FalconStor Software (FalconStor Software) Operating Income : $-0.25 Mil (TTM As of Jun. 2023)

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What is FalconStor Software Operating Income?

FalconStor Software's Operating Income for the three months ended in Jun. 2023 was $-0.19 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2023 was $-0.25 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. FalconStor Software's Operating Income for the three months ended in Jun. 2023 was $-0.19 Mil. FalconStor Software's Revenue for the three months ended in Jun. 2023 was $2.37 Mil. Therefore, FalconStor Software's Operating Margin % for the quarter that ended in Jun. 2023 was -7.93%.

FalconStor Software'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. FalconStor Software's annualized ROC % for the quarter that ended in Jun. 2023 was -11.47%. FalconStor Software's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 was -934.16%.

FalconStor Software Operating Income Historical Data

The historical data trend for FalconStor Software'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.

FalconStor Software Operating Income Chart

FalconStor Software Annual Data

Trend

Dec14

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Dec18

Dec19

Dec20

Dec21

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Dec23

Operating Income

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0.45

2.85

0.59

-1.26

1.42

FalconStor Software Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial															0.38	-0.02	-0.42	-0.19	-

FalconStor Software 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. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.25 Mil.

FalconStor Software (OTCPK:FALC) Operating Income Explanation

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

FalconStor Software's annualized ROC % for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-0.752 * ( 1 - -25.9% )	/	( (8.314	+	8.196)	/ 2 )
=	-0.946768	/	8.255
=	-11.47 %

where

	Invested Capital		(Q: Mar. 2023 )
=	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	))
=	9.517	-	1.657	-	( 1.839	-	max(0, 5.365	-	4.911	+	1.839	))
=	8.314

	Invested Capital		(Q: Jun. 2023 )
=	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	))
=	9.218	-	1.796	-	( 1.286	-	max(0, 5.158	-	4.384	+	1.286	))
=	8.196

Note: The Operating Income data used here is four times the quarterly (Jun. 2023) data.

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

FalconStor Software's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jun. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Mar. 2023		Q: Jun. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-0.752	/	( ( (0.095 + max(-2.422, 0))	+	(0.066 + max(-2.354, 0)) )	/	2 )
=	-0.752	/	( ( 0.095	+	0.066 )	/	2 )
=	-0.752	/	0.0805
=	-934.16 %

where Working Capital is:

	Working Capital		(Q: Mar. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.79	+	0	+	1.034)	-	(1.657	+	3.59	+	-0.00099999999999945)
=	-2.422

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1.919	+	0	+	0.86)	-	(1.796	+	3.337	+	0)
=	-2.354

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2023) EBIT data.

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

FalconStor Software's Operating Margin % for the quarter that ended in Jun. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	-0.188	/	2.371
	=	-7.93 %

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.

FalconStor Software Operating Income Related Terms

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

FalconStor Software (FalconStor Software) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » FalconStor Software Inc (OTCPK:FALC) » Definitions » Operating Income

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Address

501 Congress Avenue, Suite 150, Austin, TX, USA, 78701

Website

https://www.falconstor.com

FalconStor Software Inc operates in the trusted data protection software industry. The company enables enterprise customers and managed service providers to secure, migrate, and protect their data while reducing data storage and long-term retention costs. The products are offered through and supported by a worldwide network of managed service providers, systems integrators, resellers, and original equipment manufacturers. It's software products create investment protection, flexibility, and leverage of modern cloud-based technologies, through software-defined functionality that provides backup and long-term retention, and business continuity driven data replication. The company's geographical markets are the Americas, Asia Pacific, Europe, Middle East, Africa and Others.

Executives

Robert Todd Brooks	officer: Chief Executive Officer	C/O NOVATION COMPANIES, INC., 2 HUNTINGTON QUADRANGLE, SUITE 2S01, MELVILLE NY 11747
Vincent Sita	officer: Chief Financial Officer	C/O FALCONSTOR SOFTWARE, INC., 701 BRAZOS STREET, SUITE 400, AUSTIN TX 78701
Michael P Kelly	director
Brad Wolfe	officer: Chief Financial Officer	C/O FALCONSTOR SOFTWARE, INC., 701 BRAZOS STREET, SUITE 400, AUSTIN TX 78701
Hcp-fva, Llc	director, 10 percent owner	17 STATE STREET, SUITE 3230, NEW YORK NY 10004
Esw Capital, Llc	10 percent owner	401 CONGRESS AVENUE, SUITE 2650, AUSTIN TX 78701
Joseph Liemandt	10 percent owner	5001 PLAZA ON THE LAKE, AUSTIN TX 78746
Patrick Mcclain	officer: EVP, CFO & Treasurer	C/O FALCONSTOR SOFTWARE, INC., 2 HUNTINGTON QUADRANGLE, SUITE 2S01, MELVILLE NY 11747
Todd Oseth	officer: CEO & President	C/O MCDATA CORPORATION, 380 INTERLOCKEN CRESCENT, BROOMFIELD CO 80021
William D Miller	director
Barry Rudolph	director	1351 S SUNSET STREET, LONGMONT CO 80501
Daniel Murale	officer: VP of Finance & Interim CFO	C/O FALCONSTOR SOFTWARE, INC., 2 HUNTINGTON QUADRANGLE, SUITE 2S01, MELVILLE NY 11747
Gary Quinn	officer: COO and EVP	C/O COMPUTER ASSOCIATES INTER INC, ONE COMPUTER ASSOC PLAZA, ISLANDIA NY 11749
Alan Komet	officer: EVP Worldwide Field Operations	2 HUNTINGTON QUADRANGLE, MELVILLE NY 11747
Hale Martin M Jr	director, 10 percent owner