MEAS » Topics » Gross Margin:

These excerpts taken from the MEAS 10-K filed Jun 10, 2009.
Gross Margin:  Gross margin (gross profit as a percentage of net sales) increased slightly to approximately 42.0% from 41.8%. The improvement in gross margin is due to several factors, including product sales mix and various cost control measures, partially offset by the strengthening of the Chinese RMB, as well as the adverse impact on gross margins as a result of decrease in volumes.  The more favorable product sales mix is largely associated with decreased proportion of sales of lower gross margin products. This would include sales to the automotive sector, which carries a lower gross margin than our average.   Additionally, our gross margins were adversely impacted by the lower levels of production and absorption of costs during the fourth quarter due to the consumption of inventory as part of the China facility move and to better align inventory levels with lower sales levels.  During the first half of fiscal 2009, there had also been an adverse impact on margins due to increases in certain costs reflecting the pervasive impact on costs associated with higher prices for certain commodities.  The average Chinese RMB exchange rate relative to the U.S. dollar appreciated approximately 7.7% as compared to last year. This translates to approximately $1,409 in annualized margin erosion.  Finally, as with all manufacturers, our gross margins are sensitive to the overall volume of business in that certain costs are fixed.  Since our overall level of business declined in 2009, our gross margins and overall level of profits decreased accordingly.

On a continuing basis, our gross margin may vary due to product mix, sales volume, availability of raw materials, foreign currency exchange rates, and other factors.

Gross Margin:  Gross margin (gross profit as a percentage of net sales) increased slightly to approximately 42.0% from 41.8%. The improvement in gross margin is due to several factors, including product sales mix and various cost control measures, partially offset by the strengthening of the Chinese RMB, as well as the adverse impact on gross margins as a result of decrease in volumes.  The more favorable product sales mix is largely associated with decreased proportion of sales of lower gross margin products. This would include sales to the automotive sector, which carries a lower gross margin than our average.   Additionally, our gross margins were adversely impacted by the lower levels of production and absorption of costs during the fourth quarter due to the consumption of inventory as part of the China facility move and to better align inventory levels with lower sales levels.  During the first half of fiscal 2009, there had also been an adverse impact on margins due to increases in certain costs reflecting the pervasive impact on costs associated with higher prices for certain commodities.  The average Chinese RMB exchange rate relative to the U.S. dollar appreciated approximately 7.7% as compared to last year. This translates to approximately $1,409 in annualized margin erosion.  Finally, as with all manufacturers, our gross margins are sensitive to the overall volume of business in that certain costs are fixed.  Since our overall level of business declined in 2009, our gross margins and overall level of profits decreased accordingly.

On a continuing basis, our gross margin may vary due to product mix, sales volume, availability of raw materials, foreign currency exchange rates, and other factors.

Gross Margin:  Gross margin (gross profit as a percentage of net sales) increased slightly to approximately 42.0% from 41.8%. The improvement in gross margin is due to several factors, including product sales mix and various cost control measures, partially offset by the strengthening of the Chinese RMB, as well as the adverse impact on gross margins as a result of decrease in volumes.  The more favorable product sales mix is largely associated with decreased proportion of sales of lower gross margin products. This would include sales to the automotive sector, which carries a lower gross margin than our average.   Additionally, our gross margins were adversely impacted by the lower levels of production and absorption of costs during the fourth quarter due to the consumption of inventory as part of the China facility move and to better align inventory levels with lower sales levels.  During the first half of fiscal 2009, there had also been an adverse impact on margins due to increases in certain costs reflecting the pervasive impact on costs associated with higher prices for certain commodities.  The average Chinese RMB exchange rate relative to the U.S. dollar appreciated approximately 7.7% as compared to last year. This translates to approximately $1,409 in annualized margin erosion.  Finally, as with all manufacturers, our gross margins are sensitive to the overall volume of business in that certain costs are fixed.  Since our overall level of business declined in 2009, our gross margins and overall level of profits decreased accordingly.

