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Affymetrix (Affymetrix) Operating Margin % : 5.14% (As of Dec. 2015)


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What is Affymetrix Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Affymetrix's Operating Income for the three months ended in Dec. 2015 was $4.9 Mil. Affymetrix's Revenue for the three months ended in Dec. 2015 was $95.6 Mil. Therefore, Affymetrix's Operating Margin % for the quarter that ended in Dec. 2015 was 5.14%.

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


AFFX's Operating Margin % is not ranked *
in the Medical Diagnostics & Research industry.
Industry Median: -5.375
* Ranked among companies with meaningful Operating Margin % only.

Affymetrix's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Affymetrix's Operating Income for the three months ended in Dec. 2015 was $4.9 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2015 was $16.7 Mil.


Affymetrix Operating Margin % Historical Data

The historical data trend for Affymetrix's Operating 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.

Affymetrix Operating Margin % Chart

Affymetrix Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.22 -13.22 -3.80 0.61 4.64

Affymetrix Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
Operating 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 6.73 8.21 9.58 -4.64 5.14

Competitive Comparison of Affymetrix's Operating Margin %

For the Diagnostics & Research subindustry, Affymetrix's Operating Margin %, along with its competitors' market caps and Operating 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.


Affymetrix's Operating Margin % Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Affymetrix's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Affymetrix's Operating Margin % falls into.



Affymetrix Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Affymetrix's Operating Margin % for the fiscal year that ended in Dec. 2015 is calculated as

Operating Margin %=Operating Income (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=16.703 / 359.786
=4.64 %

Affymetrix's Operating Margin % for the quarter that ended in Dec. 2015 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=4.908 / 95.572
=5.14 %

* 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.


Affymetrix  (NAS:AFFX) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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.


Affymetrix Operating Margin % Related Terms

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Affymetrix (Affymetrix) Business Description

Traded in Other Exchanges
N/A
Address
Affymetrix Inc was incorporated in California in 1992 and reincorporated in Delaware in 1998. The Company is a provider of life science tools and molecular diagnostic products that enable parallel analysis of biological systems at the gene, protein and cell level. It sells its products to genomic research centers, academic institutions, government and private laboratories, as well as pharmaceutical, diagnostic and biotechnology companies. The Companys operations consist of two reportable segments, Affymetrix Core and eBioscience. Affymetrix Core is divided into three business units with each business unit having its own research, development and marketing groups to better serve customers and respond quickly to the market needs. The three business units that form Affymetrix Core are; Expression, Genetic Analysis and Clinical Applications, and Life Science Reagents. Expression: This business unit develops and markets the Company's GeneChip gene expression products and services, and the QuantiGene line of low-to-mid-plex RNA measurement products; Genetic Analysis and Clinical Applications. This business unit develops and markets the Company's genotyping, such as the Axiom product line and clinical research applications, such as the CytoScan cytogenetics; Life Science Reagents; This business unit develops and sells reagents, enzymes, purification kits and biochemicals used by life science researchers. eBioscience; This reportable segment specializes in the development, manufacturing, marketing and distribution of research tools in the areas of flow cytometry, immunoassays, microscopic imaging and other protein-based analyses. The Company markets and distributes its products directly to customers in North America, Japan and major European markets. The Company is facing competition as existing companies develop new or improved products, and as companies enter the market with new technologies, such as next-generation sequencing. In the highly multiplexed genotyping and gene expression markets, existing competitive technologies include DNA sequencing, which the Company does not offer and is offered by companies such as Illumina, Inc., Life Technologies Corporation and Pacific Biosciences of California, Inc. The Companys operations are subject to complex and stringent environmental, health, safety and other governmental laws and regulations.
Executives
Nelson C Chan director C/O SYNAPTICS INCORPORATED, 1251 MCKAY DRIVE, SAN JOSE CA 95131
Merilee Raines director IDEXX LABORATORIES, INC., ONE IDEXX DRIVE, WESTBROOK ME 04092
Gary S Guthart director C/O INTUITIVE SURGICAL INC, 1266 KIFER RD, SUNNYVALE CA 94086
Jami K Nachtsheim director
Riccardo Pigliucci director 9640 TOWNE CENTRE DR, SAN DIEGO CA 92121
Andrew J. Last officer: EVP, Chief Operating Officer 3420 CENTRAL EXPRESSWAY, SANTA CLARA CA 95051
Gavin Wood officer: EVP, Chief Financial Officer C/O ADAPTIMMUNE THERAPEUTICS PLC, 60 JUBILEE AVE, MILTON PARK, ABINGDON, OXFORDSHIRE X0 OX14 4RX
Frank Witney director, officer: President and CEO 940 WINTER STREET, C/O PERKINELMER, WALTHAM MA 02451
Fodor Stephen P A director C/O AFFYMETRIX INC, 3420 CENTRAL EXPRESSWAY, SANTA CLARA CA 95051
Robert Paul Wayman director C/O HEWLETT-PACKARD COMPANY, 3000 HANOVER STREET, PALO ALTO CA 94304
Timothy C Barabe officer: Chief Financial Officer C/O ARQULE, INC., 1 WALL STREET, 6TH FLOOR, BURLINGTON MA 01803
Runkel John F Jr officer: EVP and General Counsel C/O INTUITIVE SURGICAL, INC., 1266 KIFER ROAD, SUNNYVALE CA 94086
John D Diekman director C/O 5 AM VENTURES, 501 2ND STREET, SUITE 350, SAN FRANCISCO CA 94107
Kevin M King officer: President and CEO C/O AFFYMETRIX, INC., 3420 CENTRAL EXPRESSWAY, SANTA CLARA CA 95051
Paul Berg director STANFORD UNIVERSITY SCHOOL OF MEDICINE, #B062, STANFORD CA 94305

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