FEI, Tyson Foods: Ratings Changes

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BOSTON (TheStreet) -- TheStreet.com's stock-rating model upgraded FEI(FEIC Quote), a maker of nanoscale imaging products, to "buy."

The numbers: Second-quarter net income surged 121% to $3.7 million and earnings per share jumped 150% to 10 cents. Revenue declined 9% to $140 million. Its gross margin rose from 41% to 43% and its operating margin remained steady at 5%. The company has a strong financial position, with $335 million of cash, compared to $171 million of debt.

The stock: FEI is up 27% this year, beating the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 42, a premium to the market, but a discount to semiconductor equipment peers.

The model downgraded Premiere Global Services(PGI Quote), a provider of outsourced communications services, to "hold."

The numbers: Second-quarter net income dropped 9% to $7.8 million and earnings per share fell 7% to 13 cents, cushioned by a lower share count. Revenue declined 4% to $155 million. Its gross margin decreased from 59% to 57% and its operating margin dropped from 13% to 12%. The company has adequate liquidity, evident in its quick ratio of 1.3. A debt-to-equity ratio of 1 indicates higher-than-ideal leverage.

The stock: Premiere Global Services is down 6% this year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 13, a discount to the market and telecom service peers.

The model downgraded communications-equipment maker Sycamore Networks(SCMR Quote) to "sell."

The numbers: The company's fiscal fourth-quarter net loss widened to $35 million, or 12 cents a share, from a loss of $14 million, or 5 cents a share, in the year-earlier period. Revenue grew 14% to $17 million. Its gross margin dropped from 50% to 43% and its operating margin remained in negative territory. The company has an ideal financial position, with $621 million of cash and no debt.