On a continuing basis, our gross margin may vary due to product mix, sales volume, availability of raw materials, foreign currency exchange rates, and other factors.

Gross Margin:  Gross margin (gross profit as a percentage of net sales) increased slightly to approximately 42.0% from 41.8%. The improvement in gross margin is due to several factors, including product sales mix and various cost control measures, partially offset by the strengthening of the Chinese RMB, as well as the adverse impact on gross margins as a result of decrease in volumes.  The more favorable product sales mix is largely associated with decreased proportion of sales of lower gross margin products. This would include sales to the automotive sector, which carries a lower gross margin than our average.   Additionally, our gross margins were adversely impacted by the lower levels of production and absorption of costs during the fourth quarter due to the consumption of inventory as part of the China facility move and to better align inventory levels with lower sales levels.  During the first half of fiscal 2009, there had also been an adverse impact on margins due to increases in certain costs reflecting the pervasive impact on costs associated with higher prices for certain commodities.  The average Chinese RMB exchange rate relative to the U.S. dollar appreciated approximately 7.7% as compared to last year. This translates to approximately $1,409 in annualized margin erosion.  Finally, as with all manufacturers, our gross margins are sensitive to the overall volume of business in that certain costs are fixed.  Since our overall level of business declined in 2009, our gross margins and overall level of profits decreased accordingly.

On a continuing basis, our gross margin may vary due to product mix, sales volume, availability of raw materials, foreign currency exchange rates, and other factors.

Gross
Margin:  
Gross margin (gross profit as a percentage of net
sales) increased slightly to approximately 42.0% from 41.8%. The improvement in
gross margin is due to several factors, including product sales mix and various
cost control measures, partially offset by the strengthening of the Chinese RMB,
as well as the adverse impact on gross margins as a result of decrease in
volumes.  The more favorable product sales mix is largely associated
with decreased proportion of sales of lower gross margin products. This would
include sales to the automotive sector, which carries a lower gross margin than
our average.   Additionally, our gross margins were adversely
impacted by the lower levels of production and absorption of costs during the
fourth quarter due to the consumption of inventory as part of the China facility
move and to better align inventory levels with lower sales
levels.  During the first half of fiscal 2009, there had also been an
adverse impact on margins due to increases in certain costs reflecting the
pervasive impact on costs associated with higher prices for certain
commodities.  The average Chinese RMB exchange rate relative to the
U.S. dollar appreciated approximately 7.7% as compared to last year. This
translates to approximately $1,409 in annualized margin
erosion.  Finally, as with all manufacturers, our gross margins are
sensitive to the overall volume of business in that certain costs are
fixed.  Since our overall level of business declined in 2009, our
gross margins and overall level of profits decreased accordingly.



On a
continuing basis, our gross margin may vary due to product mix, sales volume,
availability of raw materials, foreign currency exchange rates, and other
factors.



Gross
Margin:  
Gross margin (gross profit as a percentage of net
sales) increased slightly to approximately 42.0% from 41.8%. The improvement in
gross margin is due to several factors, including product sales mix and various
cost control measures, partially offset by the strengthening of the Chinese RMB,
as well as the adverse impact on gross margins as a result of decrease in
volumes.  The more favorable product sales mix is largely associated
with decreased proportion of sales of lower gross margin products. This would
include sales to the automotive sector, which carries a lower gross margin than
our average.   Additionally, our gross margins were adversely
impacted by the lower levels of production and absorption of costs during the
fourth quarter due to the consumption of inventory as part of the China facility
move and to better align inventory levels with lower sales
levels.  During the first half of fiscal 2009, there had also been an
adverse impact on margins due to increases in certain costs reflecting the
pervasive impact on costs associated with higher prices for certain
commodities.  The average Chinese RMB exchange rate relative to the
U.S. dollar appreciated approximately 7.7% as compared to last year. This
translates to approximately $1,409 in annualized margin
erosion.  Finally, as with all manufacturers, our gross margins are
sensitive to the overall volume of business in that certain costs are
fixed.  Since our overall level of business declined in 2009, our
gross margins and overall level of profits decreased accordingly.



