Tech Stocks in Motion

Updated from 12:37 p.m. EST

Shares of Cognizant Technology Solutions(CTSH) were among technology's winners Thursday, rising 17.4% after the company posted fourth-quarter earnings and sales above expectations and said that 2005 earnings and sales would be better than expected.

The information technology services company posted fourth-quarter earnings of $30.6 million, or 21 cents a share, on sales of $172.8 million. Analysts surveyed by Thomson First Call were expecting earnings of 19 cents a share on sales of $169.2 million. A year ago the company earned $17.7 million, or 13 cents a share, on sales of $155.4 million.

Looking ahead, Cognizant forecast in-line first-quarter earnings of 21 cents a share on sales of $180 million, which is shy of analysts' estimates of $183.1 million. For all of 2005, the company expects earnings of 96 cents a share on sales of $845 million. Analysts had been expecting earnings of 93 cents a share on sales of $828.7 million. Shares traded up $6.38 to $43.09.

Activision(ATVI) fell 14.6% after the company said that some of its directors, officers, and employees sold almost 7.1 million shares late Wednesday in a block sale that was arranged by Citigroup. None of the selling shareholders, according to the company, sold more than one-third of their total holdings of stock or options. The sales were "made to take advantage of a brief trading window and do not reflect any individual or collective judgment about the company's prospects," the company said in a regulatory filing.

Earlier this week, Activision provided Wall Street with a disappointing outlook for near-term earnings but said that 2006 earnings and sales would be better than expected. The company predicted that it would earn 91 cents a share during 2006 and enjoy sales of $1.43 billion. Analysts, at the time, had expected earnings of 85 cents a share on sales of $1.3 billion. Shares traded down 3.49 to $20.41.

Despite posting fourth-quarter results that were weaker than expected, shares of LCC International(LCCI) rose modestly Thursday. The company posted a pro forma loss of $900,000, or 4 cents a share, on sales of $44.6 million. Analysts were expecting a profit of 4 cents a share on sales of $49.5 million. A year ago the company earned 3 cents a share on sales of $43.7 million. Looking ahead, LCC said that it expects a modest loss during the first quarter on sales that are similar to fourth-quarter results of $44.6 million. Analysts had been expecting a profit of 3 cents a share on sales of $47.9 million. Shares traded up 4 cents to $5.25.