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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 Software & Services industry as a whole closed the day up 0.1% versus the S&P 500, which was down 0.3%. Laggards within the Computer Software & Services industry included

TigerLogic

(

TIGR

), down 6.2%,

GSE Systems

(

GVP

), down 2.9%,

Astea International

(

ATEA

), down 4.2%,

Issuer Direct

(

TheStreet Recommends

ISDR

), down 7.7% and

Asure Software

(

ASUR

), down 2.2%.

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

ServiceSource International

(

SREV

) is one of the companies that pushed the Computer Software & Services industry lower today. ServiceSource International was down $0.14 (2.8%) to $4.92 on light volume. Throughout the day, 372,687 shares of ServiceSource International exchanged hands as compared to its average daily volume of 1,183,300 shares. The stock ranged in price between $4.90-$5.11 after having opened the day at $5.02 as compared to the previous trading day's close of $5.06.

ServiceSource International, Inc. provides recurring revenue management, maintenance, support, and subscription for technology and technology-enabled healthcare and life sciences companies. ServiceSource International has a market cap of $412.2 million and is part of the technology sector. Shares are down 39.6% year-to-date as of the close of trading on Tuesday. Currently there are 4 analysts who rate ServiceSource International a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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

TheStreet Ratings rates

ServiceSource International

as a

sell

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

Highlights from TheStreet Ratings analysis on SREV 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 IT Services industry. The net income has significantly decreased by 79.2% when compared to the same quarter one year ago, falling from -$10.46 million to -$18.74 million.
  • The gross profit margin for SERVICESOURCE INTL INC is currently lower than what is desirable, coming in at 33.30%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -28.04% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $2.01 million or 65.76% 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 42.26%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 64.28% 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 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 IT Services industry and the overall market, SERVICESOURCE INTL 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:

ServiceSource International 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,

Asure Software

(

ASUR

) was down $0.13 (2.2%) to $5.90 on light volume. Throughout the day, 254 shares of Asure Software exchanged hands as compared to its average daily volume of 8,700 shares. The stock ranged in price between $5.90-$5.90 after having opened the day at $5.90 as compared to the previous trading day's close of $6.03.

Asure Software, Inc. provides cloud-based software-as-a-service (SaaS) time and labor management, and workspace management solutions worldwide. Asure Software has a market cap of $36.4 million and is part of the technology sector. Shares are up 7.4% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Asure Software a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates

Asure Software

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.

Highlights from TheStreet Ratings analysis on ASUR go as follows:

  • ASUR's revenue growth has slightly outpaced the industry average of 7.7%. Since the same quarter one year prior, revenues slightly increased by 9.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ASURE SOFTWARE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ASURE SOFTWARE INC continued to lose money by earning -$0.31 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($0.09 versus -$0.31).
  • The gross profit margin for ASURE SOFTWARE INC is currently very high, coming in at 79.03%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -8.12% is in-line with the industry average.
  • Net operating cash flow has declined marginally to $0.07 million or 6.57% 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.
  • The debt-to-equity ratio is very high at 4.08 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. 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.

You can view the full analysis from the report here:

Asure Software 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.

GSE Systems

(

GVP

) was another company that pushed the Computer Software & Services industry lower today. GSE Systems was down $0.05 (2.9%) to $1.70 on light volume. Throughout the day, 5,971 shares of GSE Systems exchanged hands as compared to its average daily volume of 13,300 shares. The stock ranged in price between $1.65-$1.73 after having opened the day at $1.73 as compared to the previous trading day's close of $1.75.

GSE Systems, Inc. provides simulation, educational, and engineering solutions and services to the nuclear and fossil electric utility industry, and the chemical and petrochemical industries worldwide. GSE Systems has a market cap of $31.8 million and is part of the technology sector. Shares are up 9.4% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates

GSE Systems

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and weak operating cash flow.

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 GVP go as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, GSE SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GSE SYSTEMS INC is currently lower than what is desirable, coming in at 29.73%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.32% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$2.51 million or 93.58% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • GSE SYSTEMS INC reported significant earnings per share improvement in the most recent quarter compared to 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, GSE SYSTEMS INC swung to a loss, reporting -$0.58 versus $0.06 in the prior year.
  • GVP, with its decline in revenue, underperformed when compared the industry average of 7.7%. Since the same quarter one year prior, revenues slightly dropped by 3.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here:

GSE 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.