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Network-1 Technologies (Network-1 Technologies) Gross Margin % : 63.95% (As of Dec. 2023)


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What is Network-1 Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Network-1 Technologies's Gross Profit for the three months ended in Dec. 2023 was $1.14 Mil. Network-1 Technologies's Revenue for the three months ended in Dec. 2023 was $1.78 Mil. Therefore, Network-1 Technologies's Gross Margin % for the quarter that ended in Dec. 2023 was 63.95%.


The historical rank and industry rank for Network-1 Technologies's Gross Margin % or its related term are showing as below:

NTIP' s Gross Margin % Range Over the Past 10 Years
Min: 60.37   Med: 66.4   Max: 71.48
Current: 66.4


During the past 13 years, the highest Gross Margin % of Network-1 Technologies was 71.48%. The lowest was 60.37%. And the median was 66.40%.

NTIP's Gross Margin % is ranked better than
82.91% of 989 companies
in the Business Services industry
Industry Median: 34.65 vs NTIP: 66.40

Network-1 Technologies had a gross margin of 63.95% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Network-1 Technologies was 0.00% per year.


Network-1 Technologies Gross Margin % Historical Data

The historical data trend for Network-1 Technologies'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.

Network-1 Technologies Gross Margin % Chart

Network-1 Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 70.96 62.46 66.29 - 66.40

Network-1 Technologies Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 - 71.88 71.38 - 63.95

Competitive Comparison of Network-1 Technologies's Gross Margin %

For the Specialty Business Services subindustry, Network-1 Technologies'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.


Network-1 Technologies's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Network-1 Technologies's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Network-1 Technologies's Gross Margin % falls into.



Network-1 Technologies Gross Margin % Calculation

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

Network-1 Technologies's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1.7 / 2.601
=(Revenue - Cost of Goods Sold) / Revenue
=(2.601 - 0.874) / 2.601
=66.40 %

Network-1 Technologies's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1.1 / 1.781
=(Revenue - Cost of Goods Sold) / Revenue
=(1.781 - 0.642) / 1.781
=63.95 %

* 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.


Network-1 Technologies  (AMEX:NTIP) 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

Network-1 Technologies had a gross margin of 63.95% for the quarter that ended in Dec. 2023 => 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.


Network-1 Technologies Gross Margin % Related Terms

Thank you for viewing the detailed overview of Network-1 Technologies's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Network-1 Technologies (Network-1 Technologies) Business Description

Traded in Other Exchanges
Address
65 Locust Avenue, Suite 912, New Canaan, CT, USA, 06840
Network-1 Technologies Inc is involved in the business of the development, licensing, and protection of intellectual property rights. The company's current strategy includes continuing to pursue licensing opportunities for its intellectual property assets.
Executives
Robert Michael Mahan officer: Chief Financial Officer 87 MADISON AVENUE, #433, PARK RIDGE NJ 07656
Steven D. Heinemann 10 percent owner C/O GOOSE HILL CAPITAL, 546 FIFTH AVENUE, 14TH FLOOR, NEW YORK NY 10036
Jonathan M Greene officer: Executive Vice President 23 TOPAZ LANE, TRUMBULL CT 06611
Niv Harizman director SAWGRASS CORPORATE INDUSTRIAL PARK, 14000 NW 4TH ST, SUNRISE FL 33325
Allison C Hoffman director 315 EAST 68TH STREET, NEW YORK NY 10065
Emanuel R Pearlman director 250 EAST 79TH STREET, NEW YORK NY 10075
Hound Partners Offshore Fund, Lp 10 percent owner C/O HOUND PARTNERS, LLC, 101 PARK AVENUE, 48TH FLOOR, NEW YORK NY 10178
Hound Partners, Llc 10 percent owner 101 PARK AVENUE, 48TH FLOOR, NEW YORK NY 10178
Hound Performance, Llc 10 percent owner 101 PARK AVENUE, 48TH FLOOR, NEW YORK NY 10178
Auerbach Jonathan A G 10 percent owner 215 E 73RD STREET, NEW YORK NY 10021
Laurent Ohana director 575 LEXINGTON AVENUE, SUITE 400, NEW YORK NY 10022
Woodland Services Corp 10 percent owner
Marilyn Rubenstein 10 percent owner
Jonathan Lieber 10 percent owner 80 CUTTERMILL ROAD STE 311, GREAT NECKK NY 11201
Barry Rubenstein 10 percent owner 68 WHEATLEY RD, BROOKVILLE NY 11545