Sycamore Networks (Sycamore Networks) Gross Margin % : 57.54% (As of Jan. 2013)

Sycamore Networks Gross Margin % Chart

Sycamore Networks Annual Data
	Trend	Jul03	Jul04	Jul05	Jul06	Jul07	Jul08	Jul09	Jul10	Jul11	Jul12
Gross Margin %		Get a 7-Day Free Trial					45.83	42.89	54.89	53.77	57.53

Sycamore Networks Quarterly Data
	Apr08	Jul08	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13
Gross Margin %	Get a 7-Day Free Trial															58.78	54.24	57.27	59.36	57.54

Competitive Comparison of Sycamore Networks's Gross Margin %

For the Communication Equipment subindustry, Sycamore Networks'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.

Sycamore Networks's Gross Margin % Distribution in the Hardware Industry

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

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

Sycamore Networks Gross Margin % Calculation

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

Sycamore Networks's Gross Margin for the fiscal year that ended in Jul. 2012 is calculated as

Sycamore Networks's Gross Margin for the quarter that ended in Jan. 2013 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.

Sycamore Networks  (OTCPK:SCMR) 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

Sycamore Networks had a gross margin of 57.54% for the quarter that ended in Jan. 2013 => 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.

Sycamore Networks Gross Margin % Related Terms

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Sycamore Networks (Sycamore Networks) Business Description