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Strasbaugh (Strasbaugh) Gross Margin % : 43.00% (As of Jun. 2010)


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What is Strasbaugh Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Strasbaugh's Gross Profit for the three months ended in Jun. 2010 was $2.58 Mil. Strasbaugh's Revenue for the three months ended in Jun. 2010 was $6.01 Mil. Therefore, Strasbaugh's Gross Margin % for the quarter that ended in Jun. 2010 was 43.00%.


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


STRB's Gross Margin % is not ranked *
in the Semiconductors industry.
Industry Median: 28.7
* Ranked among companies with meaningful Gross Margin % only.

Strasbaugh had a gross margin of 43.00% for the quarter that ended in Jun. 2010 => Durable competitive advantage

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


Strasbaugh Gross Margin % Historical Data

The historical data trend for Strasbaugh'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.

Strasbaugh Gross Margin % Chart

Strasbaugh Annual Data
Trend Mar98 Mar99 Mar00 Mar01 Mar02 Mar03 Mar04 Dec07 Dec08 Dec09
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.89 25.91 41.61 25.60 34.36

Strasbaugh Quarterly Data
Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10
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 40.61 26.45 36.56 37.55 43.00

Competitive Comparison of Strasbaugh's Gross Margin %

For the Semiconductors subindustry, Strasbaugh'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.


Strasbaugh's Gross Margin % Distribution in the Semiconductors Industry

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

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



Strasbaugh Gross Margin % Calculation

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

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

Gross Margin % (A: Dec. 2009 )=Gross Profit (A: Dec. 2009 ) / Revenue (A: Dec. 2009 )
=4.4 / 12.873
=(Revenue - Cost of Goods Sold) / Revenue
=(12.873 - 8.45) / 12.873
=34.36 %

Strasbaugh's Gross Margin for the quarter that ended in Jun. 2010 is calculated as


Gross Margin % (Q: Jun. 2010 )=Gross Profit (Q: Jun. 2010 ) / Revenue (Q: Jun. 2010 )
=2.6 / 6.007
=(Revenue - Cost of Goods Sold) / Revenue
=(6.007 - 3.424) / 6.007
=43.00 %

* 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.


Strasbaugh  (OTCPK:STRB) 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

Strasbaugh had a gross margin of 43.00% for the quarter that ended in Jun. 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.


Strasbaugh Gross Margin % Related Terms

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Strasbaugh (Strasbaugh) Business Description

Traded in Other Exchanges
N/A
Address
825 Buckley Road, San Luis Obispo, CA, USA, 93401
Strasbaugh makes equipment that is used to make microelectronics. The company manufactures and sells CMP and grinding equipment for use in the production of semiconductor devices. Its CMP and wafer grinding systems are used to manufacture a range of mobile devices, including MEMS, LEDs, RF/power devices, thin film heads, and ICs.
Executives
Bryant R Riley director C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
Miller Lloyd I Iii 10 percent owner
Richard H Nance officer: Executive VP and CFO 825 BUCKLEY ROAD, SAN LUIS OBISPO CA 93401
Wes Cummins director 4505 LORRAINE AVE, DALLAS TX 75205
Danilo Cacciamatta director
Michael B Targoff director 40 WEST 57TH ST., NEW YORK NY 10019

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