Sycamore Networks (Sycamore Networks) Cost of Goods Sold : $21.56 Mil (TTM As of Jan. 2013)

Sycamore Networks Cost of Goods Sold Chart

Sycamore Networks Annual Data
	Trend	Jul03	Jul04	Jul05	Jul06	Jul07	Jul08	Jul09	Jul10	Jul11	Jul12
Cost of Goods Sold		Get a 7-Day Free Trial					62.57	38.47	30.95	22.51	24.33

Sycamore Networks Quarterly Data
	Apr08	Jul08	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13
Cost of Goods Sold	Get a 7-Day Free Trial															5.44	5.46	7.18	4.90	4.02

Sycamore Networks Cost of Goods Sold Calculation

Cost of Goods Sold is the aggregate cost of goods produced and sold, and services rendered during the reporting period. It excludes Total Operating Expense, such as Depreciation, Depletion and Amortization and Selling, General, & Admin. Expense.

Cost of Goods Sold for the trailing twelve months (TTM) ended in Jan. 2013 adds up the quarterly data reported by the company within the most recent 12 months, which was $21.56 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.

Sycamore Networks  (OTCPK:SCMR) Cost of Goods Sold Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

Sycamore Networks's Gross Margin % for the three months ended in Jan. 2013 is calculated as:

* 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.

A company that has a moat can usually maintain or even expand their Gross Margin. A company can increase its Gross Margin in two ways. It can increase the prices of the goods it sells and keeps its Cost of Goods Sold unchanged. Or it can keep the sales price unchanged and squeeze its suppliers to reduce the Cost of Goods Sold. Warren Buffett believes businesses with the power to raise prices have moats.

Cost of Goods Sold is also directly linked to another concept called Inventory Turnover:

Sycamore Networks's Inventory Turnover for the three months ended in Jan. 2013 is calculated as:

* 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.

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher inventory turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate inventory turnover. An average inventory is a better indication.

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Sycamore Networks (Sycamore Networks) Business Description