CICN (SMS Alternatives) Operating Income: $-1.38 Mil (TTM As of Jun. 2020)

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CICN SMS Alternatives Inc CICN
12 GF Score
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What is SMS Alternatives Operating Income?

SMS Alternatives CICN 12 Operating Income is $-1.38 Mil as of Jun. 2020. GuruFocus rates CICN with a GF Score™ of 12/100.

SMS Alternatives's Operating Income for the three months ended in Jun. 2020 was $-0.50 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2020 was $-1.38 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. SMS Alternatives's Operating Income for the three months ended in Jun. 2020 was $-0.50 Mil. SMS Alternatives's Revenue for the three months ended in Jun. 2020 was $0.10 Mil. Therefore, SMS Alternatives's Operating Margin % for the quarter that ended in Jun. 2020 was -517.53%.

SMS Alternatives's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. SMS Alternatives's annualized ROC % for the quarter that ended in Jun. 2020 was -57.73%. SMS Alternatives's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2020 was -4,462.22%.

SMS Alternatives  (OTCPK:CICN) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

SMS Alternatives's annualized ROC % for the quarter that ended in Jun. 2020 is calculated as:

ROC % (Q: Jun. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2020 ) + Invested Capital (Q: Jun. 2020 ))/ count )
=-2.008 * ( 1 - 0% )/( (3.433 + 3.524)/ 2 )
=-2.008/3.4785
=-57.73 %

where

Invested Capital(Q: Mar. 2020 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=0.67 - 2.648 - ( 0.054 - max(0, 6.028 - 0.617+0.054))
=3.433

Invested Capital(Q: Jun. 2020 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=0.381 - 2.67 - ( 0.045 - max(0, 6.157 - 0.344+0.045))
=3.524

Note: The Operating Income data used here is four times the quarterly (Jun. 2020) data.

2. Joel Greenblatt's definition of Return on Capital:

SMS Alternatives's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2020 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2020  Q: Jun. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-2.008/( ( (0.053 + max(-2.509, 0)) + (0.037 + max(-2.707, 0)) )/ 2 )
=-2.008/( ( 0.053 + 0.037 )/ 2 )
=-2.008/0.045
=-4,462.22 %

where Working Capital is:

Working Capital(Q: Mar. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.325 + 0 + 0.238) - (2.648 + 0.424 + -8.8817841970013E-16)
=-2.509

Working Capital(Q: Jun. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.007 + 0 + 0.292) - (2.67 + 0.336 + 0)
=-2.707

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2020) EBIT data.

3. Operating Income is also linked to Operating Margin %:

SMS Alternatives's Operating Margin % for the quarter that ended in Jun. 2020 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2020 )/Revenue (Q: Jun. 2020 )
=-0.502/0.097
=-517.53 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

SMS Alternatives Operating Income Related Terms

SMS Alternatives Operating Income Historical Data

* Premium members only.

The historical data trend for SMS Alternatives's Operating Income 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.

SMS Alternatives Operating Income Chart

SMS Alternatives Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.42 -1.89 -1.75 -1.86 -1.35

SMS Alternatives Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
Operating Income 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 -0.53 0.13 -0.50 -0.51 -0.50
CICN
12GF Score
SMS Alternatives Inc CICN
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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SMS Alternatives Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1.38 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $-1.38 Mil mean?
SMS Alternatives (CICN) has a Operating Income of $-1.38 Mil as of Jun. 2020. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on SMS Alternatives and its competitors.
Is SMS Alternatives' Operating Income too high?
SMS Alternatives' current Operating Income is $-1.38 Mil. Overall, SMS Alternatives has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does SMS Alternatives' Operating Income compare to INTV and IONI?
SMS Alternatives' Operating Income of $-1.38 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on SMS Alternatives and its competitors. SMS Alternatives's current Operating Income is $-1.38 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMS Alternatives stock overvalued right now?
SMS Alternatives (CICN) has a current Operating Income of $-1.38 Mil. The current Operating Income is $-1.38 Mil. SMS Alternatives' overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For SMS Alternatives (CICN), the current Operating Income is $-1.38 Mil as of Jun. 2020. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

SMS Alternatives Business Description

Address 8000 Regency Parkway, Suite 542, Cary, NC, USA, 27518
SMS Alternatives Inc formerly Cicero Inc provides desktop activity intelligence and improvement software that helps organizations isolate issues and automates employee tasks in the contact center and back office. It provides a combination of application and process integration, automation and desktop analytics capabilities, technical support, training and consulting services. Geographically, it operates in the United States, and Europe. The company generates revenue from three categories: software, maintenance, and services; out of which a vast majority is earned from Software within the United States.
12GF Score

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Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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