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 Technology sector as a whole closed the day down 1.7% versus the S&P 500, which was down 1.7%. Laggards within the Technology sector included

ATRM Holdings

(

ATRM

), down 7.6%,

Authentidate

(

ADAT

), down 8.4%,

Otelco

(

OTEL

), down 4.5%,

TigerLogic

(

TIGR

), down 1.8% and

Bridgeline Digital

(

BLIN

), down 2.3%.

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

Bridgeline Digital

(

BLIN

) is one of the companies that pushed the Technology sector lower today. Bridgeline Digital 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 telecommunications industry. 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

TheStreet Recommends

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.

At the close,

Authentidate

(

ADAT

) 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 telecommunications industry. Shares are down 34.0% year-to-date as of the close of trading on Monday.

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

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.

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.

ATRM Holdings

(

ATRM

) was another company that pushed the Technology sector lower today. ATRM Holdings was down $0.26 (7.6%) to $3.14 on light volume. Throughout the day, 561 shares of ATRM Holdings exchanged hands as compared to its average daily volume of 4,400 shares. The stock ranged in price between $3.14-$3.17 after having opened the day at $3.17 as compared to the previous trading day's close of $3.40.

ATRM Holdings has a market cap of $4.0 million and is part of the telecommunications industry. Shares are up 16.8% year-to-date as of the close of trading on Monday.

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