NeoMagic (NeoMagic) Gross Margin % : 57.09% (As of Oct. 2010)

NeoMagic Gross Margin % Chart

NeoMagic Annual Data
	Trend	Jan00	Jan01	Jan02	Jan03	Jan04	Jan05	Jan06	Jan07	Jan08	Jan09
Gross Margin %		Get a 7-Day Free Trial					-29.56	59.96	8.39	20.02	-140.15

NeoMagic Quarterly Data
	Jan06	Apr06	Jul06	Oct06	Jan07	Apr07	Jul07	Oct07	Jan08	Apr08	Jul08	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10
Gross Margin %	Get a 7-Day Free Trial															50.00	60.93	61.62	54.89	57.09

Competitive Comparison of NeoMagic's Gross Margin %

For the Semiconductors subindustry, NeoMagic'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.

NeoMagic's Gross Margin % Distribution in the Semiconductors Industry

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

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

NeoMagic Gross Margin % Calculation

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

NeoMagic's Gross Margin for the fiscal year that ended in Jan. 2009 is calculated as

NeoMagic's Gross Margin for the quarter that ended in Oct. 2010 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 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.

NeoMagic  (OTCPK:NMGC) 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

NeoMagic had a gross margin of 57.09% for the quarter that ended in Oct. 2010 => 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.

NeoMagic Gross Margin % Related Terms

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NeoMagic (NeoMagic) Business Description