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The Computer Hardware industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.3%. Laggards within the Computer Hardware industry included Interphase ( INPH), down 2.9%, Mad Catz Interactive ( MCZ), down 3.0%, SMART Technologies ( SMT), down 2.3%, Key Tronic ( KTCC), down 2.3% and Echelon ( ELON), down 3.2%.

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

SMART Technologies ( SMT) is one of the companies that pushed the Computer Hardware industry lower today. SMART Technologies was down $0.03 (2.3%) to $1.30 on heavy volume. Throughout the day, 150,163 shares of SMART Technologies exchanged hands as compared to its average daily volume of 93,800 shares. The stock ranged in price between $1.30-$1.35 after having opened the day at $1.30 as compared to the previous trading day's close of $1.33.

SMART Technologies has a market cap of $161.7 million and is part of the technology sector. Shares are down 39.3% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate SMART Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.

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At the close, Mad Catz Interactive ( MCZ) was down $0.01 (3.0%) to $0.46 on light volume. Throughout the day, 82,371 shares of Mad Catz Interactive exchanged hands as compared to its average daily volume of 198,300 shares. The stock ranged in price between $0.46-$0.48 after having opened the day at $0.47 as compared to the previous trading day's close of $0.48.

Mad Catz Interactive, Inc. designs, manufactures, markets, sells, and distributes various entertainment products in the United States and internationally. Mad Catz Interactive has a market cap of $30.0 million and is part of the technology sector. Shares are down 9.7% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Mad Catz Interactive as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from TheStreet Ratings analysis on MCZ go as follows:

  • The gross profit margin for MAD CATZ INTERACTIVE INC is currently lower than what is desirable, coming in at 32.57%. Regardless of MCZ's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MCZ's net profit margin of -7.43% significantly underperformed when compared to the industry average.
  • 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 Household Durables industry and the overall market, MAD CATZ INTERACTIVE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • MCZ, with its decline in revenue, slightly underperformed the industry average of 7.1%. Since the same quarter one year prior, revenues fell by 10.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.87, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.45 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

You can view the full analysis from the report here: Mad Catz Interactive Ratings Report

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Interphase ( INPH) was another company that pushed the Computer Hardware industry lower today. Interphase was down $0.08 (2.9%) to $2.66 on light volume. Throughout the day, 3,378 shares of Interphase exchanged hands as compared to its average daily volume of 10,200 shares. The stock ranged in price between $2.66-$2.99 after having opened the day at $2.71 as compared to the previous trading day's close of $2.74.

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 $23.6 million and is part of the technology sector. Shares are down 27.1% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Interphase as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on INPH 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 Communications Equipment industry. The net income has significantly decreased by 26.0% when compared to the same quarter one year ago, falling from -$0.90 million to -$1.13 million.
  • The gross profit margin for INTERPHASE CORP is currently lower than what is desirable, coming in at 30.75%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -34.58% is significantly below that of the industry average.
  • Looking at the price performance of INPH's shares over the past 12 months, there is not much good news to report: the stock is down 28.98%, 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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.
  • INTERPHASE CORP's earnings per share declined by 23.1% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming 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

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