The Electronics industry as a whole closed the day down 1.5% versus the S&P 500, which was down 0.2%. Laggards within the Electronics industry included

Qualstar

(

QBAK

), down 2.0%,

Electro-Sensors

(

ELSE

), down 2.7%,

Digital Power

(

DPW

), down 3.6%,

Nortech Systems

(

NSYS

), down 1.6% and

ATRM Holdings

(

ATRM

), down 5.8%.

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

Integrated Device Technology

(

IDTI

) is one of the companies that pushed the Electronics industry lower today. Integrated Device Technology was down $1.57 (8.0%) to $18.04 on heavy volume. Throughout the day, 10,161,174 shares of Integrated Device Technology exchanged hands as compared to its average daily volume of 3,253,900 shares. The stock ranged in price between $17.49-$19.52 after having opened the day at $19.43 as compared to the previous trading day's close of $19.61.

Integrated Device Technology, Inc. designs, develops, manufactures, and markets a range of semiconductor solutions for the communications, computing, and consumer industries worldwide. It operates in two segments, Communications, and Computing and Consumer. Integrated Device Technology has a market cap of $2.8 billion and is part of the technology sector. Shares are up 0.1% year-to-date as of the close of trading on Monday. Currently there are 4 analysts who rate Integrated Device Technology a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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TheStreet Ratings rates

Integrated Device Technology

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on IDTI go as follows:

  • The revenue growth greatly exceeded the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 27.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • IDTI 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. Along with this, the company maintains a quick ratio of 8.93, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 127.27% and other important driving factors, this stock has surged by 26.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, IDTI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • INTEGRATED DEVICE TECH 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 two years. We feel that this trend should continue. During the past fiscal year, INTEGRATED DEVICE TECH INC increased its bottom line by earning $0.74 versus $0.72 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus $0.74).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 74.7% when compared to the same quarter one year prior, rising from $21.84 million to $38.16 million.

You can view the full analysis from the report here:

Integrated Device Technology Ratings Report

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At the close,

ATRM Holdings

(

ATRM

) was down $0.17 (5.8%) to $2.85 on light volume. Throughout the day, 600 shares of ATRM Holdings exchanged hands as compared to its average daily volume of 6,300 shares. The stock ranged in price between $2.85-$2.85 after having opened the day at $2.85 as compared to the previous trading day's close of $3.02.

ATRM Holdings, Inc., through its subsidiary, KBS Builders, Inc., manufactures, sells, and distributes modular buildings for commercial and residential applications in the New England states. ATRM Holdings has a market cap of $3.6 million and is part of the technology sector. Shares are up 3.9% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates

ATRM Holdings

as a

sell

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

Highlights from TheStreet Ratings analysis on ATRM go as follows:

  • ATRM HOLDINGS 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. During the past fiscal year, ATRM HOLDINGS INC reported poor results of -$8.33 versus -$1.99 in the prior year.
  • 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 657.6% when compared to the same quarter one year ago, falling from -$0.20 million to -$1.49 million.
  • Net operating cash flow has significantly decreased to -$3.02 million or 575.74% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much 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 49.12%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 160.41% 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.

You can view the full analysis from the report here:

ATRM Holdings Ratings Report

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Qualstar

(

QBAK

) was another company that pushed the Electronics industry lower today. Qualstar was down $0.02 (2.0%) to $1.04 on average volume. Throughout the day, 1,200 shares of Qualstar exchanged hands as compared to its average daily volume of 1,500 shares. The stock ranged in price between $1.02-$1.04 after having opened the day at $1.02 as compared to the previous trading day's close of $1.06.

Qualstar Corporation designs, develops, manufactures, and sells power supplies and data storage systems worldwide. It operates through two segments, Power Supplies and Tape Libraries. Qualstar has a market cap of $13.0 million and is part of the technology sector. Shares are down 19.7% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates

Qualstar

as a

sell

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

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Highlights from TheStreet Ratings analysis on QBAK go as follows:

  • The gross profit margin for QUALSTAR CORP is currently lower than what is desirable, coming in at 34.97%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, QBAK's net profit margin of -17.36% significantly underperformed when compared to the industry average.
  • QBAK has underperformed the S&P 500 Index, declining 16.27% 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'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 Computers & Peripherals industry and the overall market, QUALSTAR CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • QUALSTAR CORP 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. During the past fiscal year, QUALSTAR CORP continued to lose money by earning -$0.47 versus -$0.85 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 77.5% when compared to the same quarter one year prior, rising from -$2.17 million to -$0.49 million.

You can view the full analysis from the report here:

Qualstar Ratings Report

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