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NEW YORK (

TheStreet

)

-- Advanced Analogic Technologies

(Nasdaq:

AATI

) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, AATI's share price has jumped by 46.19%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • AATI 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 5.93, which clearly demonstrates the ability to cover short-term cash needs.
  • AATI, with its decline in revenue, underperformed when compared the industry average of 18.3%. Since the same quarter one year prior, revenues fell by 11.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 184.4% when compared to the same quarter one year ago, falling from -$1.29 million to -$3.68 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, ADVANCED ANALOGIC TECH's return on equity significantly trails that of both the industry average and the S&P 500.

Advanced Analogic Technologies Incorporated engages in the development of advanced power management semiconductors. It offers a range of analog and mixed-signal circuits that are used in system design. Advanced Analogic has a market cap of $255.3 million and is part of the

TheStreet Recommends

technology

sector and

electronics

industry. Shares are up 43.9% year to date as of the close of trading on Thursday.

You can view the full

Advanced Analogic Ratings Report

or get investment ideas from our

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