UPDATE: William Blair & Company Downgrades GSE Holding Following Below-Expectations 3Q 2013 Revenue/Earnings

In a report published Monday, William Blair & Company analyst Brian Drab downgraded the rating on GSE Holding (NYSE: GSE) from Outperform to Market Perform.

In the report, William Blair & Company noted, “GSE reported third quarter 2013 revenue and earnings that came in below expectations. Revenue declined 3% year-over-year, to $118 million, below the consensus estimate of $124 million. Adjusted EBITDA of $7.5 million were down 40% year-over-year, and below the consensus estimate of $10.3 million. The substantial drop in profitability was primarily due to a 580-basis-point contraction in gross margin, to 11.6%, primarily driven by a competitive pricing environment and overcapacity in GSE's North American operations.”

GSE Holding closed on Friday at $2.66.