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Radisys (Radisys) Gross Margin % : 43.44% (As of Sep. 2018)


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What is Radisys Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Radisys's Gross Profit for the three months ended in Sep. 2018 was $11.7 Mil. Radisys's Revenue for the three months ended in Sep. 2018 was $27.0 Mil. Therefore, Radisys's Gross Margin % for the quarter that ended in Sep. 2018 was 43.44%.


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


RSYS's Gross Margin % is not ranked *
in the Hardware industry.
Industry Median: 24.5
* Ranked among companies with meaningful Gross Margin % only.

Radisys had a gross margin of 43.44% for the quarter that ended in Sep. 2018 => Durable competitive advantage

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


Radisys Gross Margin % Historical Data

The historical data trend for Radisys'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.

Radisys Gross Margin % Chart

Radisys Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.96 26.88 28.25 26.41 15.53

Radisys Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 4.15 4.17 26.61 37.49 43.44

Competitive Comparison of Radisys's Gross Margin %

For the Computer Hardware subindustry, Radisys'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.


Radisys's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Radisys's Gross Margin % distribution charts can be found below:

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



Radisys Gross Margin % Calculation

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

Radisys's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )=Gross Profit (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=20.8 / 133.768
=(Revenue - Cost of Goods Sold) / Revenue
=(133.768 - 112.998) / 133.768
=15.53 %

Radisys's Gross Margin for the quarter that ended in Sep. 2018 is calculated as


Gross Margin % (Q: Sep. 2018 )=Gross Profit (Q: Sep. 2018 ) / Revenue (Q: Sep. 2018 )
=11.7 / 27.023
=(Revenue - Cost of Goods Sold) / Revenue
=(27.023 - 15.283) / 27.023
=43.44 %

* 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.


Radisys  (NAS:RSYS) 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

Radisys had a gross margin of 43.44% for the quarter that ended in Sep. 2018 => 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.


Radisys Gross Margin % Related Terms

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


Radisys (Radisys) Business Description

Traded in Other Exchanges
N/A
Address
Radisys Corp is a provider of computer systems in the United States. Its products include hyper-scale software-defined infrastructure, service aware traffic distribution platforms, real-time media processing engines and wireless access technologies. Its products and services fall within two operating segments: Software-Systems and Hardware Solutions. Software-Systems products are targeted at delivering differentiated solutions for service providers, specifically within telecommunications, to enable their deployment of next-generation networks and technologies. Hardware Solutions include open-standards-based DCEngine product family as well as its legacy embedded products portfolio which accounts for most of the company's revenues.
Executives
Stephen L Domenik director C/O SEVIN ROSEN FUNDS, 13455 NOEL RD #1670, DALLAS TX 75240
C Scott Gibson director PMB 316, PO BOX 30,000, JACKSON WY 83002
Pesquidoux Hubert De director TEKELEC, 5200 PARAMOUNT PARKWAY, MORRISVILLE NC 27560
Lorene K Steffes director INTL BUS MACHINES CORP OFF 1S 501, 1133 WESTCHESTER AVE, WHITE PLAINS NY 10604
Allen L. Muhich officer: CFO 250 TECHNOLOGY PARK, LAKE MARY FL 32746
David Nierenberg 10 percent owner 19605 NE 8TH STREET, CAMAS WA 98607
Nierenberg Investment Management Co 10 percent owner 19605 NE 8TH ST, CAMAS WA 98607
D3 Offshore Fund Lp 10 percent owner 19605 NE 8TH ST CAMAS WA 98607
Nierenberg Investment Management Offshore Inc 10 percent owner 19605 NE 8TH STREET CAMAS WA 98607
Kevin C Melia director
D3 Family Canadian Fund, L.p. 10 percent owner 19605 NE 8TH STREET, CAMAS WA 98607
D3 Family Bulldog Fund Lp 10 percent owner 19605 NE 8TH STREET CAMAS WA 98607
D3 Family Fund Lp 10 percent owner 19605 NE 8TH STREET CAMAS WA 98607
Amit Agarwal officer: VP & GM, Software & Solutions 5435 NE DAWSON CREEK DR., HILLSBORO OR 97124
Richard J Faubert director 14242 S CANYON DR, PHOENIX AZ 85048

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