NanoTech Entertainment (NanoTech Entertainment) Operating Income : $-1.24 Mil (TTM As of Mar. 2010)

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What is NanoTech Entertainment Operating Income?

NanoTech Entertainment's Operating Income for the three months ended in Mar. 2010 was $-0.31 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2010 was $-1.24 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. NanoTech Entertainment's Operating Income for the three months ended in Mar. 2010 was $-0.31 Mil. NanoTech Entertainment's Revenue for the three months ended in Mar. 2010 was $0.02 Mil. Therefore, NanoTech Entertainment's Operating Margin % for the quarter that ended in Mar. 2010 was -2,053.33%.

NanoTech Entertainment'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. NanoTech Entertainment's annualized ROC % for the quarter that ended in Mar. 2010 was -858.54%. NanoTech Entertainment's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2010 was -82,133.33%.

NanoTech Entertainment Operating Income Historical Data

The historical data trend for NanoTech Entertainment'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.

NanoTech Entertainment Operating Income Chart

NanoTech Entertainment Annual Data

Trend

Jun09

Operating Income

-1.06

NanoTech Entertainment Quarterly Data
	Sep07	Dec07	Mar08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10
Operating Income	Get a 7-Day Free Trial					-0.21	-0.42	-0.27	-0.24	-0.31

NanoTech Entertainment 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 Mar. 2010 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1.24 Mil.

NanoTech Entertainment (OTCPK:NTEK) Operating Income Explanation

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

NanoTech Entertainment's annualized ROC % for the quarter that ended in Mar. 2010 is calculated as:

	ROC % (Q: Mar. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2009 )	+	Invested Capital (Q: Mar. 2010 ))	/ count )
=	-1.232 * ( 1 - 0% )	/	( (0.14	+	0.147)	/ 2 )
=	-1.232	/	0.1435
=	-858.54 %

where

	Invested Capital		(Q: Dec. 2009 )
=	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	))
=	0.139	-	1.584	-	( 0.019	-	max(0, 1.723	-	0.138	+	0.019	))
=	0.14

	Invested Capital		(Q: Mar. 2010 )
=	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	))
=	0.114	-	1.851	-	( 0	-	max(0, 1.997	-	0.113	+	0	))
=	0.147

Note: The Operating Income data used here is four times the quarterly (Mar. 2010) data.

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

NanoTech Entertainment's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2010 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2010 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2009		Q: Mar. 2010
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-1.232	/	( ( (0.002 + max(-1.47, 0))	+	(0.001 + max(-1.744, 0)) )	/	2 )
=	-1.232	/	( ( 0.002	+	0.001 )	/	2 )
=	-1.232	/	0.0015
=	-82,133.33 %

where Working Capital is:

	Working Capital		(Q: Dec. 2009 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0.011	+	0.108)	-	(1.584	+	0	+	0.0050000000000001)
=	-1.47

	Working Capital		(Q: Mar. 2010 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	0	+	0.108)	-	(1.851	+	0	+	0.0010000000000001)
=	-1.744

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2010) EBIT data.

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

NanoTech Entertainment's Operating Margin % for the quarter that ended in Mar. 2010 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2010 )	/	Revenue (Q: Mar. 2010 )
	=	-0.308	/	0.015
	=	-2,053.33 %

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.

NanoTech Entertainment Operating Income Related Terms

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NanoTech Entertainment (NanoTech Entertainment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » NanoTech Entertainment Inc (OTCPK:NTEK) » Definitions » Operating Income

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Traded in Other Exchanges

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Address

2450 Kruse Drive, San Jose, CA, USA, 95131

Website

https://www.ntek.com

NanoTech Entertainment Inc operates as a manufacturer and developer of technology, games, television content, consumer goods, mobile applications, and consumer software. The portfolio of the company includes Ultraflix which offers 4K Ultra HD video for its subscribers, 4K studios which offers hardware and software solutions for 4K Ultra high definition output, and Ultra Media group which is a content licensing and production company that focuses on acquisition and creation of digital content. The company generates revenue from licensing products to third parties for manufacturing, distribution, manufacture, and sale and rental of products directly to consumers.

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