied Micro Circuits's Gross Profit for the three months ended in Sep. 2016 was $27.7 Mil. Applied Micro Circuits's Revenue for the three months ended in Sep. 2016 was $41.8 Mil. Therefore, Applied Micro Circuits's Gross Margin % for the quarter that ended in Sep. 2016 was 66.21%.


The historical rank and industry rank for Applied Micro Circuits's Gross Margin % or its related term are showing as below:


AMCC's Gross Margin % is not ranked *
in the Semiconductors industry.
Industry Median: 28.265
* Ranked among companies with meaningful Gross Margin % only.

Applied Micro Circuits had a gross margin of 66.21% for the quarter that ended in Sep. 2016 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Applied Micro Circuits was 0.00% per year.


Applied Micro Circuits Gross Margin % Historical Data

The historical data trend for Applied Micro Circuits's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Applied Micro Circuits Gross Margin % Chart

Applied Micro Circuits Annual Data
Trend Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 57.21 57.55 60.59 58.00 56.22

Applied Micro Circuits Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 55.32 55.10 58.81 61.37 66.21

Competitive Comparison of Applied Micro Circuits's Gross Margin %

For the Semiconductors subindustry, Applied Micro Circuits's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Applied Micro Circuits's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Applied Micro Circuits's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Applied Micro Circuits's Gross Margin % falls into.



Applied Micro Circuits Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Applied Micro Circuits's Gross Margin for the fiscal year that ended in Mar. 2016 is calculated as

Gross Margin % (A: Mar. 2016 )=Gross Profit (A: Mar. 2016 ) / Revenue (A: Mar. 2016 )
=89.5 / 159.287
=(Revenue - Cost of Goods Sold) / Revenue
=(159.287 - 69.739) / 159.287
=56.22 %

Applied Micro Circuits's Gross Margin for the quarter that ended in Sep. 2016 is calculated as


Gross Margin % (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=27.7 / 41.779
=(Revenue - Cost of Goods Sold) / Revenue
=(41.779 - 14.119) / 41.779
=66.21 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange 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.


Applied Micro Circuits  (NAS:AMCC) Gross Margin % 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

Applied Micro Circuits had a gross margin of 66.21% for the quarter that ended in Sep. 2016 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Applied Micro Circuits Gross Margin % Related Terms

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Applied Micro Circuits (Applied Micro Circuits) Business Description

Traded in Other Exchanges
N/A
Address
Applied Micro Circuits Corp was incorporated and commenced operations in California in 1979 and was reincorporated in Delaware in 1987. The Company is engaged in providing silicon solutions for next-generation cloud infrastructure and data centers, as well as connectivity products for edge, metro and long haul communications equipment. Its products include the X-Gene ARM 64-bit Server on a Chip solution, or X-Gene. The X-Gene family of products targets existing and emerging hyperscale cloud, scientific and high-performance computing and enterprise applications. It also offers embedded computing products based on Power Architecture, sometimes referred to as PowerPC products. The Company's HeliX family of embedded products is based on the ARM Instruction Set Architecture. The Company's embedded processor products are deployed in applications such as control- and data-plane management, wireless access points, residential gateways, wireless base stations, storage controllers, network attached storage, network switches and routing products, and multi-function printers. The Company's connectivity portion provides high-speed, high-bandwidth, high-reliability communications products. Its connectivity products include devices for Optical Transport Network (OTN) equipment and physical layer (PHY) devices that transmit and receive signals in a very high speed serial format. Its embedded computing products are deployed in applications in markets such as control- and data-plane functionality, wireless access points, residential gateways, wireless base-stations, storage controllers, network attached storage, network switches and routing products, and multi-function printers. The Company holds approximately 348 issued patents which cover aspects of the design and architecture of its integrated circuit ("IC") and enterprise storage products. The Company's registered trademarks include AppliedMicro, AMCC, APM, X-Gene, Server on a Chip, Cloud Server, OTNsec, Arming the Cloud and Hard Silicon, among others. It is subject to a variety of federal, state and local governmental regulations related to the use, storage, discharge and disposal of toxic, volatile or otherwise hazardous chemicals that were used in its manufacturing process.
Executives
Duston Williams director C/O NUTANIX, INC., 1740 TECHNOLOGY DRIVE, SUITE 150, SAN JOSE CA 95110
Paul R Gray director 63 LA CUESTA ORINDA CA 94563
Martin S Mcdermut officer: Vice President and CFO C/O RESONANT INC. 10900 STONELAKE BLVD., SUITE 100, OFFICE 02-130, AUSTIN TX 78759
Karen M Rogge officer: Interim CFO APPLIED MICRO CIRCUITS CORP, 4555 GREAT AMERICA PARKWAY, SUITE 601, SANTA CLARA CA 95054
Shiva Kumar Natarajan officer: VP Corporate Controller 215 MOFFETT PARK DRIVE, SUNNYVALE CA 94089
Hk Desai director 26650 ALISO VIEJO PARKWAY, ALISO VIEJO CA 92656
Mark Wadlington officer: VP Worldwide Sales 215 MOFFETT PARK DRIVE, SUNNYVALE CA 94089
Donald A Colvin director ONE CAESARS PALACE DRIVE, LAS VEGAS NV 89109
Julie Sullivan director 6290 SEQUENCE DRIVE SAN DIEGO CA 92121
Hooshmand Kambiz officer: President & CEO 6290 SEQUENCE DRIVE, SAN DIEGO CA 92121
David B Wright director C/O EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Harvey White director
Johnson Franklin P Jr director
David Rickey director, officer: COB and CEO
Stephen M Smith officer: CFO