NEW YORK ( TheStreet) -- Accelr8 Technology Corporation (AMEX: AXK) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity. Highlights from the ratings report include:
- ACCELR8 TECHNOLOGY CORP has exprienced 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, ACCELR8 TECHNOLOGY CORP swung to a loss, reporting -$0.03 versus $0.06 in the prior year.
- 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 116.5% when compared to the same quarter one year ago, falling from $1.80 million to -$0.30 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 Life Sciences Tools & Services industry and the overall market, ACCELR8 TECHNOLOGY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ACCELR8 TECHNOLOGY CORP is currently very high, coming in at 100.00%. AXK has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, AXK's net profit margin of -296.00% significantly underperformed when compared to the industry average.
- AXK, with its very weak revenue results, has greatly underperformed against the industry average of 10.7%. Since the same quarter one year prior, revenues plummeted by 95.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.