3 Stocks Pushing The Computer Hardware Industry Lower

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The Computer Hardware industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.7%. Laggards within the Computer Hardware industry included Video Display ( VIDE), down 1.5%, Interphase ( INPH), down 7.4%, Astro-Med ( ALOT), down 1.7%, Concurrent Computer ( CCUR), down 2.4% and China TechFaith Wireless Comm Tech ( CNTF), down 2.2%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

China TechFaith Wireless Comm Tech ( CNTF) is one of the companies that pushed the Computer Hardware industry lower today. China TechFaith Wireless Comm Tech was down $0.03 (2.2%) to $1.36 on light volume. Throughout the day, 82,656 shares of China TechFaith Wireless Comm Tech exchanged hands as compared to its average daily volume of 163,600 shares. The stock ranged in price between $1.30-$1.40 after having opened the day at $1.40 as compared to the previous trading day's close of $1.39.

China Techfaith Wireless Communication Technology Limited is engaged in the original design, development, and sale of mobile handsets in the People's Republic of China and internationally. China TechFaith Wireless Comm Tech has a market cap of $74.1 million and is part of the technology sector. Shares are down 16.8% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates China TechFaith Wireless Comm Tech as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on CNTF go as follows:

  • 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 1045.4% when compared to the same quarter one year ago, falling from $0.31 million to -$2.89 million.
  • 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 Computers & Peripherals industry and the overall market, CHINA TECHFAITH WIRELESS-ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA TECHFAITH WIRELESS-ADR is currently extremely low, coming in at 9.49%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -10.80% is significantly below that of the industry average.
  • CNTF, with its decline in revenue, slightly underperformed the industry average of 2.4%. Since the same quarter one year prior, revenues slightly dropped by 6.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • CHINA TECHFAITH WIRELESS-ADR has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, CHINA TECHFAITH WIRELESS-ADR continued to lose money by earning -$0.05 versus -$0.06 in the prior year.

You can view the full analysis from the report here: China TechFaith Wireless Comm Tech Ratings Report

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At the close, Concurrent Computer ( CCUR) was down $0.19 (2.4%) to $7.69 on average volume. Throughout the day, 24,351 shares of Concurrent Computer exchanged hands as compared to its average daily volume of 24,100 shares. The stock ranged in price between $7.67-$7.97 after having opened the day at $7.76 as compared to the previous trading day's close of $7.88.

Concurrent Computer Corporation provides software, hardware, and professional services for the video market in North America, the Asia Pacific, Europe, and South America. It operates in two segments, Video Solutions and Real-Time Products. Concurrent Computer has a market cap of $73.3 million and is part of the technology sector. Shares are down 3.5% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Concurrent Computer as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on CCUR go as follows:

  • CCUR's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 8.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CCUR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, CCUR has a quick ratio of 2.27, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has exceeded that of the Computers & Peripherals industry average, but is less than that of the S&P 500. The net income increased by 15.5% when compared to the same quarter one year prior, going from $0.94 million to $1.08 million.
  • The gross profit margin for CONCURRENT COMPUTER CP is rather high; currently it is at 58.92%. Regardless of CCUR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CCUR's net profit margin of 5.91% is significantly lower than the industry average.
  • In its most recent trading session, CCUR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

You can view the full analysis from the report here: Concurrent Computer Ratings Report

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Interphase ( INPH) was another company that pushed the Computer Hardware industry lower today. Interphase was down $0.37 (7.4%) to $4.60 on heavy volume. Throughout the day, 39,849 shares of Interphase exchanged hands as compared to its average daily volume of 8,500 shares. The stock ranged in price between $4.53-$4.89 after having opened the day at $4.89 as compared to the previous trading day's close of $4.97.

Interphase Corporation, an information and communications technology company, provides connectivity, interworking, and packet processing solutions in the Pacific Rim, North America, and Europe. Interphase has a market cap of $40.6 million and is part of the technology sector. Shares are up 28.4% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Interphase as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and weak operating cash flow.

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Highlights from TheStreet Ratings analysis on INPH go as follows:

  • The gross profit margin for INTERPHASE CORP is currently lower than what is desirable, coming in at 32.97%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -29.59% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.77 million or 67.53% 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 Communications Equipment industry and the overall market, INTERPHASE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite currently having a low debt-to-equity ratio of 0.57, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that INPH's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.92 is high and demonstrates strong liquidity.
  • INTERPHASE CORP has improved earnings per share by 30.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, INTERPHASE CORP continued to lose money by earning -$0.39 versus -$0.54 in the prior year.

You can view the full analysis from the report here: Interphase Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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