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 Technology sector as a whole closed the day up 0.9% versus the S&P 500, which was unchanged. Laggards within the Technology sector included

Astea International

(

ATEA

), down 2.5%,

CollabRx

(

CLRX

), down 6.4%,

Nortech Systems

(

NSYS

), down 2.7%,

Glowpoint

(

GLOW

), down 1.5% and

Internet Initiative Japan

(

IIJI

), down 3.9%.

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

Internet Initiative Japan

(

IIJI

) is one of the companies that pushed the Technology sector lower today. Internet Initiative Japan was down $0.37 (3.9%) to $9.19 on heavy volume. Throughout the day, 8,354 shares of Internet Initiative Japan exchanged hands as compared to its average daily volume of 4,100 shares. The stock ranged in price between $9.13-$9.33 after having opened the day at $9.33 as compared to the previous trading day's close of $9.56.

Internet Initiative Japan Inc., together with its subsidiaries, offers Internet connectivity, WAN, outsourcing, and systems integration services primarily in Japan. The company operates in two segments: Network Services and Systems Integration Business, and ATM Operation Business. Internet Initiative Japan has a market cap of $914.3 million and is part of the computer software & services industry. Shares are down 25.6% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Internet Initiative Japan

TheStreet Recommends

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on IIJI go as follows:

  • The revenue growth significantly trails the industry average of 43.6%. Since the same quarter one year prior, revenues slightly increased by 2.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.20 is sturdy.
  • 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 49.6% when compared to the same quarter one year ago, falling from $9.61 million to $4.85 million.
  • The gross profit margin for INTERNET INITIATIVE JAPAN INC is currently lower than what is desirable, coming in at 26.53%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.78% significantly trails the industry average.

You can view the full analysis from the report here:

Internet Initiative Japan Ratings Report

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At the close,

Glowpoint

(

GLOW

) was down $0.02 (1.5%) to $1.28 on average volume. Throughout the day, 33,015 shares of Glowpoint exchanged hands as compared to its average daily volume of 26,600 shares. The stock ranged in price between $1.24-$1.30 after having opened the day at $1.27 as compared to the previous trading day's close of $1.30.

Glowpoint has a market cap of $46.3 million and is part of the computer software & services industry. Shares are down 5.8% year-to-date as of the close of trading on Wednesday.

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

CollabRx

(

CLRX

) was another company that pushed the Technology sector lower today. CollabRx was down $0.07 (6.4%) to $1.01 on average volume. Throughout the day, 32,072 shares of CollabRx exchanged hands as compared to its average daily volume of 25,100 shares. The stock ranged in price between $0.94-$1.05 after having opened the day at $1.03 as compared to the previous trading day's close of $1.08.

CollabRx, Inc. provides cloud-based expert systems to inform healthcare decision-making. The company's cloud-based expert systems provide clinical knowledge to institutions, physicians, researchers, and patients for genomics-based medicine in cancer. CollabRx has a market cap of $3.2 million and is part of the computer software & services industry. Shares are down 71.6% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates CollabRx a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates

CollabRx

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, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 CLRX go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Health Care Technology industry. The net income has significantly decreased by 56.6% when compared to the same quarter one year ago, falling from -$0.80 million to -$1.25 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, COLLABRX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$0.73 million or 19.96% 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 75.59%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 74.28% 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.
  • COLLABRX 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, COLLABRX INC continued to lose money by earning -$1.78 versus -$2.15 in the prior year. For the next year, the market is expecting a contraction of 3.9% in earnings (-$1.85 versus -$1.78).

You can view the full analysis from the report here:

CollabRx 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.