Tech Stocks in Motion

Shares of Electroglas(EGLS) were among technology's losers Friday, falling 25% after the company warned that first-quarter sales would be significantly below its previous guidance.

The company, which makes wafer probers used by semiconductor manufacturers, now expects sales of $7.7 million to $8 million, well below its previous guidance of $11.2 million. Analysts polled by Thomson First Call had been expecting sales of $11.5 million. The company said that its book-to-bill ratio was weak and that it consumed backlog during the quarter. Book-to-bill ratios for test, assembly and packaging vendors continued to fall during the first two months of the year as well, it said. The sales warning marks the second straight quarter in which Electroglas disappointed Wall Street. In early January, the company's stock took a hit after it warned that fourth-quarter sales would be below expectations. Shares were trading down 95 cents to $2.88.

Emulex(ELX) rose 2% after the company raised its third-quarter earnings and sales outlook. The storage networking systems company now expects pro forma earnings of 23 cents to 24 cents a share, up from previous guidance of 18 cents to 19 cents a share. Sales, meanwhile, are now expected to be between $101 million and $102 million, up from previous guidance of $91 million to $93 million. Analysts had been expecting earnings of 19 cents a share on sales of $91.9 million. "During the third quarter, Emulex experienced a continuation of the broad strengthening of demand that occurred in the December quarter," it said, "resulting in record sales of our fibre channel solutions and delivering our first quarter that exceeded $100 million in revenue." Emulex plans to report earnings on April 21. Shares were trading up 39 cents to $19.39.

Shares of Tekelec(TKLC) traded actively after the company named William Everett as its new chief financial officer. The telecom equipment company said it made the decision to hire Everett after several months of evaluating potential candidates for the position. Everett most recently served as CFO of Steleus Group, which Tekelec acquired in October 2004. Shares were trading down 18 cents to $14.72.