By Joann Muller, Globe Staff

BEAR PROFILES DynaGen, Inc. Palomar Medical Technologies Inc. Designs Inc. Converse Inc. SystemSoft Corp. MAIN STORY Bulls and Bears

ast year started out OK for SystemSoft but quickly deteriorated as a series of problems piled up, causing revenues to plummet in the fourth quarter and profits to evaporate.

The Natick-based software company's stock sank 63 percent in the 12 months that ended March 31, falling from $10 a share to $3.69.

SystemSoft licenses software technology that computer makers build into their machines. Its products help computers communicate with devices such as modems and monitors, and can even let computers diagnose glitches and heal themselves.

For the fiscal year that ended Jan. 31, SystemSoft had revenues of $42.6 million, up from $39.6 million the year before. Its net loss narrowed to $19.7 million, from $37.6 million the previous year.

Like many technology firms, SystemSoft was hurt last year by the economic turmoil in Asia, where computer sales slowed dramatically.

The company also blamed actions by Microsoft Corp. for part of its troubles. Microsoft has begun incorporating into its operating system many of the functions SystemSoft provides, causing SystemSoft sales to shrivel. Also, the delay in the launch of Microsoft's Windows 98 software has hurt sales of SystemSoft's new technology for linking peripheral devices to computers.

''We got bit on two sides by Microsoft,'' said John Ambrose, vice president of corporate marketing.

Meanwhile, the company's revolutionary SystemWizard software, which allows computers to find and fix their own glitches, has been slow to produce revenues because computer makers haven't yet incorporated the feature into their full product lines.

Under new president Deborah M. Besemer, SystemSoft is trying to regroup, but has been hampered by the near-total turnover of its sales force.

Wall Street analysts expect the company to break even, or to be marginally profitable, by the end of the year.