Dendreon (FRA:DNR) Operating Income : €-8.3 Mil (TTM As of Sep. 2014)

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What is Dendreon Operating Income?

Dendreon's Operating Income for the three months ended in Sep. 2014 was €-6.8 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was €-8.3 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Dendreon's Operating Income for the three months ended in Sep. 2014 was €-6.8 Mil. Dendreon's Revenue for the three months ended in Sep. 2014 was €56.7 Mil. Therefore, Dendreon's Operating Margin % for the quarter that ended in Sep. 2014 was -11.93%.

Dendreon'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. Dendreon's annualized ROC % for the quarter that ended in Sep. 2014 was -19.75%. Dendreon's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2014 was -22.68%.

Dendreon Operating Income Historical Data

The historical data trend for Dendreon'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.

* Premium members only.

Dendreon Operating Income Chart

Dendreon Annual Data

Trend

Dec05

Dec06

Dec07

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Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Operating Income

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-220.88

-221.69

-258.93

-177.41

Dendreon Quarterly Data
	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Mar15
Operating Income	Get a 7-Day Free Trial															-54.98	-16.69	-1.23	-6.77	-0.29

Dendreon 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 Sep. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €-8.3 Mil.

Dendreon (FRA:DNR) Operating Income Explanation

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

Dendreon's annualized ROC % for the quarter that ended in Sep. 2014 is calculated as:

	ROC % (Q: Sep. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2014 )	+	Invested Capital (Q: Sep. 2014 ))	/ count )
=	-27.084 * ( 1 - 0% )	/	( (131.197	+	143.006)	/ 2 )
=	-27.084	/	137.1015
=	-19.75 %

where

	Invested Capital		(Q: Jun. 2014 )
=	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	))
=	268.367	-	43.479	-	( 93.691	-	max(0, 54.217	-	174.084	+	93.691	))
=	131.197

	Invested Capital		(Q: Sep. 2014 )
=	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	))
=	264.044	-	38.114	-	( 82.924	-	max(0, 49.295	-	172.845	+	82.924	))
=	143.006

Note: The Operating Income data used here is four times the quarterly (Sep. 2014) data.

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

Dendreon's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2014 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2014 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2014		Q: Sep. 2014
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-27.056	/	( ( (83.504 + max(28.452, 0))	+	(83.634 + max(43.042, 0)) )	/	2 )
=	-27.056	/	( ( 111.956	+	126.676 )	/	2 )
=	-27.056	/	119.316
=	-22.68 %

where Working Capital is:

	Working Capital		(Q: Jun. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(22.305	+	51.543	+	6.545)	-	(43.479	+	4.783	+	3.679)
=	28.452

	Working Capital		(Q: Sep. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(15.98	+	51.552	+	22.389)	-	(38.114	+	4.904	+	3.861)
=	43.042

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2014) EBIT data.

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

Dendreon's Operating Margin % for the quarter that ended in Sep. 2014 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2014 )	/	Revenue (Q: Sep. 2014 )
	=	-6.771	/	56.743
	=	-11.93 %

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.

Dendreon Operating Income Related Terms

Thank you for viewing the detailed overview of Dendreon's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Dendreon (FRA:DNR) Business Description

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http://www.dendreon.com

Dendreon Corp is a Delaware corporation. The Company is a biotechnology company focused on the discovery, development and commercialization of novel therapeutics that improve cancer treatment options for patients. Its product portfolio includes active cellular immunotherapy and small molecule product candidates to treat a range of cancers. PROVENGE(r) (sipuleucel-T), is its first commercialized product licensed by the United States Food and Drug Administration, and is a first in class autologous cellular immunotherapy for the treatment of asymptomatic or minimally symptomatic, metastatic, castrate-resistant (hormone-refractory) prostate cancer. Prostate cancer is the most common non-skin cancer among men in the United States, with over one million men currently diagnosed with the disease, and the second cause of cancer deaths in men in the United States. The Company owns worldwide rights for PROVENGE. The Other potential product candidates we have under development include our investigational active cellular immunotherapy, DN24-02, which potentially may be used for the treatment of patients with bladder, breast, ovarian and other solid tumors expressing HER2/neu. In addition, the Company has developed an orally-available small molecule treatment targeting TRPM8 that could be applicable to multiple types of cancer. The Company currently depends on specialized vendor relationships that are not readily replaceable for some of the components for its active immunotherapy candidates. Products such as chemotherapeutics, androgen metabolism or androgen receptor antagonists, endothelin A receptor antagonists, antisense compounds, angiogenesis inhibitors and gene therapies for cancer are also under development by a number of companies and could potentially compete with PROVENGE and its other product candidates. The Company's competitors include major pharmaceutical companies. The Company is subject to a variety of federal, state and local regulations relating to the use, handling, storage and disposal of hazardous materials, including chemicals and radioactive and biological materials. The Company is also subject to regulation by the Occupational Safety and Health Administration ('OSHA'), and the Environmental Protection Agency ('EPA'), and to regulation under the Toxic Substances Control Act.

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