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ATGN (AltiGen Communications) Gross Margin % : 60.74% (As of Jun. 2024)


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What is AltiGen Communications Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. AltiGen Communications's Gross Profit for the three months ended in Jun. 2024 was $1.99 Mil. AltiGen Communications's Revenue for the three months ended in Jun. 2024 was $3.28 Mil. Therefore, AltiGen Communications's Gross Margin % for the quarter that ended in Jun. 2024 was 60.74%.

Warning Sign:

AltiGen Communications Inc gross margin has been in long-term decline. The average rate of decline per year is -5.6%.


The historical rank and industry rank for AltiGen Communications's Gross Margin % or its related term are showing as below:

ATGN' s Gross Margin % Range Over the Past 10 Years
Min: 61.21   Med: 78.69   Max: 84.86
Current: 61.21


During the past 13 years, the highest Gross Margin % of AltiGen Communications was 84.86%. The lowest was 61.21%. And the median was 78.69%.

ATGN's Gross Margin % is ranked better than
65.71% of 347 companies
in the Telecommunication Services industry
Industry Median: 50.9 vs ATGN: 61.21

AltiGen Communications had a gross margin of 60.74% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for AltiGen Communications was -5.60% per year.


AltiGen Communications Gross Margin % Historical Data

The historical data trend for AltiGen Communications's Gross 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.

AltiGen Communications Gross Margin % Chart

AltiGen Communications Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 81.38 77.04 72.03 68.06 63.21

AltiGen Communications Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Gross 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 63.25 62.35 60.31 61.34 60.74

Competitive Comparison of AltiGen Communications's Gross Margin %

For the Telecom Services subindustry, AltiGen Communications's Gross Margin %, along with its competitors' market caps and Gross 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.


AltiGen Communications's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, AltiGen Communications's Gross Margin % distribution charts can be found below:

* The bar in red indicates where AltiGen Communications's Gross Margin % falls into.


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AltiGen Communications Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

AltiGen Communications's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=8.6 / 13.681
=(Revenue - Cost of Goods Sold) / Revenue
=(13.681 - 5.033) / 13.681
=63.21 %

AltiGen Communications's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=2 / 3.283
=(Revenue - Cost of Goods Sold) / Revenue
=(3.283 - 1.289) / 3.283
=60.74 %

* 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 positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


AltiGen Communications  (OTCPK:ATGN) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

AltiGen Communications had a gross margin of 60.74% for the quarter that ended in Jun. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


AltiGen Communications Gross Margin % Related Terms

Thank you for viewing the detailed overview of AltiGen Communications's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


AltiGen Communications Business Description

Traded in Other Exchanges
N/A
Address
39899 Balentine Drive, Suite 112, Newark, CA, USA, 94560
AltiGen Communications Inc is a provider of cloud-based Internet Protocol-private branch exchange (IP-PBX) and Contact Center solutions. The company designs, delivers, and supports Voice over Internet Protocol (VoIP) phone systems and call center solutions. Its Unified Communications solutions are designed with an open architecture and its integrated Internet protocol (IP) applications suite provides customers with a business communications solution. It derives a majority of its revenue from the Hosted services.
Executives
Jeremiah Fleming officer: President & COO 4555 CUSHING PARKWAY, FREMONT CA 94538
Miller Lloyd I Iii 10 percent owner
Gilbert Hu director, officer: Chief Executive Officer
Wanger Long Term Opportunity Fund Ii, Lp 10 percent owner 401 N. MICHIGAN AVE., SUITE 1301, CHICAGO IL 60611
Alan B Howe director 1155 KAS DRIVE SUITE 100, RICHARDSON TX 75081
Alan Bradley Howe director 1301 AVENUE OF THE AMERICAS, 7TH FLOOR, NEW YORK NY 10019
Wltof Gp Llc 10 percent owner 401 N. MICHIGAN AVE., SUITE 1301, CHICAGO IL 60611
Philip M Mcdermott officer: Chief Financial Officer
Wanger Investment Mangagement, Llc director 401 N. MICHIGAN AVE., SUITE 1301, CHICAGO IL 60611
Eric Wanger director 401 N. MICHIGAN AVE., SUITE 1301, CHICAGO IL 60611
Michael E Plumer officer: VP of Sales 213 RYDER STREET, SAN MATEO CA 94401
Tsai Mike Mon Yen director 28620 MATADERO CREEK COURT, LOS ALTOS CA 94022
Tacheng Wang director 27101 HORSESHOE LANE, LOS ALTOS HILLS CA 94022
Kenneth Tai director C/O ALTIGEN COMMUNICATIONS INC, 47429 FREMONT BLVD, FREMONT CA 94538
Sun Shirley Tsyr Yi officer: VP of Research & Development