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Excerpt from today's One Page Annotated Wall Street Journal Summary (which you can get emailed to you every morning by signing up here):

SMALL STOCKS: Airspan, Saba Software Plunge; Russell Ends Quarter 5.3% Lower

  • Summary: Airspan Networks (AIRN) down 34% on announcing a delivery delay for its WiMax products to a major customer; e-learning software company Saba Software (OTCPK:SABA) down 21% on disappointing earnings results; biotech company Dendreon (NASDAQ:DNDN) up 12% on plans to submit a license application to the FDA later this year for a prostate cancer drug; Chinese telecom product firm Qiao Xing Universal Telephone (XING) down 20% on disappointing earnings; measurement systems Faro Technologies (NASDAQ:FARO) up 14% on an analyst upgrade in response to earnings; video game and music distributor Handleman (HDL) down 4.6% on disappointing earnings; Ultra Clean Holdings (NASDAQ:UCTT) up 12% on announcing the acquisition of Sieger Engineering.
  • Comment on related stocks/ETFs: The e-learning market has been a disappointment to investors. There are two small cap stocks in the space: Saba Software (OTCPK:SABA) and SumTotal (SUMT). Saba's stock tumbled on news of its earnings miss, but SumTotal closed at $6.27 after opening at $6.41. The question for investors is whether Saba's problems are company-specific or indicative of wider weakness in the e-learning market. From my vantage as a board member of privately-held competitor Cornerstone OnDemand, it's both. The software market is moving rapidly to hosted solutions and average selling prices are falling. One year chart comparing Saba to SumTotal below; click to enlarge:

    saba and sumtotal chart
Source: Smallcap Stock Report: Saba vs SumTotal, Earnings Hits and Misses