Top 10 Worst Performing VARBusiness 500 Stocks Of 2007
NAME: Sento
LOCATION: Orem, Utah
2007 VARBusiness 500 RANK: 344
Interim CEO: Kim Cooper
TICKER SYMBOL: SNTO.PK
STOCK PRICE, JAN. 3, 2007: $2.33
STOCK PRICE, DEC. 14, 2007: $0.14
PCT. CHANGE: -94%
SPECIALTY: Call center services provider.
FINANCIALS: Stock was delisted by Nasdaq in September, resulting from the issuance of 430,000 shares to executives without shareholder approval or filing with the exchange. The company now trades on the over-the-counter market and has not released its financials in several quarters.
NAME: Verso Technologies
LOCATION: Atlanta
2007 VARBusiness 500 RANK: 383
CEO: Steve Odom
TICKER SYMBOL: VRSO
STOCK PRICE, JAN. 3, 2007: $1.16
STOCK PRICE, DEC. 14, 2007: $0.37
PCT. CHANGE: -68.1%
SPECIALTY: Networking solutions for telecommunications service providers and enterprises.
FINANCIALS: Company has lost $16.5 million through three quarters this year, after losing $13.4 million in the year-ago period. Revenue has increased to $38.2 million from $28.5 million for the same periods.
NAME: Dyntek
LOCATION: Irvine, Calif.
2007 VARBusiness 500 RANK: 261
CEO: Casper Zublin Jr.
TICKER SYMBOL: DYNK.OB
STOCK PRICE, JAN. 3, 2007: $0.15
STOCK PRICE, DEC. 14, 2007: $0.05
PCT. CHANGE: -66.7%
SPECIALTY: IT security, unified communication, virtualization, Microsoft Information Worker, and application infrastructure and delivery solutions.
FINANCIALS: Announced plans to file a Form 15 on Dec. 18, 2007 to deregister its common stock and suspend its reporting obligations to the SEC.
"In the board's estimation, the costs and administrative burdens associated with being a public company have simply become too massive for a company of our size and stage of growth," said the company in a filing. Lost $3.2 million in the first fiscal quarter ended Sept. 30 on $30.1 million in sales.
NAME: BearingPoint
LOCATION: McLean, Va.
2007 VARBusiness 500 RANK: 28
CEO: Ed Harbach
TICKER SYMBOL: BE
STOCK PRICE, JAN. 3, 2007: $7.87
STOCK PRICE, DEC. 14, 2007: $2.25
PCT. CHANGE:-65.06%
SPECIALTY: Provides management and technology consulting services to Global 2000 companies and government organizations in 60 countries.
FINANCIALS: Its stock tumbled in early December after reporting a third-quarter loss that more than doubled as higher costs outpaced a sales increase. In the quarter, the company posted a $68 million loss, or 32 cents per share, compared with $29.6 millio loss, or 14 cents per share, during the same period a year earlier. Analysts had been expecting a loss of 11 cents per share, on average, according to Thomson Financial. The same day, Harbach replaced Harry You as CEO.
NAME: MTM Technologies
LOCATION: Stamford, Conn.
2007 VARBusiness 500 RANK: 145
CEO: Steven Stringer
TICKER SYMBOL: MTMC
STOCK PRICE, JAN. 3, 2007: $1.60
STOCK PRICE, DEC. 14, 2007: $0.60
PCT. CHANGE: -62.5%
SPECIALTY: Convergence, consolidation and virtualization solutions, as well as managed services including system monitoring and management, hosting, security management, IP telephony management, and IT support.
FINANCIALS: Lost $7.2 million, or 74 cents per share, on $129.3 million in sales through the last two fiscal quarters. The results compare to an $18.4 million loss, or $1.58 per share, on $143 million in sales for the same quarters last year.
NAME: Infologix
LOCATION: Hatboro, Penn.
