NEW YORK ( TheStreet) -- Interphase (Nasdaq: INPH) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.
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- 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 Computers & Peripherals industry. The net income has significantly decreased by 502.2% when compared to the same quarter one year ago, falling from $0.23 million to -$0.93 million.
- The share price of INTERPHASE CORP has not done very well: it is down 24.18% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, INTERPHASE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- 49.40% is the gross profit margin for INTERPHASE CORP which we consider to be strong. Regardless of INPH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, INPH's net profit margin of -23.10% significantly underperformed when compared to the industry average.
- INTERPHASE 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. 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, INTERPHASE CORP continued to lose money by earning -$0.08 versus -$1.23 in the prior year.
-- Written by a member of TheStreet Ratings Staff