Small software company which reported earnings today - here's a news summary:

Captaris Inc. (CAPA, $6.67, -$2.21, -24.89%) shares tumbled after the Bellevue, Wash.-based software company reported fourth-quarter net earnings of $2.25 million, or 8 cents a share, vs. $44,000, or breakeven a share, in the year-ago period. Revenue rose 2% to $25.2 million from $24.7 million. Analysts polled by Thomson Financial were expecting a per-share profit of 6 cents on revenue of $26 million

Does that justify a 25% sell-off? I doubt it. At worst, this could be good for a technical pop back to almost $8 over the next few weeks. If that doesn't happen you end up holding a profitable small-cap stock under $7. It has also penetrated the lower Bollinger Band with today's drop so it's definitely oversold short-term. There may be more downside before a bounce so don't load up on this risky trade - just dip your feet.