NEW YORK ( TheStreet) -- IntraLinks Holdings (NYSE: IL) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
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- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Internet Software & Services industry average. The net income increased by 18.4% when compared to the same quarter one year prior, going from -$5.58 million to -$4.56 million.
- IL's revenue growth trails the industry average of 31.4%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- INTRALINKS HOLDINGS INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INTRALINKS HOLDINGS INC reported poor results of -$0.32 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings ($0.13 versus -$0.32).
- The gross profit margin for INTRALINKS HOLDINGS INC is currently very high, coming in at 77.37%. Regardless of IL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IL's net profit margin of -8.27% significantly underperformed when compared to the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, INTRALINKS HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.