It then allegedly turned around and booked those hardware sales as high-margin software sales.
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There is a bright future for companies that choose to focus on being the best at treating just a few diseases, which offer high-margin, if not high-volume, sales.
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Revenue, for example, can be extremely high, but a paltry gross margin would wipe away the positive benefits of high sales volume.
Growing sales of high-margin servers and services led the Round Rock, Texas-based company to stronger than expected earnings for the quarter ending in April, even as sagging desktop PC sales contributed to lower-than-expected quarterly revenues.
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Sales of its high-margin, gas-guzzling SUVs, like the Explorer and Expedition, are off 28% so far this year.
It shattered GM, Ford and DaimlerChrysler (nyse: DCX - news - people ) by shooting up gas prices, which cratered sales of their high-margin SUVs.
The company blamed slower-than-expected sales of wireless phones and other high margin goods.
This is because if high sales are only maintained by producing low margin vehicles and offer incentives then manufacturers have little interest in expand production.
However, I am pleased with the progress we are making in improving and driving growth in our high-margin Signature platform, which generated its third consecutive quarter of sales growth and our pre-paid mobility business, which included the launch of the RadioShack branded line of phones.
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The proceeds from the sales are specifically to be directed towards executing its drilling programs and major high-margin growth projects.
The margin boost was mainly attributable to strong sales growth, which kept revenue per square foot high.
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