Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- Attunity (Nasdaq: ATTU) 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 weak operating cash flow.
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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 Software industry. The net income has significantly decreased by 984.0% when compared to the same quarter one year ago, falling from -$0.13 million to -$1.36 million.
- Net operating cash flow has significantly decreased to $0.20 million or 82.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- 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 Software industry and the overall market, ATTUNITY LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ATTUNITY LTD is currently very high, coming in at 93.40%. Regardless of ATTU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ATTU's net profit margin of -29.55% significantly underperformed when compared to the industry average.
- ATTU, with its decline in revenue, underperformed when compared the industry average of 1.5%. Since the same quarter one year prior, revenues fell by 25.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
-- Written by a member of TheStreet Ratings Staff