3 Stocks Pushing The Computer Software & Services Industry Lower

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The Computer Software & Services industry as a whole closed the day down 2.2% versus the S&P 500, which was down 1.8%. Laggards within the Computer Software & Services industry included Issuer Direct ( ISDR), down 1.7%, EFuture Information Technology ( EFUT), down 7.0%, Sonic Foundry ( SOFO), down 2.0%, CollabRx ( CLRX), down 2.5% and Image Sensing Systems ( ISNS), down 11.5%.

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

Image Sensing Systems ( ISNS) is one of the companies that pushed the Computer Software & Services industry lower today. Image Sensing Systems was down $0.33 (11.5%) to $2.54 on heavy volume. Throughout the day, 130,878 shares of Image Sensing Systems exchanged hands as compared to its average daily volume of 26,600 shares. The stock ranged in price between $2.40-$2.87 after having opened the day at $2.87 as compared to the previous trading day's close of $2.87.

Image Sensing Systems, Inc. develops and markets software-based computer enabled detection products and solutions for the intelligent transportation systems industry, and adjacent security and law enforcement markets. Image Sensing Systems has a market cap of $15.3 million and is part of the technology sector. Shares are down 42.0% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Image Sensing Systems a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Image Sensing Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on ISNS 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 158.6% when compared to the same quarter one year ago, falling from -$1.45 million to -$3.76 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 Electronic Equipment, Instruments & Components industry and the overall market, IMAGE SENSING SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$3.24 million or 1253.55% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.55%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 153.33% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • IMAGE SENSING SYSTEMS INC 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, IMAGE SENSING SYSTEMS INC reported poor results of -$3.21 versus -$0.69 in the prior year. This year, the market expects an improvement in earnings (-$0.58 versus -$3.21).

You can view the full analysis from the report here: Image Sensing Systems Ratings Report

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At the close, CollabRx ( CLRX) was down $0.04 (2.5%) to $1.54 on light volume. Throughout the day, 15,659 shares of CollabRx exchanged hands as compared to its average daily volume of 46,900 shares. The stock ranged in price between $1.54-$1.61 after having opened the day at $1.60 as compared to the previous trading day's close of $1.58.

CollabRx, Inc. provides cloud-based expert systems to inform healthcare decision-making. The company's cloud-based expert systems provide clinical knowledge to institutions, physicians, researchers, and patients for genomics-based medicine in cancer. CollabRx has a market cap of $4.6 million and is part of the technology sector. Shares are down 58.4% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates CollabRx a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates CollabRx as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CLRX go as follows:

  • 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 Health Care Technology industry and the overall market, COLLABRX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Looking at the price performance of CLRX's shares over the past 12 months, there is not much good news to report: the stock is down 51.70%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Health Care Technology industry average, but is less than that of the S&P 500. The net income has decreased by 17.0% when compared to the same quarter one year ago, dropping from -$0.81 million to -$0.95 million.
  • CLRX, with its very weak revenue results, has greatly underperformed against the industry average of 13.3%. Since the same quarter one year prior, revenues plummeted by 70.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • COLLABRX INC's earnings per share declined by 13.9% 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, COLLABRX INC continued to lose money by earning -$1.78 versus -$2.15 in the prior year. This year, the market expects an improvement in earnings (-$1.58 versus -$1.78).

You can view the full analysis from the report here: CollabRx 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.

Sonic Foundry ( SOFO) was another company that pushed the Computer Software & Services industry lower today. Sonic Foundry was down $0.21 (2.0%) to $10.35 on light volume. Throughout the day, 541 shares of Sonic Foundry exchanged hands as compared to its average daily volume of 6,100 shares. The stock ranged in price between $10.35-$10.41 after having opened the day at $10.41 as compared to the previous trading day's close of $10.56.

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 $44.6 million and is part of the technology sector. Shares are up 8.6% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Sonic Foundry a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Sonic Foundry 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

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Highlights from TheStreet Ratings analysis on SOFO go as follows:

  • The revenue growth came in higher than the industry average of 10.5%. 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.
  • 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 0.88 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.

You can view the full analysis from the report here: Sonic Foundry 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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