InSite Vision (InSite Vision) Operating Income : $-12.39 Mil (TTM As of Jun. 2015)

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What is InSite Vision Operating Income?

InSite Vision's Operating Income for the three months ended in Jun. 2015 was $-5.89 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2015 was $-12.39 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. InSite Vision's Operating Income for the three months ended in Jun. 2015 was $-5.89 Mil. InSite Vision's Revenue for the three months ended in Jun. 2015 was $0.39 Mil. Therefore, InSite Vision's Operating Margin % for the quarter that ended in Jun. 2015 was -1,502.55%.

InSite Vision's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. InSite Vision's annualized ROC % for the quarter that ended in Jun. 2015 was -213.45%. InSite Vision's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2015 was -1,595.13%.

InSite Vision Operating Income Historical Data

The historical data trend for InSite Vision's Operating Income 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.

InSite Vision Operating Income Chart

InSite Vision Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Operating Income

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0.66

1.02

-0.68

13.11

-7.22

InSite Vision Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Operating Income	Get a 7-Day Free Trial															2.26	-2.91	-3.09	-0.50	-5.89

InSite Vision Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $-12.39 Mil.

InSite Vision (OTCPK:INSV) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

InSite Vision's annualized ROC % for the quarter that ended in Jun. 2015 is calculated as:

	ROC % (Q: Jun. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2015 )	+	Invested Capital (Q: Jun. 2015 ))	/ count )
=	-23.56 * ( 1 - 0% )	/	( (7.862	+	14.213)	/ 2 )
=	-23.56	/	11.0375
=	-213.45 %

where

	Invested Capital		(Q: Mar. 2015 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4.098	-	4.011	-	( 1.05	-	max(0, 10.355	-	2.58	+	1.05	))
=	7.862

	Invested Capital		(Q: Jun. 2015 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4.657	-	4.654	-	( 1.755	-	max(0, 17.431	-	3.221	+	1.755	))
=	14.213

Note: The Operating Income data used here is four times the quarterly (Jun. 2015) data.

2. Joel Greenblatt's definition of Return on Capital:

InSite Vision's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2015 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2015 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2015		Q: Jun. 2015
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-23.56	/	( ( (1.518 + max(-3.626, 0))	+	(1.436 + max(-4.71, 0)) )	/	2 )
=	-23.56	/	( ( 1.518	+	1.436 )	/	2 )
=	-23.56	/	1.477
=	-1,595.13 %

where Working Capital is:

	Working Capital		(Q: Mar. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.363	+	0	+	1.167)	-	(4.011	+	0	+	1.145)
=	-3.626

	Working Capital		(Q: Jun. 2015 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0.357	+	0	+	1.109)	-	(4.654	+	0	+	1.522)
=	-4.71

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2015) EBIT data.

3. Operating Income is also linked to Operating Margin %:

InSite Vision's Operating Margin % for the quarter that ended in Jun. 2015 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2015 )	/	Revenue (Q: Jun. 2015 )
	=	-5.89	/	0.392
	=	-1,502.55 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

InSite Vision Operating Income Related Terms

Thank you for viewing the detailed overview of InSite Vision's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

InSite Vision (InSite Vision) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » InSite Vision Inc (OTCPK:INSV) » Definitions » Operating Income

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Address

Website

http://www.insitevision.com

InSite Vision Inc was incorporated in 1986 as a California Corporation and reincorporated in Delaware in 1987. The Company is an ophthalmic product development company committed to advancing ophthalmic pharmaceutical products to address unmet eye care needs. The Company completed its initial public offering on October 18, 1993. The Company's current portfolio of ophthalmic pharmaceutical products is based on its proprietary DuraSite drug delivery technology. The Company's DuraSite sustained drug delivery technology is a proven, patented synthetic polymer-based formulation designed to extend the residence time of a drug relative to conventional topical therapies. It enables topical delivery of a solution, gel or suspension and could be customized for delivering a variety of potential drug candidates. The Company has focused its research, development and commercial support efforts on the following topical products formulated with its DuraSite drug delivery technology. AzaSite or azithromycin ophthalmic solution 1% is a DuraSite formulation of azithromycin developed as a broad spectrum ocular antibiotic and approved by the U.S. Food and Drug Administration in April 2007 to treat bacterial conjunctivitis. Additional indications are being pursued by Inspire Pharmaceuticals for this product. AzaSite was commercially launched in the United States by Inspire Pharmaceuticals in August 2007. DexaSite is a DuraSite formulation of dexamethasone in development for the treatment of ocular inflammation. In November 2011, it initiated a Phase 3 clinical trial for this product candidate in blepharitis and completed patient enrollment in the clinical trial in September 2012. BromSite is a DuraSite formulation of bromfenac in development for the prevention of post-operative inflammation and eye pain. It initiated a Phase 1/2 clinical trial for this product candidate in August 2010 and received positive top-line results from this study in the first quarter of 2011, which demonstrated the efficacy and safety of BromSite. DuraSite 2 is a next-generation enhanced drug delivery system, which is designed to provide a broad platform for developing superior ophthalmic therapeutics. DuraSite 2 is based on the original DuraSite technology, and incorporates a cationic polymer to achieve sustained and enhanced ocular delivery of drugs. ISV-101 is a DuraSite formulation with a low concentration of bromfenac for the treatment of dry eye disease. The Company is subject to regulation by numerous governmental authorities in the United States and other countries.

Executives

Louis Drapeau	officer: Vice President and CFO	C/O BIOMARIN PHARMACEUTICAL INC., 371 BEL MARIN KEYS BLVD., SUITE 210, NOVATO CA 94949
Brian Levy	director
Anthony J Yost	director	C/O INSITE VISION, INC., 965 ATLANTIC AVENUE, ALAMEDA CA 94501
Timothy Mcinerney	director
Craig A Tooman	director
Coliseum Capital Management, Llc	10 percent owner	105 ROWAYTON AVENUE, ROWAYTON CT 06853
Timothy P Lynch	director	919 NW BOND STREET, SUITE 204, BEND OR 97703
Rick D Anderson	director	3600 N CAPITAL OF TEXAS HWY, SUITE B180, AUSTIN TX 78746
Jon S Saxe	director	FIRST HORIZON PHARMACEUTICAL CORP, 660 HEMBREE PKWY STE 106, ROSWELL GA 30076
Francis Wen-hou Chen	director	1821 JONES STREET, SAN FRANCISCO CA 94109
Pinto Tv Gp Co Llc	10 percent owner	3600 N CAPITAL OF TEXAS HWY, SUITE B180, AUSTIN TX 78746
Matthew S Crawford	10 percent owner	3600 N CAPITAL OF TEXAS HWY, SUITE B180, AUSTIN TX 78746
Pfizer Inc	10 percent owner	66 HUDSON BOULEVARD EAST, NEW YORK NY 10001-2192

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