Remote Dynamics (Remote Dynamics) Gross Margin % : 40.34% (As of Sep. 2009)

Remote Dynamics Gross Margin % Chart

Remote Dynamics Annual Data
	Trend	Dec99	Dec00	Dec01	Aug02	Aug03	Aug04	Aug05	Aug06	Dec07	Dec08
Gross Margin %		Get a 7-Day Free Trial					53.26	49.93	24.13	62.70	62.44

Remote Dynamics Quarterly Data
	Nov04	Feb05	May05	Aug05	Nov05	Feb06	May06	Aug06	Nov06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09
Gross Margin %	Get a 7-Day Free Trial															65.68	62.65	60.28	58.21	40.34

Competitive Comparison of Remote Dynamics's Gross Margin %

For the Scientific & Technical Instruments subindustry, Remote Dynamics'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.

Remote Dynamics's Gross Margin % Distribution in the Hardware Industry

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

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

Remote Dynamics Gross Margin % Calculation

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

Remote Dynamics's Gross Margin for the fiscal year that ended in Dec. 2008 is calculated as

Remote Dynamics's Gross Margin for the quarter that ended in Sep. 2009 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.

Remote Dynamics  (OTCPK:RMTD) 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

Remote Dynamics had a gross margin of 40.34% for the quarter that ended in Sep. 2009 => 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.

Remote Dynamics Gross Margin % Related Terms

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Remote Dynamics (Remote Dynamics) Business Description