GURUFOCUS.COM » STOCK LIST » Technology » Software » Epiq Systems Inc (NAS:EPIQ) » Definitions » Gross Margin %

Epiq Systems (Epiq Systems) Gross Margin % : 47.80% (As of Jun. 2016)


View and export this data going back to 1997. Start your Free Trial

What is Epiq Systems Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Epiq Systems's Gross Profit for the three months ended in Jun. 2016 was $67.3 Mil. Epiq Systems's Revenue for the three months ended in Jun. 2016 was $140.7 Mil. Therefore, Epiq Systems's Gross Margin % for the quarter that ended in Jun. 2016 was 47.80%.


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


EPIQ's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 41.71
* Ranked among companies with meaningful Gross Margin % only.

Epiq Systems had a gross margin of 47.80% for the quarter that ended in Jun. 2016 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Epiq Systems was 0.00% per year.


Epiq Systems Gross Margin % Historical Data

The historical data trend for Epiq Systems'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.

Epiq Systems Gross Margin % Chart

Epiq Systems Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 60.21 53.62 47.68 48.17 47.75

Epiq Systems Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 45.52 47.29 49.88 45.36 47.80

Competitive Comparison of Epiq Systems's Gross Margin %

For the Information Technology Services subindustry, Epiq Systems'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.


Epiq Systems's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Epiq Systems's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Epiq Systems's Gross Margin % falls into.



Epiq Systems Gross Margin % Calculation

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

Epiq Systems's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin % (A: Dec. 2015 )=Gross Profit (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=259.9 / 544.205
=(Revenue - Cost of Goods Sold) / Revenue
=(544.205 - 284.35) / 544.205
=47.75 %

Epiq Systems's Gross Margin for the quarter that ended in Jun. 2016 is calculated as


Gross Margin % (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=67.3 / 140.744
=(Revenue - Cost of Goods Sold) / Revenue
=(140.744 - 73.466) / 140.744
=47.80 %

* 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.


Epiq Systems  (NAS:EPIQ) 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

Epiq Systems had a gross margin of 47.80% for the quarter that ended in Jun. 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.


Epiq Systems Gross Margin % Related Terms

Thank you for viewing the detailed overview of Epiq Systems's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Epiq Systems (Epiq Systems) Business Description

Traded in Other Exchanges
N/A
Address
Epiq Systems Inc was incorporated in the State of Missouri on July 13, 1988, and on July 15, 1988 acquired all of the assets of an unrelated predecessor corporation. The Company is a provider of integrated technology solutions for the legal profession. The Company's solutions streamline the administration of bankruptcy, litigation, financial transactions and regulatory compliance matters. It offers managed technology solutions for eDiscovery, document review, legal notification, claims administration and controlled disbursement of funds. Its clients include law firms, corporate legal departments, bankruptcy trustees, government agencies, mortgage processors, and financial institutions. The Company's business is organized into two reportable segments: the Technology segment and the Bankruptcy and Settlement Administration segment. The Company's Technology segment provides eDiscovery managed services and technology solutions comprised of consulting, collections and forensics, processing, search and review, production of documents and document review services to companies and the litigation departments of law firms. The Company's eDataMatrix software analyzes filters, deduplicates and produces documents for review. The Company's customers are corporations that use its products and services cooperatively with their legal counsel to manage the eDiscovery process for litigation, investigations, anti-trust filings and regulatory matters. Produced documents are made available mainly through a hosted environment utilizing its proprietary software DocuMatrix and third-party software which allows for efficient attorney review and data requests. Bankruptcy and Settlement Administration segment provides managed services and technology solutions that address the needs of its customers with respect to litigation, claims and project administration, compliance matters, controlled disbursements, corporate restructuring, bankruptcy and class action proceedings. The Company's Bankruptcy and Settlement Administration segment provides managed services and technology solutions that address the needs of its customers with respect to litigation, claims and project administration, compliance matters, controlled disbursements, corporate restructuring, bankruptcy and class action proceedings. The Company's Technology segment, eDiscovery competes with companies such as, Kroll Ontrack, FTI Consulting, Inc., Huron Consulting Group Inc., The Dolan Company, Symantec Corporation, Recommind, Inc., Xerox and Autonomy. The Company's Bankruptcy and Settlement Administration segment, bankruptcy services competes with companies such as, Bankruptcy Management Solutions, Inc., which is a provider in Chapter 7 bankruptcy market. While in Chapter 11 bankruptcy market, the Company competes with Kurtzman Carson Consultants LLC and The Garden City Group, Inc. In Chapter 13 market, the Company's main competitor is Bankruptcy Software Specialists, LLC. The Company is subject to
Executives
Gregory M Share director THREE FIRST NATIONAL PLZ, SUITE 3800, CHICAGO IL 60602
Tjon Sien Fat Karin - Joyce officer: EVP & CFO 501 KANSAS AVENUE, KANSAS CITY KS 66105
Kevin L Robert director 501 KANSAS AVENUE, KANSAS CITY KS 66105
Terry Matlack director 233 W 47TH ST, KANSAS CITY MO 64112

Epiq Systems (Epiq Systems) Headlines