TSC Ratings' Upgrades, Downgrades

Each business day, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

However, the rating does not incorporate all of the factors that can alter a stock's performance. For example, it doesn't always factor in recent corporate or industry events that could affect the stock price, nor does it include recent technology developments and competitive dynamics that may affect the company.

For those reasons, we believe a rating alone cannot tell the whole story, and that it should be part of an investor's overall research.

The following ratings changes were generated on June 13.

CommVault Systems(CVLT Quote), which provides data and information management software applications and related services, has been upgraded to hold. The revenue growth greatly exceeded the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 33%. CommVault has no debt to speak of, therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. The gross profit margin for CommVault is currently very high, coming in at 87%. It has increased from the same quarter the previous year. They have a net profit margin of 11% significantly trailing the industry average. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CommVault reported lower earnings of 47 cents versus $1.37 in the prior year. The net income has significantly decreased by 88% when compared to the same quarter one year ago, falling from $51.85 million to $6.19 million. CommVault Systems has been rated sell since March 2008.