On a
continuing basis, our gross margin may vary due to product mix, sales volume,
availability of raw materials, foreign currency exchange rates, and other
factors.



Gross
Margin:  
Gross margin (gross profit as a percentage of net
sales) increased slightly to approximately 42.0% from 41.8%. The improvement in
gross margin is due to several factors, including product sales mix and various
cost control measures, partially offset by the strengthening of the Chinese RMB,
as well as the adverse impact on gross margins as a result of decrease in
volumes.  The more favorable product sales mix is largely associated
with decreased proportion of sales of lower gross margin products. This would
include sales to the automotive sector, which carries a lower gross margin than
our average.   Additionally, our gross margins were adversely
impacted by the lower levels of production and absorption of costs during the
fourth quarter due to the consumption of inventory as part of the China facility
move and to better align inventory levels with lower sales
levels.  During the first half of fiscal 2009, there had also been an
adverse impact on margins due to increases in certain costs reflecting the
pervasive impact on costs associated with higher prices for certain
commodities.  The average Chinese RMB exchange rate relative to the
U.S. dollar appreciated approximately 7.7% as compared to last year. This
translates to approximately $1,409 in annualized margin
erosion.  Finally, as with all manufacturers, our gross margins are
sensitive to the overall volume of business in that certain costs are
fixed.  Since our overall level of business declined in 2009, our
gross margins and overall level of profits decreased accordingly.



On a
continuing basis, our gross margin may vary due to product mix, sales volume,
availability of raw materials, foreign currency exchange rates, and other
factors.



Gross
Margin:  
Gross margin (gross profit as a percentage of net
sales) increased slightly to approximately 42.0% from 41.8%. The improvement in
gross margin is due to several factors, including product sales mix and various
cost control measures, partially offset by the strengthening of the Chinese RMB,
as well as the adverse impact on gross margins as a result of decrease in
volumes.  The more favorable product sales mix is largely associated
with decreased proportion of sales of lower gross margin products. This would
include sales to the automotive sector, which carries a lower gross margin than
our average.   Additionally, our gross margins were adversely
impacted by the lower levels of production and absorption of costs during the
fourth quarter due to the consumption of inventory as part of the China facility
move and to better align inventory levels with lower sales
levels.  During the first half of fiscal 2009, there had also been an
adverse impact on margins due to increases in certain costs reflecting the
pervasive impact on costs associated with higher prices for certain
commodities.  The average Chinese RMB exchange rate relative to the
U.S. dollar appreciated approximately 7.7% as compared to last year. This
translates to approximately $1,409 in annualized margin
erosion.  Finally, as with all manufacturers, our gross margins are
sensitive to the overall volume of business in that certain costs are
fixed.  Since our overall level of business declined in 2009, our
gross margins and overall level of profits decreased accordingly.



On a
continuing basis, our gross margin may vary due to product mix, sales volume,
availability of raw materials, foreign currency exchange rates, and other
factors.



Gross Margin.  Overall, gross margin (gross profit as a percent of net sales) decreased to 41.8% for the fiscal year ended March 31, 2008 from 43.7% for the fiscal year ended March 31, 2007.

The decline in margin was primarily due to several factors including product sales mix, a discrete quality event discussed below and the strengthening of the Chinese RMB, as well as unfavorable absorption of manufacturing overhead. The unfavorable product sales mix is largely associated with increased sales to our largest customer, which primarily serves the automotive market and carries a lower gross margin than our average. During the second quarter ended September 30, 2007, the Company recorded an accrual of approximately $300 to cover costs associated with the expected scrap and rework resulting from an isolated large return of goods. The issue that led to the return, which the Company believes has been resolved, was largely attributable to a problem with raw material supplied by one of our vendors. In addition to this accrual, we incurred approximately $200 in unfavorable direct labor variance in the second quarter associated with this event. During the twelve months ended March 31, 2008, the Chinese RMB exchange rate relative to the US dollar appreciated approximately 9% as compared to the same period last year. This translates to net amount of approximately $1,674 in annualized margin erosion. Also negatively impacting margins was lower absorption of manufacturing overhead in the fourth quarter relative to sales mainly due of the reduction of finished goods inventory and production levels.

