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.

The Computer Software & Services industry as a whole closed the day down 1.6% versus the S&P 500, which was down 1.7%. Laggards within the Computer Software & Services industry included

Authentidate

(

ADAT

), down 8.4%,

TigerLogic

(

TIGR

), down 1.8%,

Bridgeline Digital

(

BLIN

), down 2.3%,

QAD

(

QADB

), down 3.4% and

Formula Systems (1985

(

FORTY

), down 1.6%.

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

QAD

(

QADB

) is one of the companies that pushed the Computer Software & Services industry lower today. QAD was down $0.65 (3.4%) to $18.33 on light volume. Throughout the day, 304 shares of QAD exchanged hands as compared to its average daily volume of 1,400 shares. The stock ranged in price between $18.22-$18.87 after having opened the day at $18.22 as compared to the previous trading day's close of $18.98.

QAD Inc. provides enterprise software solutions for manufacturers in the automotive, consumer products, food and beverage, high technology, industrial products, and life sciences industries Worldwide. QAD has a market cap of $60.6 million and is part of the technology sector. Shares are up 1.0% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate QAD a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates

QAD

as a

buy

. 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, reasonable valuation levels, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from TheStreet Ratings analysis on QADB go as follows:

  • QADB's revenue growth has slightly outpaced the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 12.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • QADB's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.04, which illustrates the ability to avoid short-term cash problems.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 148.4% when compared to the same quarter one year prior, rising from $2.05 million to $5.09 million.
  • Net operating cash flow has significantly increased by 70.55% to -$0.43 million when compared to the same quarter last year. In addition, QAD INC has also vastly surpassed the industry average cash flow growth rate of -1.08%.

TheStreet Recommends

You can view the full analysis from the report here:

QAD 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,

Bridgeline Digital

(

BLIN

) was down $0.01 (2.3%) to $0.48 on light volume. Throughout the day, 7,827 shares of Bridgeline Digital exchanged hands as compared to its average daily volume of 49,100 shares. The stock ranged in price between $0.47-$0.50 after having opened the day at $0.47 as compared to the previous trading day's close of $0.49.

Bridgeline Digital, Inc. develops iAPPS Web engagement management product platform in the United States. Its iAPPS platform enables companies and developers to create Websites, Web applications, and online stores. Bridgeline Digital has a market cap of $10.8 million and is part of the technology sector. Shares are up 7.7% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Bridgeline Digital 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

Bridgeline Digital

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on BLIN 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 Internet Software & Services industry. The net income has significantly decreased by 171.6% when compared to the same quarter one year ago, falling from -$0.78 million to -$2.11 million.
  • 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 Internet Software & Services industry and the overall market, BRIDGELINE DIGITAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.15%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 150.00% 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.
  • BRIDGELINE DIGITAL INC 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, BRIDGELINE DIGITAL INC reported poor results of -$0.31 versus -$0.23 in the prior year. This year, the market expects an improvement in earnings (-$0.26 versus -$0.31).
  • The revenue fell significantly faster than the industry average of 18.5%. Since the same quarter one year prior, revenues fell by 23.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here:

Bridgeline Digital 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.

Authentidate

(

ADAT

) was another company that pushed the Computer Software & Services industry lower today. Authentidate was down $0.03 (8.4%) to $0.30 on heavy volume. Throughout the day, 445,133 shares of Authentidate exchanged hands as compared to its average daily volume of 53,100 shares. The stock ranged in price between $0.29-$0.38 after having opened the day at $0.32 as compared to the previous trading day's close of $0.33.

Authentidate Holding Corp. provides Web-based software applications, and telehealth products and services in the United States. Authentidate has a market cap of $25.9 million and is part of the technology sector. Shares are down 34.0% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates

Authentidate

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity 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 ADAT 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 Health Care Technology industry. The net income has significantly decreased by 32.4% when compared to the same quarter one year ago, falling from -$1.58 million to -$2.09 million.
  • 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 Health Care Technology industry and the overall market, AUTHENTIDATE HOLDING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • ADAT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 45.05%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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 revenue fell significantly faster than the industry average of 22.7%. Since the same quarter one year prior, revenues slightly dropped by 7.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ADAT 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. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.38 is very weak and demonstrates a lack of ability to pay short-term obligations.

You can view the full analysis from the report here:

Authentidate 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.