Technical Communications (Technical Communications) Gross Margin % : -82.86% (As of Jun. 2023)

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What is Technical Communications Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Technical Communications's Gross Profit for the three months ended in Jun. 2023 was $-0.03 Mil. Technical Communications's Revenue for the three months ended in Jun. 2023 was $0.04 Mil. Therefore, Technical Communications's Gross Margin % for the quarter that ended in Jun. 2023 was -82.86%.

Warning Sign:

Technical Communications Corp gross margin has been in long-term decline. The average rate of decline per year is -41.1%.

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

TCCO' s Gross Margin % Range Over the Past 10 Years
Min: -65.54 Med: 48.16 Max: 66.87
Current: -65.54

During the past 13 years, the highest Gross Margin % of Technical Communications was 66.87%. The lowest was -65.54%. And the median was 48.16%.

TCCO's Gross Margin % is ranked worse than
99.47% of 2437 companies
in the Hardware industry
Industry Median: 24.45 vs TCCO: -65.54

Technical Communications had a gross margin of -82.86% for the quarter that ended in Jun. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Technical Communications was -41.10% per year.

Technical Communications Gross Margin % Historical Data

The historical data trend for Technical Communications'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.

Technical Communications Gross Margin % Chart

Technical Communications Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Gross Margin %

Get a 7-Day Free Trial

26.38

47.81

58.06

29.85

1.07

Technical Communications Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Gross Margin %	Get a 7-Day Free Trial															-24.66	-53.85	-22.13	-303.57	-82.86

Competitive Comparison of Technical Communications's Gross Margin %

For the Communication Equipment subindustry, Technical Communications'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.

Technical Communications's Gross Margin % Distribution in the Hardware Industry

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

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

Technical Communications Gross Margin % Calculation

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

Technical Communications's Gross Margin for the fiscal year that ended in Sep. 2022 is calculated as

Gross Margin % (A: Sep. 2022 )	=	Gross Profit (A: Sep. 2022 )	/	Revenue (A: Sep. 2022 )
	=	0	/	1.304
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.304 - 1.29)	/	1.304
	=	1.07 %

Technical Communications's Gross Margin for the quarter that ended in Jun. 2023 is calculated as

Gross Margin % (Q: Jun. 2023 )	=	Gross Profit (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	-0	/	0.035
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.035 - 0.064)	/	0.035
	=	-82.86 %

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.

Technical Communications (OTCPK:TCCO) 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

Technical Communications had a gross margin of -82.86% for the quarter that ended in Jun. 2023 => No sustainable 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.

Technical Communications Gross Margin % Related Terms

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Technical Communications (Technical Communications) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Technical Communications Corp (OTCPK:TCCO) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

100 Domino Drive, Concord, MA, USA, 01742-2892

Website

https://www.tccsecure.com

Technical Communications Corp designs, develops, manufactures, distributes, and markets communications security equipment. The company produces and supplies several custom-designed, special-purpose, and standard secure communications products for both domestic and international customers. Its products consist of voice, data, facsimile encryptors and video networks for military, government and corporate/industrial applications. In addition to product sales, it generates revenues from contract engineering services for certain government agencies, domestic and foreign, and commercial entities.

Executives

Ralph M Norwood	director	111 SOUTH WORCESTER STREET, NORTON MA 02766
Guild Carl H Jr	director, officer: CEO
Thomas E Peoples	director
Francisco F Blanco	director	1915 TOWNE CENTRE BLVD, SUITE 309, ANNAPOLIS MD 21401
Mitchell Briskin	director
Michael P Malone	officer: Chief Financial Officer
Paul D Sonkin	10 percent owner, other: see footnote #1	145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022
Hummingbird Value Fund Lp	10 percent owner, other: see footnote #1	145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022
Hummingbird Management Llc	10 percent owner, other: see footnote #1	145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022
Hummingbird Microcap Value Fund Lp	10 percent owner, other: see footnote #1	145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022
Hummingbird Capital Llc	10 percent owner, other: see footnote #1	145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022
Tarsier Nanocap Value Fund, Lp	10 percent owner, other: see footnote #1	C/O HUMMINGBIRD MANAGEMENT, LLC, 145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022
Hummingbird Concentrated Fund Lp	10 percent owner, other: see footnote #1	145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022
Robert T Lessard	director
Brown David A B	director