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NEW YORK (

TheStreet

)

-- Rudolph Technologies

(Nasdaq:

RTEC

) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.

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Highlights from the ratings report include:

  • RTEC's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 6.27, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • RUDOLPH TECHNOLOGIES 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, RUDOLPH TECHNOLOGIES INC increased its bottom line by earning $1.33 versus $0.78 in the prior year. For the next year, the market is expecting a contraction of 82.0% in earnings ($0.24 versus $1.33).
  • 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 96.2% when compared to the same quarter one year ago, falling from $6.66 million to $0.25 million.

Rudolph Technologies, Inc. engages in the design, development, and manufacture of process control defect inspection, advanced packaging lithography, metrology, and process control software systems used by microelectronics device manufacturers. Rudolph has a market cap of $343.2 million and is part of the technology sector and electronics industry. Shares are down 22.2% year to date as of the close of trading on Thursday.

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