 
34

 

Gross Margin.  Overall, gross margin (gross profit as a percent of net sales) decreased to 41.8% for the fiscal year ended March 31, 2008 from 43.7% for the fiscal year ended March 31, 2007.

The decline in margin was primarily due to several factors including product sales mix, a discrete quality event discussed below and the strengthening of the Chinese RMB, as well as unfavorable absorption of manufacturing overhead. The unfavorable product sales mix is largely associated with increased sales to our largest customer, which primarily serves the automotive market and carries a lower gross margin than our average. During the second quarter ended September 30, 2007, the Company recorded an accrual of approximately $300 to cover costs associated with the expected scrap and rework resulting from an isolated large return of goods. The issue that led to the return, which the Company believes has been resolved, was largely attributable to a problem with raw material supplied by one of our vendors. In addition to this accrual, we incurred approximately $200 in unfavorable direct labor variance in the second quarter associated with this event. During the twelve months ended March 31, 2008, the Chinese RMB exchange rate relative to the US dollar appreciated approximately 9% as compared to the same period last year. This translates to net amount of approximately $1,674 in annualized margin erosion. Also negatively impacting margins was lower absorption of manufacturing overhead in the fourth quarter relative to sales mainly due of the reduction of finished goods inventory and production levels.

 
34

 

Gross Margin.  Overall, gross margin (gross profit as a percent of net sales) decreased to 41.8% for the fiscal year ended March 31, 2008 from 43.7% for the fiscal year ended March 31, 2007.

The decline in margin was primarily due to several factors including product sales mix, a discrete quality event discussed below and the strengthening of the Chinese RMB, as well as unfavorable absorption of manufacturing overhead. The unfavorable product sales mix is largely associated with increased sales to our largest customer, which primarily serves the automotive market and carries a lower gross margin than our average. During the second quarter ended September 30, 2007, the Company recorded an accrual of approximately $300 to cover costs associated with the expected scrap and rework resulting from an isolated large return of goods. The issue that led to the return, which the Company believes has been resolved, was largely attributable to a problem with raw material supplied by one of our vendors. In addition to this accrual, we incurred approximately $200 in unfavorable direct labor variance in the second quarter associated with this event. During the twelve months ended March 31, 2008, the Chinese RMB exchange rate relative to the US dollar appreciated approximately 9% as compared to the same period last year. This translates to net amount of approximately $1,674 in annualized margin erosion. Also negatively impacting margins was lower absorption of manufacturing overhead in the fourth quarter relative to sales mainly due of the reduction of finished goods inventory and production levels.

 
34

 

Gross Margin.  Overall, gross margin (gross profit as a percent of net sales) decreased to 41.8% for the fiscal year ended March 31, 2008 from 43.7% for the fiscal year ended March 31, 2007.

The decline in margin was primarily due to several factors including product sales mix, a discrete quality event discussed below and the strengthening of the Chinese RMB, as well as unfavorable absorption of manufacturing overhead. The unfavorable product sales mix is largely associated with increased sales to our largest customer, which primarily serves the automotive market and carries a lower gross margin than our average. During the second quarter ended September 30, 2007, the Company recorded an accrual of approximately $300 to cover costs associated with the expected scrap and rework resulting from an isolated large return of goods. The issue that led to the return, which the Company believes has been resolved, was largely attributable to a problem with raw material supplied by one of our vendors. In addition to this accrual, we incurred approximately $200 in unfavorable direct labor variance in the second quarter associated with this event. During the twelve months ended March 31, 2008, the Chinese RMB exchange rate relative to the US dollar appreciated approximately 9% as compared to the same period last year. This translates to net amount of approximately $1,674 in annualized margin erosion. Also negatively impacting margins was lower absorption of manufacturing overhead in the fourth quarter relative to sales mainly due of the reduction of finished goods inventory and production levels.

