Gross Margin % is calculated as gross profit divided by its revenue. Sequenom's Gross Profit for the
three
months ended in Jun. 2016 was $15.5 Mil. Sequenom's Revenue for the
three
months ended in Jun. 2016 was $29.3 Mil. Therefore, Sequenom's Gross Margin % for the quarter that ended in Jun. 2016 was 53.04%.
The historical rank and industry rank for Sequenom's Gross Margin % or its related term are showing as below:
SQNM's Gross Margin % is not ranked *
in the Biotechnology industry.
Industry Median: 59.655 * Ranked among companies with meaningful Gross Margin % only.
Sequenom had a gross margin of 53.04% for the quarter that ended in Jun. 2016 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sequenom was 0.00% per year.
Sequenom Gross Margin % Historical Data
The historical data trend for Sequenom'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.
Competitive Comparison of Sequenom's Gross Margin %
For the Biotechnology subindustry, Sequenom'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.
Sequenom's Gross Margin % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Sequenom's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sequenom's Gross Margin % falls into.
* 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.
Sequenom (NAS:SQNM) 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
Sequenom had a gross margin of 53.04% 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.
Sequenom Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sequenom's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sequenom Inc was incorporated in 1994 under the laws of the State of Delaware. It is a life science company providing revolutionary genomic and genetic analysis solutions for the molecular diagnostic and clinical research markets. It develop and commercialize molecular diagnostics testing services that target and serve molecular diagnostics markets, and also develop and commercialize research use genetic analysis products and services that target and serve discovery and clinical research markets. It offers its services and products in the United States and international emphasis in countries like European and Asia-Pacific regions. The Company operates in two operating segments; Sequenom Laboratories and Sequenom Bioscience. Sequenom Laboratories provides molecular based, laboratory developed tests, or LDTs, with a focus principally on prenatal diseases and conditions and ophthalmological diseases and conditions. Sequenom Bioscience provides technology and research tools for genetic analysis and applications in translational research, clinical research, pharmacogenomics, oncology, and agricultural genomics. The Company's competitors include; Ariosa Diagnostics, Inc., Beijing Genomics Institute, Cellscape Corp., Celula Inc., Ikonysis, Inc., Kellbenx, Inc., Laboratory Corporation of America Holdings, Inc., Natera, Perkin Elmer, Inc., Quest Laboratories, Verinata and others. Its patent portfolio, including in-licensed patent rights, includes approximately 638 issued or allowed patents in the United States and other industrial nations throughout the world. Its prenatal diagnostic patent portfolio includes exclusive rights to numerous in-licensed issued patents. The Company is subject to federal, state and local laws and regulations governing the use, storage, handling and disposal of such materials and chemicals, as well as certain waste products.
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