Friday's Small-Cap Winners & Losers

02/01/08 - 04:22 PM EST

AVID CAO HPOL INFN STAR

Mike Taylor

Updated from 2:16 p.m. EST with new stock prices

On a hesitant Friday for the broader market, small-cap stocks mostly stayed ahead of the pack and in positive territory. The Russell 2000 ticked up 2.3% to 729.98, and the S&P SmallCap 600 fared the same, rising 2.4% to 384.35.

Shares of CSK Auto CAO, a Phoenix, Ariz., seller of aftermarket auto parts and accessories, roared ahead 51.1% to $8.99 on news that O'Reilly Automotive made a bid for the company totaling about $845 million, or $8 a share, in cash.

Meanwhile, Sunnyvale, Calif.-based Infinera INFN, which operates a digital optical communication system governing network traffic, saw shares take off 44.1% to $14.69 on fourth-quarter earnings. Thursday after the close, the company posted non-GAAP earnings of $15.9 million, or 17 cents a share, vs. a loss of $7.3 million, or $1.04 a share, in 2006. Analysts polled by Thomson Financial were expecting EPS of 2 cents. This morning, Jeffries affirmed the news with an upgrade to buy from hold.

Also gaining on a Thursday post-close earnings report was provider of network functions and services Starent Networks STAR. For the fourth quarter, the Tewksbury, Mass.-based company swung to a profit of $4.2 million, or 6 cents a share, vs. a loss $1.2 million, or 44 cents a share, in 2006. The Street was looking for 3 cents a share. The stock climbed 28.6% to $15.90.

Fellow Tewksbury resident Avid Tech AVID, which makes digital-video editing equipment, was not faring so well. Excluding items, Avid turned a profit of $17.1 million, or 42 cents a share. This compares with $22.5 million, or 54 cents a share, in 2006 and analysts' EPS forecast of 51 cents. The company also said that 2008 would be a "transition year" for the company. Kaufman Bros. responded with a downgrade to sell from hold. Avid shares lost 19.4% to $20.88.

Finally, Harris Interactive HPOL, a Rochester, N.Y.-based Internet research and polling company, lost 21.1% to $2.50 on its fiscal second-quarter 2008 earnings. The company posted net income of $2.1 million, or 4 cents a share, marking a 42% decline from the year-ago quarter and a disappointment for Street analysts, who were looking for EPS of 6 cents.