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Viewcast.com (Viewcast.com) Gross Margin % : 44.39% (As of Jun. 2013)


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What is Viewcast.com Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Viewcast.com's Gross Profit for the three months ended in Jun. 2013 was $0.71 Mil. Viewcast.com's Revenue for the three months ended in Jun. 2013 was $1.60 Mil. Therefore, Viewcast.com's Gross Margin % for the quarter that ended in Jun. 2013 was 44.39%.


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


VCST's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 41.71
* Ranked among companies with meaningful Gross Margin % only.

Viewcast.com had a gross margin of 44.39% for the quarter that ended in Jun. 2013 => Durable competitive advantage

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


Viewcast.com Gross Margin % Historical Data

The historical data trend for Viewcast.com'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.

Viewcast.com Gross Margin % Chart

Viewcast.com Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 68.70 63.16 63.24 62.33 62.38

Viewcast.com 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 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 64.30 64.81 59.47 63.54 44.39

Competitive Comparison of Viewcast.com's Gross Margin %

For the Software - Application subindustry, Viewcast.com'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.


Viewcast.com's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Viewcast.com's Gross Margin % distribution charts can be found below:

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



Viewcast.com Gross Margin % Calculation

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

Viewcast.com'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 )
=7.6 / 12.141
=(Revenue - Cost of Goods Sold) / Revenue
=(12.141 - 4.567) / 12.141
=62.38 %

Viewcast.com'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 )
=0.7 / 1.604
=(Revenue - Cost of Goods Sold) / Revenue
=(1.604 - 0.892) / 1.604
=44.39 %

* 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.


Viewcast.com  (OTCPK:VCST) 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

Viewcast.com had a gross margin of 44.39% for the quarter that ended in Jun. 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.


Viewcast.com Gross Margin % Related Terms

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Viewcast.com (Viewcast.com) Business Description

Traded in Other Exchanges
N/A
Address
3701 W. Plano Parkway, Suite 300, Plano, TX, USA, 75075-7840
Viewcast.com Inc is engaged in developing industry hardware and software for the capture, management, transformation and delivery of digital media over IP and mobile networks. The company products include Niagara System and Osprey Cards, provides required technology to deliver the multi-platform experiences.
Executives
Adrian Giuhat officer: CTO 750 W JOHN CARPENTER FWY, STE 700, IRVING TX 75039
Laurie L Latham officer: Chief Financial Officer C/O VIEWCAST COM, 2665 VILLA CREEK DRIVE, DALLAS TX 75234

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