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 0.9% versus the S&P 500, which was down 1.3%. Laggards within the Computer Hardware industry included

Interphase

(

INPH

), down 1.9%,

Mad Catz Interactive

(

MCZ

), down 5.7%,

Crossroads Systems

(

CRDS

), down 11.6%,

Echelon

(

ELON

), down 9.5% and

SMART Technologies

(

SMT

), down 2.5%.

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

Crossroads Systems

(

CRDS

) is one of the companies that pushed the Computer Hardware industry lower today. Crossroads Systems was down $0.29 (11.6%) to $2.22 on heavy volume. Throughout the day, 496,973 shares of Crossroads Systems exchanged hands as compared to its average daily volume of 40,700 shares. The stock ranged in price between $2.18-$2.29 after having opened the day at $2.28 as compared to the previous trading day's close of $2.51.

Crossroads Systems, Inc. provides data protection solutions and services worldwide. Crossroads Systems has a market cap of $39.8 million and is part of the technology sector. Shares are up 0.4% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

Crossroads Systems

as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CRDS go as follows:

  • CRDS has underperformed the S&P 500 Index, declining 21.14% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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 13.9%. 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 35.51%.

You can view the full analysis from the report here:

Crossroads Systems 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.

At the close,

Mad Catz Interactive

(

MCZ

) was down $0.02 (5.7%) to $0.42 on heavy volume. Throughout the day, 288,525 shares of Mad Catz Interactive exchanged hands as compared to its average daily volume of 164,300 shares. The stock ranged in price between $0.40-$0.44 after having opened the day at $0.43 as compared to the previous trading day's close of $0.44.

Mad Catz Interactive, Inc. designs, manufactures, markets, sells, and distributes various entertainment products in the United States and internationally. Mad Catz Interactive has a market cap of $28.4 million and is part of the technology sector. Shares are up 3.6% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

Mad Catz Interactive

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, generally disappointing historical performance in the stock itself, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on MCZ go as follows:

  • The debt-to-equity ratio of 1.29 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.45, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has decreased to -$3.16 million or 16.77% when compared to the same quarter last year. Despite a decrease in cash flow MAD CATZ INTERACTIVE INC is still fairing well by exceeding its industry average cash flow growth rate of -66.24%.
  • MCZ has underperformed the S&P 500 Index, declining 10.21% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for MAD CATZ INTERACTIVE INC is currently lower than what is desirable, coming in at 31.96%. Regardless of MCZ's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -4.10% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Household Durables industry and the overall market, MAD CATZ INTERACTIVE INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

Mad Catz Interactive 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.

Interphase

(

INPH

) was another company that pushed the Computer Hardware industry lower today. Interphase was down $0.04 (1.9%) to $2.12 on average volume. Throughout the day, 9,119 shares of Interphase exchanged hands as compared to its average daily volume of 11,700 shares. The stock ranged in price between $2.05-$2.22 after having opened the day at $2.16 as compared to the previous trading day's close of $2.16.

Interphase Corporation, an information and communications technology company, provides connectivity, interworking, and packet processing solutions in the Pacific Rim, North America, and Europe. Interphase has a market cap of $18.4 million and is part of the technology sector. Shares are down 3.1% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates

Interphase

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins and generally disappointing historical performance in the stock itself.

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

Highlights from TheStreet Ratings analysis on INPH go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 1222.4% when compared to the same quarter one year ago, falling from $0.08 million to -$0.85 million.
  • The gross profit margin for INTERPHASE CORP is currently lower than what is desirable, coming in at 33.55%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -20.25% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 46.18%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1200.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, INTERPHASE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • INTERPHASE CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, INTERPHASE CORP continued to lose money by earning -$0.39 versus -$0.54 in the prior year.

You can view the full analysis from the report here:

Interphase 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.