STEC, (FRA:XTC) Gross Margin % : 27.98% (As of Jun. 2013)

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What is STEC, Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. STEC,'s Gross Profit for the three months ended in Jun. 2013 was €4.98 Mil. STEC,'s Revenue for the three months ended in Jun. 2013 was €17.78 Mil. Therefore, STEC,'s Gross Margin % for the quarter that ended in Jun. 2013 was 27.98%.

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

FRA:XTC's Gross Margin % is not ranked ^*
in the Hardware industry.
Industry Median: 24.455
* Ranked among companies with meaningful Gross Margin % only.

STEC, had a gross margin of 27.98% for the quarter that ended in Jun. 2013 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for STEC, was 0.00% per year.

STEC, Gross Margin % Historical Data

The historical data trend for STEC,'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.

STEC, Gross Margin % Chart

STEC, Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Gross Margin %

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31.25

47.70

43.45

43.57

35.55

STEC, Quarterly Data
	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13
Gross Margin %	Get a 7-Day Free Trial															36.58	36.99	32.17	26.75	27.98

Competitive Comparison of STEC,'s Gross Margin %

For the Computer Hardware subindustry, STEC,'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.

STEC,'s Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, STEC,'s Gross Margin % distribution charts can be found below:

* The bar in red indicates where STEC,'s Gross Margin % falls into.

STEC, Gross Margin % Calculation

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

STEC,'s Gross Margin for the fiscal year that ended in Dec. 2012 is calculated as

Gross Margin % (A: Dec. 2012 )	=	Gross Profit (A: Dec. 2012 )	/	Revenue (A: Dec. 2012 )
	=	45.6	/	128.251
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(128.251 - 82.654)	/	128.251
	=	35.55 %

STEC,'s Gross Margin for the quarter that ended in Jun. 2013 is calculated as

Gross Margin % (Q: Jun. 2013 )	=	Gross Profit (Q: Jun. 2013 )	/	Revenue (Q: Jun. 2013 )
	=	5	/	17.778
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(17.778 - 12.803)	/	17.778
	=	27.98 %

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.

STEC, (FRA:XTC) 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

STEC, had a gross margin of 27.98% for the quarter that ended in Jun. 2013 => Competition eroding margins

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.

STEC, Gross Margin % Related Terms

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STEC, (FRA:XTC) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.stec-inc.com

STEC, Inc., was incorporated in 1990 in the state of California. It provides enterprise-class Flash solid-state drives that are designed to increase the performance of enterprise-storage systems and servers that companies use to retain and access their critical data. Its products are designed for storage systems and servers that run applications requiring a high level of input/output operations per second ('IOPS') performance, capacity, reliability and low latency. The Company designs and develops its SSD controllers, enhance them with proprietary firmware and combine them with third-party Flash memory to form high-performance SSDs which provide a level of IOPS performance not currently possible with traditional hard disk drives ('HDDs'). The Company sells its SSDs to global storage and server original equipment manufacturers ('OEMs') which integrate them into storage systems and servers used by enterprises in a variety of industries including financial services, government, transportation, defense and aerospace, and transaction processing. It also manufactures small form factor Flash SSDs, cards and modules, as well as custom high density dynamic random access memory ('DRAM') modules for networking, communications and industrial applications. The Company markets its products to OEMs, leveraging its comprehensive design capabilities to offer custom storage solutions to address their specific needs. A major area of its Flash-based product investment has been applied to SSD technology. It also offers both monolithic DRAM modules and DRAM modules based on its proprietary stacking technology. The Company also offers both monolithic DRAM modules and DRAM modules based on its proprietary stacking technology. The Company's ZeusIOPS SSDs are high performance enterprise-class data storage solutions. Its MACH-class SSDs are small form factor, high throughput storage solutions for mission-critical systems in a variety of industries. The Company's Industrial Grade Advanced Technology Attachment ('ATA') PC Cards are viable alternatives to HDDs due to their high reliability and low cost per useable megabyte. CompactFlash products provide full PC Card ATA functionality but are only one-fourth the size of a standard PC Card. Its flash module products include USB and Serial ATA interfaces and are targeted toward embedded systems where device footprint and low power are critical design parameters. The Company's Secure Digital ('SD') Flash Memory Cards are small, removable and non-volatile flash memory with a high performance interface. Its USB flash drive built upon an industrial-grade flash controller technology has capacity of 1GB to 8GB, its USB Flash Drive couples convenience and portability with performance and reliability. The Company offers DRAM products, including dual in-line memory modules ('DIMMs'), small-outline DIMMs, mini-registered DIMMs, very low profile registered DIMMs ('VLP RDIMMs') and Fully-Buffered DIMMs ('FB-DIMMs'). Its pat

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