2007 VARBusiness 500 RANK: 312
CEO: David T. Gulian
TICKER SYMBOL: IFLG
STOCK PRICE, JAN. 3, 2007: $5.17
STOCK PRICE, DEC. 14, 2007: $2.02
PCT. CHANGE: -60.9%
SPECIALTY: Mobility solutions and professional services used in the implementation, management and deployment of mobile computing technology projects. Primary verticals are healthcare, retail, field force automation, warehouse management, pharmaceutical and transportation logistics.
FINANCIALS: For the third quarter ended Sept. 30, 2007, the company reported total revenue of $20.1 million, an increase of 26 percent as compared to $16.0 million for the comparable period in 2006. The increase in revenue for the comparable periods was due to an increase in sales of mobile and stationary workstations, third party wireless implementations, and managed services, which sales were partially attributable to an increase in the company's sales force. Gross margin increased to 27.6% for the third quarter of 2007 compared with 26.6% for the third quarter of 2006 as the result of an increase in higher margin mobile solutions which include services, warranties and support.
NAME: Cognizant Technology Solutions
LOCATION: Teaneck, N.J.
2007 VARBusiness 500 RANK: 49
CEO: Francisco D'Souza
TICKER SYMBOL: CTSH
STOCK PRICE, JAN. 3, 2007: $77.76
STOCK PRICE, DEC. 14, 2007: $32.20
PCT. CHANGE: -58.59%
FINANCIALS: While the company reported third-quarter revenue and profit above expectations, its forecast for fourth-quarter growth forecast was not as optimistic as in the past. Cognizant's third-quarter net income increased to $96 million, or 32 cents a share, from $61 million, or 20 cents a share, in the same quarter a year earlier. But investors sold off during the fall, apparently spooked by a slowdown in fourth-quarter IT spending.
NAME: Axciom
LOCATION: Little Rock, Ark.
2007 VARBusiness 500 RANK: 50
CEO: Charles Morgan (ret.)
TICKER SYMBOL: ACXM
STOCK PRICE, JAN. 3, 2007: $25.40
STOCK PRICE, DEC. 14, 2007: $11.23
PCT. CHANGE: -55.8%
SPECIALTY: Database marketing services and data management software.
FINANCIALS: Revenue for the second quarter of Axicom's fiscal 2008 was $351.0 million, an increase of 0.8 percent compared with $348.3 million for the comparable prior-year period. Income from operations for the three-month period equaled $20.4 million compared to $41.9 million for the quarter ended Sept. 30, 2006. The stock was pushed down also in October, after a proposed buyout deal fell apart. As a result, CEO Morgan retired, but is acting in the capacity until a replacement is named.
NAME: Datalink
LOCATION: Chanhassen, Minn.
2007 VARBusiness 500 RANK: 180
CEO: Charlie Westling
TICKER SYMBOL: DTLK
STOCK PRICE, JAN. 3, 2007: $7.63
STOCK PRICE, DEC. 14, 2007: $3.79
PCT. CHANGE: -50.3%
SPECIALTY: Storage area networks, network-attached storage, direct-attached storage, IP-based storage and services.
FINANCIALS: Through three fiscal quarters, the company had lost $221,000, or 2 cents per share, compared to a $4.1 million profit, or 38 cents per share, for the same period last year. Sales had increased slightly to $79.6 million from $76.4 million for the same periods.
NAME: General Communication
LOCATION: Anchorage, Alaska
2007 VARBusiness 500 RANK: 304
CEO: Ronald Duncan
TICKER SYMBOL: GNCMA
STOCK PRICE, JAN. 3, 2007: $16.10
STOCK PRICE, DEC. 14, 2007: $8.22
PCT. CHANGE: -49%
SPECIALTY: Video, data, voice and wireless services. The largest telecommunications company in Alaska.
FINANCIALS: The company earned $2.2 million, or 4 cents per share, in the third fiscal quarter, compared to net income of $6.5 million, or 12 cents per share, for the same quarter last year. Revenue increased 7 percent to $133.9 million for the same period.