Sapient (SAPE

)posted a first quarter net loss of $0.16 per share. RW Baird cut its rating on the stock to market underperform from market perform.

Analyst Gary Dean tells Standard & Poor's MarketScope that Sapient is competing in the most challenged portion of the information technology (IT) services market: application development. He notes that demand is soft after over-investment in 1998-2000 and IT budget cutbacks due to the 2001 recession. He expects large cash declines over the next two quarters. The analyst widened his $0.35 2002 loss estimate to a $0.57 loss, and cut his $212 million revenue forecast to $171 million. Although Dean would revisit his estimates once revenues stabilize or reaccelerate, at their current level, he thinks there is still some downside risk to the stock price.