"During the second quarter, our risk-based businesses produced a lower level of gross margin than expected, and we also experienced a continuation of the pressures we saw in the first quarter," the chief executive, Stephen J. Hemsley, said in a statement.
One report showed that intra-operative assessment of gross margins resulted in a 25% final margin positive rate [ 1].
The men's apparel marketer Haggar Corporation said today that it had lowered its third-quarter earnings forecast because of lower gross margins and selling of seasonal inventory at reduced prices.
The sequential decline in Nokia Siemens Networks' non-IFRS operating margin in the first quarter 2012 primarily reflected the lower seasonal net sales, lower gross margin and flat operating expenses.
Our cost of sales should be much lower, and gross margin higher, than in this projection.
Our cost of sales may be much lower, and gross margin higher, than in this projection.
"The decline in margin was a result of lower gross margins in its BioDiscovery division, which experienced unfavorable revenue mix and manufacturing variances".
Also, while the company had higher sales of desktop integrated graphics processors, these chips carry lower gross margin, because they are new with lower yields.
Likewise, developments on mobile are said to be gaining traction (now around 20% of group, albeit at much lower gross margin).
Those factors include a highly competitive mobile environment, especially at the high end, a shift toward lower gross margin products and the declining value of the euro.
A slowdown in the introduction of higher-profit generic drugs, combined with an increase in promotional costs, lowered Walgreen?s gross margins by 1.3 percentage points in Q1 2014.
