- The revenue growth greatly exceeded the industry average of 6.4%. Since the same quarter one year prior, revenues rose by 38.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, SOFO's share price has jumped by 72.85%, exceeding the performance of the broader market during that same time frame. Although SOFO had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- Despite currently having a low debt-to-equity ratio of 0.44, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.89 is weak.
- 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 3125.9% when compared to the same quarter one year ago, falling from -$0.03 million to -$0.87 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 Software industry and the overall market, SONIC FOUNDRY INC's return on equity significantly trails that of both the industry average and the S&P 500.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. The Computer Software & Services industry as a whole closed the day down 0.8% versus the S&P 500, which was unchanged. Laggards within the Computer Software & Services industry included CounterPath ( CPAH), down 3.2%, Cover-All Technologies ( COVR), down 2.7%, Intelligent Systems ( INS), down 5.8%, MGT Capital Investments ( MGT), down 2.2% and Sonic Foundry ( SOFO), down 4.3%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Sonic Foundry ( SOFO) is one of the companies that pushed the Computer Software & Services industry lower today. Sonic Foundry was down $0.50 (4.3%) to $11.00 on average volume. Throughout the day, 7,253 shares of Sonic Foundry exchanged hands as compared to its average daily volume of 7,400 shares. The stock ranged in price between $11.00-$11.21 after having opened the day at $11.04 as compared to the previous trading day's close of $11.50. Sonic Foundry, Inc. provides enterprise solutions and services for the Web communications market in the United States, Europe, the Middle East, Asia, and internationally. Sonic Foundry has a market cap of $47.2 million and is part of the technology sector. Shares are up 18.3% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Sonic Foundry a buy, no analysts rate it a sell, and none rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Sonic Foundry as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share. Highlights from TheStreet Ratings analysis on SOFO go as follows: