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

.

NEW YORK (

TheStreet

)

-- Performance Technologies

(Nasdaq:

PTIX

) has been upgraded by TheStreet Ratings from sell to hold. 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 and solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

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Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 28.2%. Since the same quarter one year prior, revenues rose by 41.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PTIX 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 3.10, which clearly demonstrates the ability to cover short-term cash needs.
  • 47.46% is the gross profit margin for PERFORMANCE TECHNOLOGIES INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, PTIX's net profit margin of 2.71% is significantly lower than the industry average.
  • PERFORMANCE TECHNOLOGIES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, PERFORMANCE TECHNOLOGIES INC reported poor results of -$0.64 versus -$0.11 in the prior year.
  • 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 Communications Equipment industry and the overall market, PERFORMANCE TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.

Performance Technologies, Incorporated provides network communications solutions worldwide. Performance has a market cap of $31.1 million and is part of the technology sector and computer hardware industry. Shares are up 269.4% year to date as of the close of trading on Wednesday.

You can view the full

Performance Ratings Report

or get investment ideas from our

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