Tech Industry

Cambridge Technology shares drift to 52-week low

Cambridge Technology shares fell 1 1/2, or 20 percent, to a 52-week low of 6 3/16 Wednesday after CS First Boston cut the Internet consulting firm from a "buy" recommendation to a "hold."

CS First Boston's Mark Wolfenberger also cut iGate Capital (Nasdaq: IGTE) from a "buy" to a "hold" rating. iGate shares trimmed 1/4 to 7.

In its second quarter, Cambridge Technology (Nasdaq: CATP) posted a wider-than-expected loss, dropping $11 million, or 18 cents a share, on sales of $159.9 million.

Analysts were expecting a loss of 12 cents a share in the quarter.

After announcing its disappointing results in July, company officials said it expects to return to profitability in the fourth quarter.

However, it expects its traditional business of integrating electronic business systems declining by 30 to 40 percent this year as it moves more into consulting on Internet strategies.

First Call Corp. consensus expects Cambridge Technology to lose 4 cents a share in its third quarter and 34 cents a share in the fiscal year.

Its shares moved up to a 52-week high of 27 in December.

Fourteen of the 19 analysts following the stock rate it a "hold."