Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

The Computer Hardware industry as a whole closed the day down 1.6% versus the S&P 500, which was down 1.9%. Laggards within the Computer Hardware industry included

Dataram

(

DRAM

), down 1.7%,

Lantronix

(

LTRX

), down 1.9%,

Crossroads Systems

(

CRDS

), down 4.1%,

Astro-Med

(

ALOT

), down 4.9% and

Echelon

(

ELON

), down 1.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Echelon

(

ELON

) is one of the companies that pushed the Computer Hardware industry lower today. Echelon was down $0.03 (1.8%) to $1.67 on average volume. Throughout the day, 87,953 shares of Echelon exchanged hands as compared to its average daily volume of 82,500 shares. The stock ranged in price between $1.62-$1.70 after having opened the day at $1.67 as compared to the previous trading day's close of $1.70.

Echelon has a market cap of $74.7 million and is part of the technology sector. Shares are unchanged year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Echelon a buy, no analysts rate it a sell, and 1 rates it a hold.

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At the close,

Crossroads Systems

(

CRDS

) was down $0.10 (4.1%) to $2.46 on light volume. Throughout the day, 31,720 shares of Crossroads Systems exchanged hands as compared to its average daily volume of 43,800 shares. The stock ranged in price between $2.37-$2.61 after having opened the day at $2.59 as compared to the previous trading day's close of $2.56.

Crossroads Systems, Inc. provides data protection solutions and services worldwide. Crossroads Systems has a market cap of $38.6 million and is part of the technology sector. Shares are unchanged year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Crossroads Systems

as a

sell

. The area that we feel has been the company's primary weakness has been its unimpressive growth in net income.

Highlights from TheStreet Ratings analysis on CRDS go as follows:

  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Computers & Peripherals industry average. The net income increased by 4.7% when compared to the same quarter one year prior, going from -$2.05 million to -$1.96 million.
  • The revenue fell significantly faster than the industry average of 13.5%. Since the same quarter one year prior, revenues fell by 25.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for CROSSROADS SYSTEMS INC is currently very high, coming in at 83.39%. Regardless of CRDS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CRDS's net profit margin of -73.96% significantly underperformed when compared to the industry average.
  • Net operating cash flow has increased to -$1.21 million or 42.42% when compared to the same quarter last year. In addition, CROSSROADS SYSTEMS INC has also modestly surpassed the industry average cash flow growth rate of 35.13%.
  • This stock has increased by 26.39% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in CRDS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

You can view the full analysis from the report here:

Crossroads Systems Ratings Report

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Lantronix

(

LTRX

) was another company that pushed the Computer Hardware industry lower today. Lantronix was down $0.04 (1.9%) to $2.03 on light volume. Throughout the day, 11,840 shares of Lantronix exchanged hands as compared to its average daily volume of 19,000 shares. The stock ranged in price between $2.00-$2.10 after having opened the day at $2.09 as compared to the previous trading day's close of $2.07.

Lantronix, Inc. designs, develops, markets, and sells networking and communications products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Lantronix has a market cap of $27.9 million and is part of the technology sector. Shares are unchanged year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Lantronix a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates

Lantronix

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

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Highlights from TheStreet Ratings analysis on LTRX go as follows:

  • The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • LANTRONIX INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LANTRONIX INC continued to lose money by earning -$0.06 versus -$0.19 in the prior year. This year, the market expects an improvement in earnings (-$0.04 versus -$0.06).
  • LTRX's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Communications Equipment industry average. The net income increased by 1.9% when compared to the same quarter one year prior, going from -$0.27 million to -$0.26 million.
  • Net operating cash flow has significantly decreased to $0.21 million or 76.04% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here:

Lantronix Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.