 
34

 

Gross
Margin.
  Overall, gross margin (gross profit as a percent of net
sales) decreased to 41.8% for the fiscal year ended March 31, 2008 from 43.7%
for the fiscal year ended March 31, 2007.



The
decline in margin was primarily due to several factors including product sales
mix, a discrete quality event discussed below and the strengthening of the
Chinese RMB, as well as unfavorable absorption of manufacturing overhead. The
unfavorable product sales mix is largely associated with increased sales to our
largest customer, which primarily serves the automotive market and carries a
lower gross margin than our average. During the second quarter ended September
30, 2007, the Company recorded an accrual of approximately $300 to cover costs
associated with the expected scrap and rework resulting from an isolated large
return of goods. The issue that led to the return, which the Company believes
has been resolved, was largely attributable to a problem with raw material
supplied by one of our vendors. In addition to this accrual, we incurred
approximately $200 in unfavorable direct labor variance in the second quarter
associated with this event. During the twelve months ended March 31, 2008, the
Chinese RMB exchange rate relative to the US dollar appreciated approximately 9%
as compared to the same period last year. This translates to net amount of
approximately $1,674 in annualized margin erosion. Also negatively impacting
margins was lower absorption of manufacturing overhead in the fourth quarter
relative to sales mainly due of the reduction of finished goods inventory and
production levels.




 



34







 




Gross
Margin.
  Overall, gross margin (gross profit as a percent of net
sales) decreased to 41.8% for the fiscal year ended March 31, 2008 from 43.7%
for the fiscal year ended March 31, 2007.



The
decline in margin was primarily due to several factors including product sales
mix, a discrete quality event discussed below and the strengthening of the
Chinese RMB, as well as unfavorable absorption of manufacturing overhead. The
unfavorable product sales mix is largely associated with increased sales to our
largest customer, which primarily serves the automotive market and carries a
lower gross margin than our average. During the second quarter ended September
30, 2007, the Company recorded an accrual of approximately $300 to cover costs
associated with the expected scrap and rework resulting from an isolated large
return of goods. The issue that led to the return, which the Company believes
has been resolved, was largely attributable to a problem with raw material
supplied by one of our vendors. In addition to this accrual, we incurred
approximately $200 in unfavorable direct labor variance in the second quarter
associated with this event. During the twelve months ended March 31, 2008, the
Chinese RMB exchange rate relative to the US dollar appreciated approximately 9%
as compared to the same period last year. This translates to net amount of
approximately $1,674 in annualized margin erosion. Also negatively impacting
margins was lower absorption of manufacturing overhead in the fourth quarter
relative to sales mainly due of the reduction of finished goods inventory and
production levels.




 



34







 




Gross
Margin.
  Overall, gross margin (gross profit as a percent of net
sales) decreased to 41.8% for the fiscal year ended March 31, 2008 from 43.7%
for the fiscal year ended March 31, 2007.



The
decline in margin was primarily due to several factors including product sales
mix, a discrete quality event discussed below and the strengthening of the
Chinese RMB, as well as unfavorable absorption of manufacturing overhead. The
unfavorable product sales mix is largely associated with increased sales to our
largest customer, which primarily serves the automotive market and carries a
lower gross margin than our average. During the second quarter ended September
30, 2007, the Company recorded an accrual of approximately $300 to cover costs
associated with the expected scrap and rework resulting from an isolated large
return of goods. The issue that led to the return, which the Company believes
has been resolved, was largely attributable to a problem with raw material
supplied by one of our vendors. In addition to this accrual, we incurred
approximately $200 in unfavorable direct labor variance in the second quarter
associated with this event. During the twelve months ended March 31, 2008, the
Chinese RMB exchange rate relative to the US dollar appreciated approximately 9%
as compared to the same period last year. This translates to net amount of
approximately $1,674 in annualized margin erosion. Also negatively impacting
margins was lower absorption of manufacturing overhead in the fourth quarter
relative to sales mainly due of the reduction of finished goods inventory and
production levels.




