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NeurogesX (NeurogesX) Operating Income : $-39.16 Mil (TTM As of Dec. 2011)


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What is NeurogesX Operating Income?

NeurogesX's Operating Income for the six months ended in Dec. 2011 was $-39.16 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2011 was $-39.16 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. NeurogesX's Operating Income for the six months ended in Dec. 2011 was $-39.16 Mil. NeurogesX's Revenue for the six months ended in Dec. 2011 was $11.50 Mil. Therefore, NeurogesX's Operating Margin % for the quarter that ended in Dec. 2011 was -340.40%.

NeurogesX'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. NeurogesX's annualized ROC % for the quarter that ended in Dec. 2011 was -307.49%. NeurogesX's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2011 was -5,775.22%.


NeurogesX Operating Income Historical Data

The historical data trend for NeurogesX'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.

NeurogesX Operating Income Chart

NeurogesX Annual Data
Trend Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -32.78 -26.29 -21.65 -39.81 -39.16

NeurogesX Semi-Annual Data
Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only -32.78 -26.29 -21.65 -39.81 -39.16

NeurogesX 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.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2011 was $-39.16 Mil.

* 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.


NeurogesX  (OTCPK:NGSX) Operating Income Explanation

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

NeurogesX's annualized ROC % for the quarter that ended in Dec. 2011 is calculated as:

ROC % (Q: Dec. 2011 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2010 ) + Invested Capital (Q: Dec. 2011 ))/ count )
=-39.156 * ( 1 - % )/( (11.231 + 14.237)/ 2 )
=-39.156/12.734
=-307.49 %

where

Note: The Operating Income data used here is one times the annual (Dec. 2011) data.

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

NeurogesX's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2011 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2011 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2010  Q: Dec. 2011
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-39.156/( ( (0.809 + max(-12.058, 0)) + (0.547 + max(-10.924, 0)) )/ 2 )
=-39.156/( ( 0.809 + 0.547 )/ 2 )
=-39.156/0.678
=-5,775.22 %

where Working Capital is:

Working Capital(Q: Dec. 2010 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.607 + 0.786 + 1.372) - (7.004 + 7.819 + 3.5527136788005E-15)
=-12.058

Working Capital(Q: Dec. 2011 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1.166 + 0.654 + 1.524) - (5.932 + 8.336 + 0)
=-10.924

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Dec. 2011) EBIT data.

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

NeurogesX's Operating Margin % for the quarter that ended in Dec. 2011 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2011 )/Revenue (Q: Dec. 2011 )
=-39.156/11.503
=-340.40 %

* 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.

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.


NeurogesX Operating Income Related Terms

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


NeurogesX (NeurogesX) Business Description

Traded in Other Exchanges
N/A
Address
NeurogesX, Inc. was incorporated in California as Advanced Analgesics, Inc. on May 28, 1998 and changed its name to NeurogesX, Inc. in September 2000. In February 2007, it reincorporated into Delaware. It is a biopharmaceutical company focused on developing and commercializing novel pain management therapies. It is assembling a portfolio of pain management product candidates based on known chemical entities to develop innovative new therapies that might offer substantial advantages over currently available treatment options. The Company's initial focus is on the management of chronic peripheral neuropathic pain conditions. The Company's first commercial product, Qutenza, the first prescription strength capsaicin product is a dermal delivery system designed to treat certain neuropathic pain conditions and was approved by the U.S, Food and Drug Administration, or FDA in November 2009 for the management of neuropathic pain associated with postherpetic neuralgia, or PHN. It is currently preparing to commercialize Qutenza in the United States with its own sales force and that Qutenza would be commercially available in the United States in the first half of 2010. Qutenza is a non-narcotic analgesic formulated in a localized treatment patch containing an 8% concentration of synthetic capsaicin. Capsaicin is released from the patch and, with the aid of penetration enhancers, penetrates into the skin during application without significant absorption of capsaicin into the bloodstream. The users of Qutenza are unlikely to experience the common central nervous system side effects of systemically administered drugs used to treat neuropathic pain such as anti-convulsants, anti-depressants and opioids and the potential for abuse and addiction associated with some of these drugs. It is currently evaluating the nature, scope and timing of continued development of Qutenza to support the potential for label expansion in the United States. Areas of potential focus for label expansion include HIV-distal sensory neuropathy, or HIV-DSP, also known as HIV-associated neuropathy, or HIV-AN, painful diabetic neuropathy, or PDN, and potentially other neuropathic pain indications. It expects that Qutenza would compete against, and may be used in combination with, well-established products currently used both on and off-label in its target indications. The most directly competitive currently marketed products in the United States are Lidoderm, an FDA-approved 5% lidocaine topical patch for the treatment of PHN marketed by Endo Pharmaceuticals, and Lyrica, an oral anti-convulsant, marketed by Pfizer for use in the treatment of PHN. Regulation by governmental authorities in the United States and other countries is a significant factor in the development, manufacture and marketing of pharmaceuticals.
Executives
Ron Martell officer: President and CEO PONIARD PHARMACEUTICALS, INC., 750 BATTERY STREET, SUITE 330, SAN FRANCISCO CA 94111
Stephen F Ghiglieri officer: Exec. V.P., COO & CFO C/O NEUROGESX INC., 981 INDUSTRIAL ROAD SUITE F, SAN CARLOS CA 94070
Robert Nelsen director, 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Steven H Nelson director 21650 OXNARD STREET, WOODLAND HILLS CA 91367
Gary A Lyons director 12790 EL CAMINO REAL, C/O NEUROCRINE BIOSCIENCES, SAN DIEGO CA 92130
Bradford S Goodwin director 5000 SHORELINE COURT, SUITE 101, SOUTH SAN FRANCISCO CA 94080
John A Orwin director C/O RELYPSA, INC., 700 SAGINAW DR., REDWOOD CITY CA 94063
Jean Jacques Bienaime director 925 PAGE MILL ROAD, PALO ALTO CA 94304
Anthony A Ditonno director, officer: President and CEO C/O OXYGEN BIOTHERAPEUTICS, INC., ONE COPLEY PARKWAY, STE. 490, MORRISVILLE NC 27560
Jeffrey K Tobias officer: CMO, EVP Research & Deve C/O NEUROGESX INC, 981 INDUSTRIAL ROAD SUITE F, SAN CARLOS CA 94070
Moshe Arkin 10 percent owner, other: also member of 10% owner group 6 HACHOSHLIM ST., HERZELIA L3 4672406
Keith Crandell 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Clinton Bybee 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Steven Lazarus 10 percent owner 8755 WEST HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Arch Venture Partners V Llc 10 percent owner C/O ARCH VENTURE PARTNERS, 8755 W. HIGGINS AVE. #1025, CHICAGO IL 60631

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