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inContact (inContact) Operating Margin % : -7.45% (As of Sep. 2016)


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What is inContact Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. inContact's Operating Income for the three months ended in Sep. 2016 was $-5.0 Mil. inContact's Revenue for the three months ended in Sep. 2016 was $67.0 Mil. Therefore, inContact's Operating Margin % for the quarter that ended in Sep. 2016 was -7.45%.

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


SAAS's Operating Margin % is not ranked *
in the Software industry.
Industry Median: 3.12
* Ranked among companies with meaningful Operating Margin % only.

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

inContact's Operating Income for the three months ended in Sep. 2016 was $-5.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2016 was $-15.9 Mil.


inContact Operating Margin % Historical Data

The historical data trend for inContact'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.

inContact Operating Margin % Chart

inContact 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 -9.66 -4.20 -6.45 -11.22 -7.60

inContact Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
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 -6.96 -3.49 -5.14 -8.74 -7.45

Competitive Comparison of inContact's Operating Margin %

For the Software - Application subindustry, inContact'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.


inContact's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, inContact's Operating Margin % distribution charts can be found below:

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



inContact 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.

inContact'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 )
=-16.871 / 221.987
=-7.60 %

inContact's Operating Margin % for the quarter that ended in Sep. 2016 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=-4.991 / 67.018
=-7.45 %

* 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.


inContact  (NAS:SAAS) 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.


inContact Operating Margin % Related Terms

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inContact (inContact) Business Description

Traded in Other Exchanges
N/A
Address
inContact Inc began in 1997 as a reseller of network connectivity services. The Company helps contact centers to create effective customer experiences through its portfolio of cloud contact center call routing, self-service and agent optimization solutions. Its cloud software solutions and services enable contact centers to operate more efficiently, optimize the cost and quality of every customer interaction, and ensure ongoing customer-centric business improvement and growth. The Company's technology platform provides its customers a pay-as-you-go solution without the costs and complexities of premise-based systems. Its proven cloud delivery model provides compelling total cost of ownership savings over premise-based technology by reducing upfront capital expenditures, eliminating the expense of system management and maintenance fees, while providing agility that enables businesses to scale their technology as they grow. The Company operates under two business segments: Software and Network connectivity. The Software segment includes all services related to the delivery of its cloud contact center software solutions. The Network connectivity segment includes all voice and data long distance services provided to customers. The Company provides software which includes the following: automatic call distributing, computer telephony integration, interactive voice response with speech recognition, outbound dialing, PBX and CRM integration, echo agent service surveys and reports, workforce optimization, quality monitoring and screen recording. The Company's registered trademarks include inContact, inTouch, ECHO, inCloud, Satisfaction as a Service and Personal Connection.
Executives
Theodore Stern director EXECUTIVE ASSOCIATES, ONE PPG PLACE, SUITE 2970, PITTSBURGH PA 15222
Hamid Akhavan director 1226 EARNESTINE ST., MCLEAN VA 22101
Scott Welch officer: Chief Operating Officer C/O FIVE9, INC., 4000 EXECUTIVE PARKWAY, SUITE 400, SAN RAMON CA 94583
Diker Management Llc 10 percent owner 570 LEXINGTON AVENUE, 27TH FLOOR, NEW YORK NY 10022
Edward D Bagley 10 percent owner 2350 OAK HILL LANE, SALT LAKE CITY UT 84121
Wynnefield Partners Small Cap Value Lp other: Holder of Common Stock 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Wynnefield Capital Management Llc other: Holder of Common Stock 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Partners Small Cap Value Lp I other: Holder of Common Stock 450 SEVENTH AVENUE, SUITE 509, NEW YORK NY 10123
Wynnefield Capital Inc other: Holder of Common Stock 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
Wynnefield Small Cap Value Offshore Fund Ltd other: Holder of Common Stock 450 SEVENTH AVE, STE 509, NEW YORK NY 10123
James Ozanne director C/O NMI, 2100 POWELL STREET, 12TH FLOOR, EMERYVILLE CA 94608

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