 



34







 




Gross
Margin.
  Overall, gross margin (gross profit as a percent of net
sales) decreased to 41.8% for the fiscal year ended March 31, 2008 from 43.7%
for the fiscal year ended March 31, 2007.



The
decline in margin was primarily due to several factors including product sales
mix, a discrete quality event discussed below and the strengthening of the
Chinese RMB, as well as unfavorable absorption of manufacturing overhead. The
unfavorable product sales mix is largely associated with increased sales to our
largest customer, which primarily serves the automotive market and carries a
lower gross margin than our average. During the second quarter ended September
30, 2007, the Company recorded an accrual of approximately $300 to cover costs
associated with the expected scrap and rework resulting from an isolated large
return of goods. The issue that led to the return, which the Company believes
has been resolved, was largely attributable to a problem with raw material
supplied by one of our vendors. In addition to this accrual, we incurred
approximately $200 in unfavorable direct labor variance in the second quarter
associated with this event. During the twelve months ended March 31, 2008, the
Chinese RMB exchange rate relative to the US dollar appreciated approximately 9%
as compared to the same period last year. This translates to net amount of
approximately $1,674 in annualized margin erosion. Also negatively impacting
margins was lower absorption of manufacturing overhead in the fourth quarter
relative to sales mainly due of the reduction of finished goods inventory and
production levels.




 



34







 




These excerpts taken from the MEAS 10-Q filed Feb 4, 2009.
Gross Margin:  Gross margin (gross profit as a percent of net sales) improved to approximately 43.7% for the quarter ended December 31, 2008 from 41.9% during the quarter ended December 31, 2007. The increase in margin is due to several factors, including product sales mix and certain cost control measures, as well as a favorable inventory adjustment related to Intersema for approximately $500, which is partially offset by the strengthening of the Chinese renminbi (“RMB”) and higher costs resulting from increased prices for certain raw materials. The more favorable product sales mix is largely associated with lower proportion of sales of lower gross margin products. This would include sales to our largest customer, Sensata, which primarily serves the automotive market and carries a lower gross margin than our average.  The average RMB exchange rate relative to the U.S. dollar for the three months ended December 31, 2008 appreciated approximately 7.4% as compared to the same period last year. This translates to approximately $1,376 in annualized margin erosion.

On a continuing basis, our gross margin may vary due to product mix, sales volume, availability of raw materials, foreign currency exchange rates, and other factors.

Gross Margin:  Gross margin (gross profit as a percent of net sales) increased to approximately 42.9% for the nine months ended December 31, 2008 from 42.1% during the nine months ended December 31, 2007. The improvement in gross margin is due to several factors, including product sales mix and various cost control measures, partially offset by the strengthening of the Chinese RMB. The more favorable product sales mix is largely associated with decreased proportion of sales of lower gross margin products. This would include sales to our largest customer, Sensata, which primarily serves the automotive market and carries a lower gross margin than our average.   During the first part of fiscal 2009, there had also been an adverse impact on margins due to increases in certain costs reflecting the pervasive impact on costs associated with higher prices for certain commodities, especially during the first two quarters of fiscal 2009.  The average Chinese RMB exchange rate relative to the U.S. dollar for the nine months ended December 31, 2008 appreciated approximately 8.8% as compared to the same period last year. This translates to approximately $1,637 in annualized margin erosion.

On a continuing basis, our gross margin may vary due to product mix, sales volume, availability of raw materials, foreign currency exchange rates, and other factors.

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