Tech Stocks in Motion: CATT

Updated from 2:23 p.m. EDT

Shares of Catapult Communications(CATT Quote) were among technology's losers Friday, falling 27.8% after the company posted solid second-quarter results but warned that third-quarter results would fall well below expectations.

The maker of digital telecom test systems earned $5.4 million, or 36 cents a share, on sales of $19.1 million. Analysts surveyed by Thomson First Call were expecting earnings of 34 cents a share on sales of $19 million. A year ago the company earned $4.5 million, or 32 cents a share, on sales of $17.2 million. Results in the latest quarter were fueled by strong performance in Europe and further growth in other parts of the world. Looking ahead, the company said its current business conditions suggest "caution." As a result, Catapult forecast third-quarter earnings of 14 cents a share on sales of $14.3 million.

Analysts had been expecting earnings of 25 cents a share on sales of $16.8 million. Higher costs associated with Sarbanes-Oxley compliance and investment in its sales and development staff contributed to the weak third-quarter outlook. Shares traded down $5.54 to $14.42.

Google(GOOG Quote) rose 5.7% after the company posted blowout first-quarter earnings and sales. The company earned $369.2 million, or $1.29 a share, on net sales of $794.5 million, which strips out fees that Google pays to other Web sites in its advertising network. Analysts were expecting earnings of 92 cents a share on sales of $729.8 million. Since going public in August 2004 at $85 a share, shares of Google have climbed by more than 150%. Shares traded up $11.59 to $215.81.

Shares of SanDisk(SNDK Quote) fell 9.2% after the maker of flash-memory products posted first-quarter sales that fell well below expectations. The company earned $74.5 million, or 39 cents a share, on sales of $451 million. Analysts were expecting a lower profit of 32 cents a share on sales of $467.2 million. A year ago the company earned $63.6 million, or 34 cents a share, on sales of $386.9 million. Shares traded down $2.56 to $25.32.